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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.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

Get the facts on New York’s proposals to require electrification of homes across the state

Gov. Kathy Hochul and the state Legislature are considering legislation to prohibit new and existing fossil fuel hookups and systems in homes across the state. Get more information on New York State’s proposals to reduce carbon emissions through the electrification of residential and commercial buildings at NYSAR’s Electrification website. Estimated up-front costs for homeowners to retrofit their home to be all-electric could range from $12,000 – $50,000. To sign up to receive future alerts and updates, click here.

Home sales take a steep drop to begin 2023

Albany, NY – January 21, 2023 – Homes sales dropped across the Empire State to start 2023 to the lowest point since the beginning of the COVID-19 pandemic, according to the housing report released today by the New York State Association of REALTORS®.

Closed sales fell 34.3 percent from 11,300 sales in January 2022 to just 7,420 last month. This marks the lowest number of sales in a month since May 2020. Pending sales were also down, dropping 11.8 percent from 8,688 in January 2022 to 7,663 in January 2023. New listings decreased from 10,984 homes in January 2022 to 9,743 listings last month, representing an 11.3 percent decline.

The median sales price of homes dropped 2.6 percent in year-over-year comparisons from $390,000 last January to $379,950 in January 2023. This is the 2nd consecutive month median sales prices have fallen.

Inventory of homes for sale fell once more to only 30,944 units available in January 2023. This marks a 7.2 percent drop from the 33,348 units available in January 2022. This is the 39th consecutive month that the housing inventory has fallen in year-over-year comparisons.

January did bring welcome news for home buyers as the average monthly interest rate on a 30-year fixed-rate mortgage dipped slightly from 6.36 percent in December 2022 to 6.27 percent in January, according to Freddie Mac.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

NYSAR Legislative Agenda

At our recent Mid-Winter Business Meetings, NYSAR’s Legislative Steering Committee approved its 2023 Legislative Advocacy Agenda, including support of additional measures and incentives to promote and increase homeownership, particularly for first-time homebuyers, a technical amendment to remove restrictions on the state’s telemarketing restrictions during states of emergency, and increased fair housing measures to combat discrimination in cooperative housing. NYSAR’s legislative agenda also includes opposition to proposals imposing “good cause” eviction standards in rental housing, prohibit landlords from collecting broker fees from tenants, and a requirement that all new residential and commercial construction be all electric beginning December 2025 along with a prohibition on the installation of fossil fuel space and water heating equipment in existing residential and multi-family buildings beginning in 2030. You can find a complete legislative agenda here, which will be posted on NYSAR’s website at a later date.

Center for REALTOR® Financial Wellness Tax Summit Virtual Series Every Wednesday in February

REALTORS® are facing a long list of tax changes for the 2022 filing year. Reduce your stress this tax season by attending the Center for REALTOR® Financial Wellness Tax Summit four-part, virtual series every Wednesday in February from 12-1 p.m. EST. All four sessions for just $50 for members.

Topics include:

Tax Basics and QBI
Wednesday, February 1

Tax Trouble – Laws, Rules & Decisions
Wednesday, February 8

Second Home & Investment Property Tax Tips
Wednesday, February 15

Lower Your 2022 Tax Bill with This Unique Wealth Building Strategy
Wednesday, February 22

In these one-hour webinars, you will gain actionable guidance from experts, receive post-session materials and obtain a certificate of completion at the conclusion of the event. Sessions can’t be sold separately and will be recorded for review. Set yourself up for success come tax time and as you plan for the future.

Register now: www.nar.realtor/cffw/live/?cid=em_Tax-Sum-33

View the January-February digital edition of New York State REALTOR® Magazine

Learn more about our 2023 Leadership Team, take a look at what industry insiders, your peers and national experts feel about the 2023 housing market and get a legislative look ahead – all in the January-February edition of NYS REALTOR® magazine, here!

Join us for the 2023 “Opportunity Awaits” Mid-Winter Business Meetings

“Opportunity Awaits” at the NYSAR 2023 Mid-Winter Business Meetings! In-person meetings, including the NYSAR Board of Directors meeting, will be held February 5-9, 2023 at the Crowne Plaza Albany – The Desmond Hotel in Albany, NY. Learn more!

New York housing market continues to slow down to close 2022

Albany, NY – January 20, 2023 – Low inventory and decreasing home sales were indicators of a near perfect storm for a slowing market to close out 2022 across the Empire State, according to the housing report released today by the New York State Association of REALTORS®.

Closed sales plummeted 31 percent from 14,138 sales in December 2021 to only 9,758 last month. Pending sales were down from 9,546 homes last December to 7,611 units in December 2022. This represents a 20.3 percent decline. New listings also dropped 25 percent – from 7,970 units in December 2021 to 5,979 homes available a month ago.

Inventory of homes for sale fell once more to only 31,222 units available in December 2022. This marks an 8.7 percent drop from the 34,212 units available in December 2021. This is the 38th consecutive month that the housing inventory has fallen in month-over-month comparisons.

The median sales price of homes dipped from $356,250 in December 2022 to $375,000 in December 2021, marking a five percent decrease in year-over-year comparisons.

December marked good news for home buyers as the average monthly interest rate on a 30-year fixed rate mortgage dipped from 6.81 percent in November 2022 to 6.36 percent in December, according to Freddie Mac.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

NYSAR launches public awareness campaign on state climate action proposals

NYSAR supports a transition to renewable energy, however, there are concerns regarding recommendations approved by the state’s Climate Action Council on December 19, which include proposals to aggressively phase out the use of natural gas, propane and oil in New York homes and businesses. Many of these recommendations will be considered by the State Legislature and/or go through the state’s regulatory process. To learn more about these proposals and their potential costs to homeowners, and to sign up to receive updates, go to our website: https://nyelectrificationfacts.com/.

Housing affordability continues to slow New York State housing market

Albany, NY – December 21, 2022 – Inventory of homes for sale fell for the 37th consecutive month in year-over-year comparisons while mortgage rates continue to be more than double compared to this time last year, according to the housing report released today by the New York State Association of REALTORS®.

Inventory of homes for sale fell 12 percent from 40,321 units in November 2021 to just 36,490 homes available last month. Months’ supply of homes remained the same in year-over-year comparisons at 3.2 months. Months’ supply refers to the number of months it would take for the current inventory of homes to sell given the current sales pace. A 6-month to 6.5-month supply is considered to be a balanced market.

According to Freddie Mac, the average monthly interest rate on a 30-year fixed rate mortgage actually dipped from 6.90 percent in October 2022 to 6.81 percent in November. Despite this, interest rates are still more than double the 3.07 percent rate from November 2021.

Closed sales dropped to just 10,101 sales in November 2022 compared to 13,120 sales in November 2021 representing a 23 percent fall in year-over-year comparisons. Pending sales were down as well, falling 22.4 percent from 11,874 units last November to 9,214 homes in November 2022. New listings also declined to 9,694 – an 18.2 percent drop from the 11,846 listings available in November 2021.

The median sales price of homes inched higher once again in November, rising from $365,000 in November 2021 to $375,000 last month, marking a 2.7 percent increase.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

2023 Education Calendar Now Available

The 2023 NYSAR Education calendar is now available for viewing. Registration for 2023 classes opens on January 2, 2023. View the 2023 calendar here.

Soaring interest rates, low inventory hamper New York State housing market

Albany, NY – November 18, 2022 – Interest rates ballooned to the highest monthly average in two decades and housing inventory declined yet again in October, slowing home sales even further across the Empire State, according to the housing report released today by the New York State Association of REALTORS®.

Inventory of homes for sale fell 12 percent from 44,379 units in October 2021 to just 39,064 homes available last month. This marks the 36th consecutive month of declining inventory available in year-over-year comparisons.

According to Freddie Mac, mortgage interest rates soared to 6.90 percent in September for the first time since January 2002, when the monthly average on a 30-year fixed rate mortgage stood at seven percent. This marks over a half percent jump from last month when the monthly average commitment rate was 6.11 percent.

Closed sales declined 22.8 percent in October from 14,379 sales in October 2021 to just 11,105 homes in October 2022. Pending sales were also down, falling 18 percent in year-over-year comparisons from 12,959 units last year to 10,626 homes in October 2022. New listings dropped from 15,596 homes in October 2021 to 12,857 listings last month. This represents a 17.6 decline from a year ago.

The median sales price of homes across New York State increased marginally in October, rising from $368,000 in October 2021 to $370,000 last month, marking a 0.5 percent increase.

Additional data is available at http://www.nysar.com/industry-resources/market-data.