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Healthy Economy, Low Unemployment Fuels Strong Prices for Owners

The New York State Association of Realtors (NYSAR) released its Skinny Housing Market Report focusing on closed home sales and price data for October 2017. The report takes data from several listing systems throughout New York and highlights many key metrics to provide a clear picture of notable market changes. These metrics include new listings, pending sales, the amount of days home are on the market, average sales price, the percentage of the list price received, housing affordability, the inventory of homes for sale, and the months supply of inventory.

The report mentions the national unemployment rate registered at 4.1 percent in October this year, meaning joblessness has not been this low since December 2000. With mortgage rates consistently holding at 3.9 percent, the NYSAR believes this combination of factors helps “keep the pool of potential buyers full, even during the so-called off season of home sales.” The NYSAR also notes that historically, mortgage rates have averaged around 6 percent.

In October 2017, pending sales measured at 11,823, a 10.4 percent increase compared to the same time last year. Closed sales measured at 12,178 and increased 3.7 percent compared to October 2016, showing the market to be active according to the NYSAR.

Homes for sale were down in October compared to the same time last year, showing a 6.6 percent decrease and landing at 69,321 units. It’s worth mentioning that the NYSAR believes there is reason to remain positive even with lower inventory. “There are several signs of impending inventory recovery as sellers become more confident and builders embark upon projects designed to meet demand,” the report stated.

The median sales price last month went up compared to last year, with the average sale price being $249,900, a 9.1 percent increase from $229,000 last year. The months supply of inventory was down 9 percent compared to October 2016, which the NYSAR believes will continue to be the case next year and possibly for all of 2018. The percent of list price received at sale rose 0.5 percent, from 96.5 percent last year to 97 percent in October 2017.

To view the full report, click here.

About Author: Dean Terrell


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