July 2018 NY Housing Market Report
Albany, NY – August 20, 2018 – Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present. Wages are up, but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.
New Listings were up 4.8 percent to 19,945. Pending Sales increased 4.3 percent to 12,823. Inventory shrank 4.4 percent to 72,015 units. Prices moved higher as the Median Sales Price was up 9.6 percent to $285,000. Days on Market decreased 10.0 percent to 63 days. Months Supply of Inventory was down 4.5 percent to 6.4 months.
Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1 percent in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else. With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.
Data and analysis compiled for the New York State Association of REALTORS by Showing Time Inc.
The New York State Association of REALTORS®is a not-for-profit trade organization representing more than 57,000 of New York State’s real estate professionals. The term REALTOR®is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS®. These REALTORS®are also members of the New York State Association of REALTORS®as well as their local board or association of REALTORS®.
Duncan R. MacKenzie, CEO
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