Competition fuels New York housing market in August
Albany, NY – September 22, 2020 – With pending sales remaining at high levels, combined with low housing inventory, the current competitive bidding market continued in August, according to the housing report released today by the New York State Association of REALTORS®.
While adhering to COVID-19 guidance, new listings rose 17.6 percent in the Empire State, from 18,207 homes to 21,408 units in year-over-year comparisons. Pending sales jumped from 12,753 in August 2019 to 17,913 last month – a 40.5 percent increase from a year ago. Year-to-date, pending sales are still down 1.9 percent from 2019.
Housing inventory continued to be low in New York State in August. The number of homes for sale fell 20.8 percent from 66,426 units in August 2019 to 52,595 homes this year. Months supply of inventory dropped off 19.3 percent – from 5.7 months to 4.6 months – compared to the same time last year. A 6 month to 6.5 month supply is considered to be a balanced market.
Closed sales dropped from 14,079 units in August 2019 to 12,006 this year – a 14.7 percent decrease. The statewide median sales price of $309,175 in August represented a gain of 7.7 percent compared to a $287,000 median price last year at the same time.
Mortgage rates continue to fall, aiding the strong housing market. According to Freddie Mac, the monthly average on a 30-year fixed rate mortgage in August fell to 2.94 percent. The 30-year fixed rate has not been this low since Freddie Mac began tracking mortgage rates in 1971.
Editor’s Note: All data is compiled from multiple listing services in the state of New York and the data include townhomes, condominiums and existing single-family homes.