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Low inventory, mortgage rates contribute to struggling NY housing market
Albany, NY – March 21, 2023 – With a continued lack of inventory and Interest rates starting to rise once again, closed sales dropped to their lowest point in nearly a decade, according to the housing report released today by the New York State Association of REALTORS®.
Closed sales plummeted 34.3 percent, from 9,351 sales in February 2022 to only 6,147 units last month. This marks the lowest number of closed sales in month-over-month comparisons since February 2014 when there were just 5,700 units sold. New listings were down as well, from 11,760 listings in February 2022 to 9,905 in February 2023 representing a 15.8 percent decline. Pending sales also fell 8.1 percent from 9,350 homes last year to 8,593 sales pending in February 2023.
According to Freddie Mac, interest rates escalated every week during the month of February. The monthly rate on a 30-year fixed-rate mortgage started the month at 6.09 percent but ended February at 6.50 percent.
Inventory of homes also fell in year-over-year comparisons. The 30,308 homes available in February 2023 marked an 8.2 percent decline in the 33,031 units available in February 2022. This is the 40th consecutive month that the housing inventory has fallen in year-over-year comparisons.
Median sales prices of homes dipped moderately from $400,000 in February 2022 to $375,000 just last month. This represents a decline of 6.3 percent.