With inventory tight, Albany home prices continue to climb

Sales of new and existing homes in the Albany, N.Y., region fell 7% in May from year-earlier levels as real estate brokers blamed a lack of available homes for the decline. Tight supply also pushed sale prices higher. The average price rose 6% to $236,065, while the median price was up 5 percent to $205,000.

The data, from the Greater Capital Association of Realtors, covers an 11-county area including the Capital Region. The report was issued Wednesday.

Construction of single-family homes in the immediate four-county area has been virtually flat over the past five years, according to data from the Capital District Regional Planning Commission. New construction typically commands a higher price; the association reported that the median price of new homes surged 16% in May, to $420,565, from year-earlier levels.

Albany, N.Y.

"The root cause of underperforming sales activity in much of the country this year continues to be the utter lack of available listings on the market to meet the strong demand for buying a home," said Lawrence Yun, chief economist for the National Association of Realtors.

Sales were off in each of the four counties, falling 5% in Albany, 6% in Rensselaer, 8% in Schenectady and 10% in Saratoga. The median price was up 5% in Albany County to $223,100, 4% in Rensselaer County to $169,950, 1% in Saratoga County to $292,000 and 9% in Schenectady County to $168,500.

Mortgage rates, meanwhile, are rising. Bankrate.com reported rates on 30-year fixed-rate mortgages moving above 4% in the Albany area.

"Even in the face of rising mortgage rates, buyers throughout the Capital Region are pursuing the American dream of owning their own home," said Susan Sommers of Better Homes and Gardens Tech Valley and the association's president. Brokers "are very busy showing, selling and closing."

Tribune Content Agency
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