Fraida's Market Blog

Market Update

2010-04-01T08:37:00.001-07:00

Preliminary numbers for Albany County Single Family homes sales are in. Closed units were 138 in March compared to 145 last March. Year to date, closed sales are 341, up from last March year to date's number of 323. Both the average and median selling prices for the first quarter of 2010 are down. The median of $187,000 this year vs. $196,500 last year and the average of $216,000 this year vs. $222,000 last year. For the first quarter of this year, sellers are averaging 96.7% of their asking price compared to 95.3% for the first quarter of last year. Days on Market have also improved from 87 in the first quarter of 2009 to 81 in the first quarter of this year.
With 1319 active single family listings in Albany County as of April 1 and 214 pending sales in March, the inventory has tighted up to a 6.1 month supply compared to the 9 month supply in January and February. If this continues we will see prices begin to level out as we reach a balanced market for the first time in six months.
Mortgage rates are still in the low 5% range for 30 year fixed rate mortgages.

Market Update

2010-03-01T12:58:00.000-08:00

Closed single family home sales in Albany County numbered 90 For February with the two month year to date number at 189 compared to 178 for the same two month period last year.Year to date, the median sale price is $183,000 vs. $190,000 last year but the average sale price for this year vs. last year is unchanged at $213,000. Sale to list price ratio is up a point this year to date at 96.2% vs 95.2% last year. Average days on market are up so far this year at 86 days vs. 81 days for the same two month period last year.

Single family listings in Albany County totaled 1288 as of March 1 and pending contracts numbered 144 in February. This gives us an 8.9 month supply of inventory.

30 year fixed home mortgage rates are still in the 5% range and we have two more months (up to April 30) for the first time homebuyer tax credit and the homeseller tax credit.

2010-02-24T13:54:00.001-08:00

Market Update

2010-02-02T07:06:00.000-08:00

Single family closed home sales in Albany County numbered 83 for the month of January compared to 97 in January '09. The average selling price (including seller concessions) was $219,000 vs. $230,000 the previous January and the medina selling price was $188,000 vs. $200,000. Average days on the market were 76 this January compared to 81 last January and the average % of asking price received (including seller concesssions) was 96.6% this past January compared to 95% in January '09.

Active single family listings as of February 1 in Albany County totaled 1229. Pending sales (homes going under contract) in January were 126 giving us a 9.7 month supply of inventory.

30 year fixed mortgage rates are still in the low 5% range.

The above home sale numbers reflect the fact that most of the current market activity is predominantly in the $175,000 to $250,000 price range.

Market Update

2010-01-04T08:22:00.000-08:00

Final Albany County December and 2009 year end numbers are in and show the following. December '09 looks like it was somewhat slower than December '08 with 142 single family homes closed compared to 167 in December '08. For the year ended December 31, 2009, the number of single family home sales that closed in Albany County was 2134 compared to 2135 the previous year. The average selling price fell from $235,000 to $224,000 and the median price fell from $202,000 to $200,000. Albany County home sellers averaged 96.9% of their asking price in 2009 compared to 97.2% in 2008. Average days on market increased in 2009 to 71 from 66 in 2008.

As of year end their is an 11 month supply of homes in Albany County on the market with 1174 active listings against 104 pending contacts of sale in December. Mortgage interest rates are still in the low 5% range for 30 year fixed mortgages. We expect these rates to start rising in 2010.

Market Update

2009-12-01T08:58:00.000-08:00

There were 163 single family home sales in Albany County that closed in November which compares to 160 closed the previous November. Average days on market were virtually unchanged, 59 this November compared to 60 last November. Sale to list price ratio and median selling price were also virtually unchanged at 97.2% and $200,000 for both this year and last year during November.

For the 11 months year to date, closed single family home sales in Albany County numbered 1943 this year vs. 1968 last year. Average days on market increased slightly this year from 66 last year to 71 this year. Sale to list price ratio also declined slightly from 97.2% last year to 96.9% this year. The mean selling price also declined slightly from $203,000 last year to $200,000 this year. The average selling price declined from $236,000 last year to $225,000 this year.

November pending single family contracts in Albany County numbered 132 compared to an active single family listing inventory of 1276 homes on December 1. This is a 9.6 month supply of inventory, up from 8.2 in October and 7.1 in September. 30 year fixed home mortgage rates were around 5% during November.

Home Buyer Tax Credit Extension

2009-11-09T06:58:00.000-08:00

First Time Homebuyer Tax Credit Extended Into 2010!Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What? The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit.

The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

Market Update

2009-11-02T07:23:00.000-08:00

Single family home sales in Albany County in October numbered 179 compared to 202 in October '08. Comparing this past October to last October, the average sale to list price ratio declined from 97.3% to 96.4% and the average days on the market remained the same at 61.

Year to date single family home sales in Albany County through October 31 were 1747 compared to 1808 during the same period last year. The median sales price fell 2% from $204,000 to $200,000. The average sales price fell 3.5% from $234,900 to $226,800. The sale to list price ratio declined from 97.4% in '08 to 96.8% this year to date. The average days on market has increased from 67 in '08 to 72 this year.

Pending Albany County single family home sales numbered 163 in October against an inventory of homes for sale of 1334. This results in an 8.2 month supply of inventory compared to a 7.1 month supply in September. Interest rates remain in the 5.25 - 5.5% range for good credit rated buyers of 30 year fixed mortgages. It appears that the home purchase tax credit will be extended though the April of next year. These conditions make it a good market for buyers.

First Time Homebuyer Tax Credit

2009-10-30T08:24:00.000-07:00

It looks like the $8000 federal tax credit for first time homebuyers will likely be extended through April 2010. Also appears that an additional tax credit will be available to some other homebuyers as well.

STEPHEN OHLEMACHER / Associated Press Writer WASHINGTON -- Senators have agreed to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. A spokeswoman for Senate Majority Leader Harry Reid said senators agreed Wednesday to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years.
A congressional aide said the tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes. The aide, who spoke on condition of anonymity, was not authorized to publicly discuss the deal.
(Copyright 2009 by The Associated Press. All Rights Reserved.)

Selling Your Home During the Holidays

2009-10-13T09:20:00.000-07:00

Some people think that the end of the year (holiday time) is not a good time to sell their home. Not so! Please read Fraida's comments in a recent Times Union story by Jennifer Gish.
http://www.timesunion.com/ASPStories/Story.asp?StoryID=851175&LinkFrom=RSS&TextPage=1

Market Update

2009-10-01T08:06:00.000-07:00

Closed single family house transactions in Albany County numbered 169 in September '09 vs. 181 in September '08. The average percentage of asking price received was 97.7% last month vs. 96.5% last September. Average days on market were up from 58 in September '08 to 67 in September '09.

Year to date, for the first three quarters of 2009, there were 1535 single family homes sold in and closed in Albany County compared to 1606 for the same period last year. The median selling price declined to $200,000 from $204,540 and the Sale to List price ratio declined to 96.9% from 97.2%. The average days on the market increased from 67 in '08 to 73 in '09.

October 1 single family homes for sale in Albany County were 1326. There were 186 homes that went under contract in September indicating a 7.1 month supply of single family inventory in Albany County.

30 year fixed mortage rates remain at historic lows in the 5.25 to 5.5% range.

2009-09-01T07:34:00.000-07:00

Market Update

Closed single family home sales in Albany County numbered 222 for the month of August '09 compared to 251 for the previous August. The median sales price was $212,500 compared to $202,500 the previous August and the sale to list price ratio (percentage of asking price received) was 97.9% in August '09 vs. 96.9% in August '08. Generally this reflects the spike in pending sales activity that occured in June and July of this year. The average days on market for the month was 63 compared to 58 the previous August.

Not withstanding the activity during June and July, year to date numbers are running slightly behind the same period in '08. Closed single family units were 1329 this August year to date compared to 1425 in '08. The median sales price slipped from $205,000 in '08 to $200,000 so far this year. The sale to list price ratio also fell from 97.3% in '08 to 96.8% this year to date. The average days on market has increased this year to date to 74 from 68 during the same period last year.

As of September 1, the inventory of single family homes for sale in Albany County stood at 1328
and pending sales in August numbered 171 indicating a 7.8 month supply of inventory on the market. This indicates a market that now slightly favors buyers compared to the balanced market in June and July. Mortgage rates are still in the 5.5% range for a 30 year fixed rate mortgage. First time homebuyers still have a few more months to purchase their home and receive an $8000 federal tax credit on their tax return next spring.

Market Update

2009-08-04T12:58:00.000-07:00

Sold and closed single family homes in Albany County numbered 224 in July '09 vs. 216 in July '08. The median selling price was significantly lower than the previous July, $200,000 vs. $225,000, but year to date the median price is only down 2% from the first 7 months of this year compared to the same period last year. Sale price vs. list price ratio was down from 97.9% in July '08 to 97.2% this past July. Average days on market increased from 59 in July '08 to 68 in July '09.

Year to date comparisons showed a decline in unit count of 1067 for the first 7 months of this year compared to 1174 for the same period last year. Sale to list price ratio declined to 96.6% year to date this year vs. 97.4% last year. Average days on market increased to 77 from 71 last year.

Pending sales of single family homes in Albany County in July were 228, down slightly from 251 in June. With an existing inventory of 1318 homes there is a 5.8 month supply of homes on the market, up from a 5.2 month supply last month. This is still a balanced market. 30 year fixed home mortgage rates remain in the 5.25 to 5.5% range.

Market Update

2009-07-01T10:53:00.000-07:00

Sold and closed single family homes in Albany County numbered 191 for June '09, compared to 232 for June '08. Both the average and median sale price for the month slipped from the previous June...the median from $207,500 in June '08 to $200,000 in June '09 and the average from $230,761 in June '08 to $228,363 in June '09. The sale price to list price ratio remained unchanged at 97% and the average days on market decreased by 1 from 71 in June '08 to 70 in June '09.

Year to date Albany County single family home sale numbers were off 15%...813 for the first six months of this year compared to 957 in the six months ended June 30, 2008. The average sale price declined from $229,093 in '08 to $225,548 for the first six months of this year. The median sale price is unchanged at $200,000. The average sale to list price ratio fell from 97.2% for the first half of '09 to 96.4% for the first half of this year. Average days on market also increased from 73 in '08 to 80 so far this year.

30 year fixed mortgage rates ranged from just below 5% to 5.5% last month. The current inventory of single family homes for sale in Albany County stood at 1294 as of July 1. The number of homes that went pending (signed a purchase contract) in June was 251...giving us a 5.2 month supply of homes on the market, down slighty from last month's 5.4 and indicating a balanced market.

2009-06-01T12:47:00.000-07:00

Market Update

Albany County single family closed home sales in May were down 28% from May '08 ...129 closed units this month compared to 179 in May '08. Median sale price for May '09 was $210,000, up from $204,500 last May. Sale price to list price ratio remained about the same..96.7% in May, '09 compared to 97.5% in May '08. Average time on the market remained the same... 74 days this May to 75 days last May.

Year to date, closed Albany County single family home sales are still down 18.6% from the same period last year with 590 closed through 5/31/09 vs. 725 during the same period last year. Albany County single family home sale prices are holding (down 1%) during the first five months of this year vs. the first five months of last year with the YTD median selling price this year at $197,700 vs. $199,820 last year. Median sale price in the surrounding counties have declined somewhat more (as much as 10% in Saratoga County).

The velocity of the single family home sale market has increased slightly from last month. As of June 1 there are currently 1289 single family homes on the market and there were 239 pending sales in May leaving us a 5.4 month supply of inventory..down from 6.2 month supply at the beginning of May. 30 year conventional home mortgage rates were between 4.9 and 5.25% during the previous month.

Market Update

2009-05-01T12:50:00.000-07:00

Closed single family home sales in Albany County numbered 129 in April '09 compared to 169 the previous April. The median home sale price remained unchanged at $192,000. The average sale to list price ratio (the percentage of the asking price the seller is receiving) dropped slightly to 97% this April from 97.4% the previous April and the average days on the market increased to 87 from 67 in April '08.

The four month year to date single family home sale numbers in Albany County showed sold and closed homes at 441 through April 30, 2009 compared to 546 during the same period in '08... a 19% drop. The median home sale price dropped slightly from $197,800 in '08 to $195,000 in '09. The average sale to list price ratio has dropped to 96% from 97.2% and the average days on market has increased to 88 from 74.

The velocity of the Albany County single family home market in April was similar to last month with a 6.2 month supply of inventory on hand as of May 1, 2009 (6.1 month supply at April 1). April pending sales contracts numbered 200 (192 in March) and the number of active listings on May 1 was 1253 (1165 on April 1).

Mortgage interest rates are still very low hovering around the 5% mark (30 year fixed rates).

Market Update

2009-04-01T08:15:00.000-07:00

Single family home closings in Albany County dropped 21% in March '09 from the previous March...117 vs. 149. The median sale price dropped 2.5% to $195,000, the average sale to list price ratio dropped to 95.8% from 97.3% and the average days on market increased from 81 last March to 93 this past month.
Year to date numbers followed suit. Closed single family homes dropped 23% during the first quarter to 289 from 377 last year. Median sale price fell 2.5% to $195,000 and sale to list price ratio fell to 95.4% from 97.2% and average days on market increased to 87 during the first quarter of this year from 77 during the same period last year.
The inventory of single family homes for sale in Albany County as of April 1 was 1165. Pending sales (homes that went under contract) in March were 191 indicating a 6.1 month supply of homes.
With interest rates at almost all time lows and the $8000 federal tax credit for first time home purchasers (folks who have not bought a home in the last three years), the 2nd quarter is shaping up to be a very active period for Albany County home buyers and sellers.

Mortgage Rates

2009-03-25T07:45:00.000-07:00

30 year fixed mortgage rates have dropped below 5%, a fifty year low. This resulted from the Fed's actions last week.

Home Buyer Tax Credit

2009-03-03T07:42:00.000-08:00

As part of the latest "Economic Stimulus Bill" recently signed into law, there is a credit for certain home buyers who buy homes in 2009.

1. $8,000 for "first time" buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000.00 proposal. This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000 and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, This one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability. In other words…unlike the $15,000 tax credit, this tax credit will be refunded to a buyer, if his year end tax liability is less than the credit.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

7. If the buyer closes on the home by June 30, 2009, they can actually take the credit on their 2008 tax return rather than wait to claim it on their 2009 return.

Market Update

2009-03-03T07:41:00.000-08:00

Sold and closed single family homes in Albany County were 66 in February, down from 102 in February '08. The median selling price was also down to $180,000 from $190,000 the previous February. The average percentage of asking price received by Albany County sellers was 95.4% compared to 96% the previous February. Average Days on Market fell from 89 last February to 81 this.

Pending sales (purchase contracts signed) in February 09 were 150 against an inventory of 1142 single family homes, or a 7.6 month supply of homes an improvement from January.

Market Update

2009-02-07T07:40:00.000-08:00

Sold and closed single family homes in Albany County numbered 89 in January, down from 126 the previous January. Three other market activity indicators also lost ground. The average selling price was $234,000, down from the previous January number of $239,000. The average percentage of asking price also fell from 97.8% last January to 94.8% this year. Average days on the market increased from 61 last January to 84 this January.

Pending sales (purchase contracts signed) in last month were 110 against an inventory of 1200 homes, or a 10.9 month supply.

2008 Market Summary

2009-01-07T07:22:00.000-08:00

2008 was the year that saw significant market corrections across most of the country. Housing prices that seemed like they could only go up a few years ago have declined by as much as 50% in some of the real estate markets across the country. Misguided congressional legislation and poor regulatory oversight led to private market lending practices that fueled an unnatural and unsustainable housing bubble that finally burst this year with far reaching consequences.

The big years for Capital Region homeowners were 2003-2005 when annual sold and closed units were at the highest levels, seller’s realized the highest percentage of their asking prices and sold homes were on the market for the shortest periods of time. Average home sales prices increased 42% during those three years alone.

The good news for us is that the Capital Region, and more specifically Albany County, has so far fared pretty well comparatively speaking. The most notable occurrence was the number of closed single family homes declined last year to 2097. Over the last 10 years, closed single family home sales in Albany County have ranged from 2008’s low of 2097 to 2004’s high of 2817, averaging 2535 each year. So we were off some 16% from the average in sold and closed homes during 2008. Unlike most parts of the country, however, prices in the Capital Region appear to be holding. The average sale price in Albany County last year was $236,000, the same as 2007. Seller’s averaged 97% of their asking price in 2008, down slightly from 97.5% in 2007. Average days on the market for the homes that sold was 66 which was the same number as 2007.

Despite the fact that 30 year fixed mortgage interest rates during 2008 were between the low 5% and high 6% range, historically low rates, there were fewer home buyers in the market place last year. Almost 4 out of every 10 houses listed last year did not sell. The houses that sold were the ones that looked the best and were priced the best of all the houses in that price range.

As we look forward to the coming year, one thing to keep in mind is the average selling price in Albany County has increased approximately 75% since 1999. It is likely that the real estate market we saw from 2002 to 2006 was the aberration not the norm. We are starting the year with very low interest rates which may even decline slightly in the first quarter and assuming consumers regain their confidence this year, 2009 will not be a repeat of 2008, but rather more like the norm…stable demand and stable prices. If consumers do not regain their confidence in 2009, however, then this year will look more like last year and we may see some decline in prices.

Market Update

2009-01-05T07:21:00.000-08:00

Happy New Year to all! Sold and closed single family homes in Albany County during December 2008 numbered 154, up 22 units from last month and down from last December's total of 176. Average selling price of the homes that sold was $233,387 and seller's were averaging 97.3% of their asking price in an average of 72 days on market.

December's pending contracts were 83 compared to 1168 homes on the market indicating a 14 month supply of homes at this rate of sale. December is traditionally a slower month and we would expect the pending contracts of sale number to pick up in January and February.

Market Update

2008-12-02T07:20:00.000-08:00

Sold and closed single family homes in Albany County for November '08 numbered 132 which was down from last month's total of 170 and down from November '07 which was 186. Average days on market for sold homes was 59 days down slightly from last month's 62 days. The average selling price was up to $262,793 but there was a large sale of $1.7 million that affected that average. The sale to list price ratio was up slightly to 97.3%. November year to date closed sales were 1916 vs 2329 last year, down 18%. Year to date average selling price is unchanged from last year at $236,000. And days on market and sale to list price ratio are also unchanged at 66 days and 97% respectively.

The current inventory of single family homes in Albany County stood at 1331 at the beginning of December and November pending single family sales were 113, down from 150 last month. There is currently an 11.8 month supply of homes on the market in Albany County...definitely a buyer's market. Home mortgage rates are now in the 5.5% - 6% range for 30 year fixed rate mortgages. For those looking for a buying opportunity, these next six to twelve months appear to be it.

Market Update

2008-11-03T07:19:00.000-08:00

Sold and closed single family homes in Albany County for October '08 numbered 170 which was up from 158 last month but down from 230 during October '07. Average days on market edged up to 62 from 60 last month and 59 last October with sellers realizing the same on average from last month at 96.9% of their asking price. The average selling price dropped slightly to $232,460 in October '08 from $234,795 last month. 10 month year to date figures show declines in closed home sales from 2141 last year to 1757 through October 31 of this year. Average days on market, average selling price and average sale price to list price ratio are all off slightly from the same period last year...this years numbers are 67 (vs. 66) days on market, $234,795 (vs. $236,550) average sale price, and 97.2% (vs. 97.5%) sale to list price ratio.

The current inventory of single family homes for sale as of November 3 was 1377, a slight decline from last month. However with 150 pending contracts written in October, the single family inventory of homes for sale is now at a 9 month supply. Home mortgage rates are in the mid 6% range for 30 year fixed mortgages.

Market Update

2008-10-02T07:15:00.000-07:00

Sold and closed homes in Albany County for September '08 numbered 158 which was down from 202 in September '07. Average days on market remained the same at 60 and sellers were realizing on average the same in September '08 as in September '07...96.4%. The average sale price was significantly higher at $256,000 vs. $219,000. It appears more higher priced homes sold last month. The 3rd quarter year to date numbers show an 18% decline in the number of homes sold and closed from 1910 through September 30, '07 to 1561 for the same period this year. Days on market (68) and the percentage of asking price sellers were realizing (97.2%) stayed the same from 3rd quarter '07 to 3rd quarter '08. Average sale price slipped 1% from $238,833 in "07 to $235,483 this year.

The current inventory level in Albany County dropped slightly from a 7.3 month supply of homes on the market last month to a 6.7 month supply this month. There are currently 1393 homes on the market vs. 209 that went pending in September '08. Home mortgage rates continue to hold in the low 6% range and underwriting criteria remain strict.

Market Update

2008-09-03T07:14:00.000-07:00

Sold and closed homes in Albany County for August '08 were 210 down from 256 last August. Average days on market remained about the same at 60 this August vs. 62 last August and sellers were averaging 97.1% of their asking price this August vs. 97.5% last August. Year to date closed sales in Albany County through August 31 were down 20% from the same period in '07, 1367 vs. 1708. Days on market for August 31 year to date were 69 days this year vs. 68 days last year. The sale to list price ratio fell from 97.4% this year compared to 97.8% last year. Average selling prices have fallen about 3% from $241,000 in '07 to $233,000 this year to date.

With regard to current inventory levels in Albany County as of September 1, 2008 we have a 7.3 month supply of homes on the market (1368 active listings vs. 187 pending contracts in August). If inventory of available homes holds for another month or two at this level we will be in a buyer's market. Home mortgage interest rates continue to hold in the 6.25 to 6.5% range for 30 year fixed rate mortgages. Underwriting criteria have become more stringent and buyers must be carefully qualified as underwriting criteria are constantly changing.

H.R. 3221 is Signed into Law

2008-08-04T07:13:00.000-07:00

On July 30, the President signed into law the "Housing and Economic Recovery Act of 2008". While there are a number of provisions aimed at reducing the risk of foreclosure for individuals and various reforms affecting the FHA program and Freddie Mac and Fannie Mae, there is one provision that may be significant to home buyers. "Qualified" home purchases during the period April 8,2008 and June 30, 2009 will allow the purchaser to claim a $7500 tax "credit" on their federal tax return. The "credit" is repayable over 15 years, in effect making it an interest free loan from the federal government.

Annual Real Estate Conference

2008-08-04T07:11:00.000-07:00

Fraida and Tony just returned last week from the annual Star Power real estate conference in Orlando which was attended by 1200 of the top 1% of realtors in the U. S. and Canada. Attending this conference for each of the past 10 years has enabled them to stay at the cutting edge of the real estate industry as they compare notes with some of the top performing realtors in North America. Many markets around the U. S. are adjusting from the highs achieved during the 2002 - 2005 period. The markets that had the greatest price gains are now having the greatest price reductions as the supply of homes for sale are well in excess of the current demand for homes in most markets (although not all, Charlotte NC to name just one). Short sales are becoming common in some markets as sellers and lenders work together to get homes sold and closed. Seller's are generally faced with the the reality that today they are in both a "beauty contest" and a "price war", that is, they have to have the best looking house with the best price among the competition in their price range.

Market Update

2008-08-04T07:10:00.000-07:00

July '08 showed 65 fewer homes sales closed than the previous July in Albany County (191 vs. 256) and down 7 from last month (191 in July '08 vs.198 in July '07. The average price increased from $251,000 in July '07 to $256,000 this past July but average days on the market increased from 52 last year to 60 this year. The sale to list price ratio was unchanged at 98%. At the beginning of this month of August there were 1363 single family homes on the market in Albany County. Pending contracts in last month (July) were 172 (vs. 225 last month) which indicates a 7.9 month supply of homes on the market. This is up from last month when there was a 5.9 month supply of homes. The market velocity (the rate at which homes are selling) has slowed some this month resulting in the 2 month increase in the supply of homes. A six month supply of homes is generally considered to be market that is in balance (neither a buyer's or seller's market). When the supply of homes exceeds six months for several months in a row then it is considered to be a buyer's market. Interest rates are still in the mid 6% range, which is still historically low although lenders underwriting criteria have generally tightened as a result of the sub-prime credit problem.

Market Update

2008-06-03T07:08:00.000-07:00

June '08 showed 96 fewer home sales closed than the previous June in Albany County (198 vs. 294) but up from 146 last month. The average sale price fell form $248,000 to $235,000 and average days on the market increased from 62 to 67. The sale to list price ratio declined slightly from 97.8% to 97.5%. The first half numbers show 908 Albany County homes sold and closed this year vs. 1193 during the first half of last year. The average selling price was down slightly during this period from $233,000 last year to $230,000 this year. Average days on market are the same at 72 and the sale to list price ratio is off slightly from 97.7% to 97.2%. Pending Albany County contracts in June '08 (signed purchase contracts) numbered 225 against an inventory of 1338 homes resulting in a 5.9 month supply of homes. This is down slightly from May where we had a 6.4 month supply of homes on the market. Albany County does not have the excessive inventory many other areas of the country have at this time. Thirty year fixed mortgage rates for excellent credit borrowers are currently in the 6.25 to 6.5% range. Jumbo loans run about 1/2% higher.

So far this year, Fraida Varah Real Estate Group seller's are averaging 1% more in selling price and selling their home 1 month sooner than the average Albany County home seller.

Market Update

2008-06-02T07:07:00.000-07:00

May '08 showed 75 fewer home sales closed than the previous May in Albany County (146 vs. 221). The average price increased from $224,000 to $238,000 but the average days on market increased from 60 to 82. The average sale to list price ratio also declined from 98.4% to 96.8%. June's numbers will likely be better as indicated in the pending contracts number in the previous post below.

Market Update

2008-05-28T06:58:00.000-07:00

Preliminary numbers for May indicate that there are currently 1275 active single family homes on the market in Albany County and they have been on the market an average of 126 days. So far there are 200 single family homes that went under contract so far this month and they have been on the market an average of 63 days. Average sale price so far this month has been $250,000.

April sales results for single family homes in Albany County showed that the number of houses sold (closed) in April declined from 184 (April ' 07) to 160. Both the average and median sales prices also declined. The average sales price was $225,000 for this past April compared to $237,000 for April ' 07. The sales price to list price ratio also declined slightly compared to last April from 97.1% to 96.9%. However, the house that sold sold a little faster as the average days on market also decreased from 84 to 66 days.

During the first quarter of 2008, both the average and median single family house sale prices in Albany County held at the same level as the first quarter in 2007. The average selling price during the first quarter of this year was $230,000 in ' 08 compared to $228,000 for the first quarter of ' 07. The sale price to list price ratio dropped slightly during the first quarter of ' 08 from 97.4% to 97% but the average days on market also dropped from 80 to 75. Even though the number of closed sales during the first quarter dropped from 494 in ' 07 to 367 this year, the number of homes on the market this year compared to last has also dropped resulting in stable sales prices. Mortgage rates continued to be in the 6% range for thirty year fixed mortgages.

2007 Market Summary

2008-02-11T09:57:00.000-08:00

With all the negative media coverage of the national real estate market, it is important to keep in mind that real estate market conditions are local in nature and that the national numbers are aggregates of hundreds of markets across the country. The national and local numbers that are reported are never put in context so let’s do that now for the local Albany County Market.

The number of closed residential sales in Albany County in 2007 was 2476, down 5% from 2006. The average selling price in 2007 was $236,459, up about 4% over 2006. Now let’s put these numbers in perspective. The average number of closed residential sales each year in Albany County since 1998 is 2531 . Closed residential sales during this period have ranged from a low of 2259 in 1998 to a high of 2799 in 2004. Average Albany County sale prices have increased from $132,735 in 1998 to $236,459 in 2007, that is an increase of 78% over the last 10 years or an average increase of 7.8% per year. The number of Albany county residential listings during the past 10 years has ranged from 3,022 in 2003 to 3,850 in 2007, averaging 3504 per year during that time. During the last 10 years, 30 year fixed mortgage rates have ranged from 7% to 5.5%, hitting a high of 8.5% in 2000. Rates during this period were significantly below the rates experienced during the 1980’s and 1990’s. The current 30 year fixed mortgage rate is now below 5.5%. The last time they were at this point was August of 2003 which was the first time fixed rates were below 6% in over 50 years.

The bottom line is that the Albany County market is a very stable real estate market and with interest rates currently at historic lows it is a good time to be buying or selling a home in Albany County. There is currently a window of opportunity for buyers. These low mortgage rates cannot be expected to remain at this level for more than the next 6-12 months.