New York State housing market sets sales record for second consecutive year
Albany –Jan. 24, 2018 – Homebuyer activity remained strong throughout 2017, driving closed sales past the 2016 record to reach 134,066 homes sold, according to the annual housing market report released today by the New York State Association of REALTORS. The statewide median sales price also grew by 5.5 percent in 2017 to reach $250,000.
“Strong buyer demand combined with still-low mortgage rates and confidence in the economy pushed the 2017 New York State housing market to a record high and fifth consecutive year of growth,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “Median sales price growth throughout the year was driven by the brisk buyer competition in the ongoing low inventory marketplace.”
“As we look ahead to 2018, continuing inventory constraints and the possible effects of federal tax reform are likely headwinds, but we do not foresee a significant dip in home sales or prices,” said MacKenzie. “We also believe that New York State government has an opportunity in 2018 to help its residents become first-time homeowners by creating a state tax incentive to save for down payment and closing costs. Communities are strengthened by higher homeownership rates and any lost revenues from the tax incentive will be more than recovered by the economic activity that follows home buying.”
There were 134,066 existing single-family homes sold in 2017, an increase of 2.4 percent from the 130,949 sold in 2016. There were 34,799 sales of existing single-family homes in the 2017 fourth quarter, an increase of 1.1 percent from the 34,414 sales in the 2016 fourth quarter. The 11,068 sales in December 2017 represented a decrease of 5.2 percent from December 2016.
The 2017 statewide annual median sales price was $250,000, up 5.5 percent from the $236,870 median in 2016. The fourth quarter 2017 median was $250,000, an increase of 6.4 percent from the fourth quarter 2016 median of $235,000. The December 2017 median sales price was $260,000, an increase of 8.3 percent from the December 2016 median of $240,000.
The months supply of inventory dropped 10.7 percent at year’s end to a 5 months supply. It stood at 5.6 months at the end of 2016. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 56,806 units at the end of 2017, a decrease of 9.5 percent compared to the end of 2016.
Additional data is available at http://www.nysar.com/industry-resources/market-data
Editor’s Note: All data is compiled from multiple listing services in the state of New York and the data now include townhomes and condominiums in addition to existing single-family homes.
The New York State Association of REALTORS is a not-for-profit trade organization representing more than 55,000 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.
-###-
Salvatore I. Prividera Jr.
Director of Communications
518-463-0300×208 office
[email protected]
RealtyTrac reports New York State has almost 20 percent fewer foreclosure filings in 2017 than previous year
In its year-end U.S. Foreclosure Market Report, which reports default notices, schedule auctions and bank repossessions, RealtyTrac Inc. reported New York State ranked 11 out of all 50 states for foreclosure filings. New York had 48,066 total foreclosure filings for 2017, down 19.08 percent from 2016. One in every 170 housing units in New York State received a foreclosure filing.
In December 2017, New York State had 4,222 total foreclosure filings, ranking 15 out of all 50 states. This is 2.25 percent below November 2017 and down 9.52 percent from December 2016. One in every 1,936 housing units in New York State received a foreclosure filing.
Nationally, foreclosure filings were reported on 676,535 properties in 2017 and 64,651 properties in December 2017.
To read the entire RealtyTrac press release, click here.
For more statistics and trends from RealtyTrac, click here.
Fannie offers ‘Healthy Housing’ incentive
Mortgage financing giant Fannie Mae launched a healthy housing reward initiative that offers financial awards to multifamily borrowers who provide services that improve the health and well-being of tenants living in affordable housing. These services could range from daycare and food access to youth and education programming and job training.
The program, dubbed Enhances Resident Services, includes a lower borrowing rate for purchasers who participate. The program is part of Fannie Mae’s Healthy Housing Rewards initiative, which aims to advance sustainable communities and the availability of affordable housing by encouraging multifamily borrowers to improve design features and services that improve residents’ health and stability.
To qualify for the program, at least 60 percent of the units in multifamily properties seeking the pricing incentive must serve residents earning 60 percent of average median income or less. The program officially started Jan. 15.
Learn more.
US land values up three percent, land sales up four percent showing strong land market
The REALTORS Land Institute and National Association of REALTORS Research Group released the results of their annual Land Markets Survey, which shows a 4-percent increase in land sales and a 3-percent increase in land prices over the previous 12 months.
Sales for all types of land rose, indicating a strong national land market. In the lead were residential land sales with an increase of 5 percent, followed by commercial land sales up by 4 percent. Analysts in the NAR Research Group and at RLI believe these markets are in the lead because of the sustained economic growth and the continued recovery of the housing construction market due to an increase in new home sales.
Learn more.
Consumers lock in mortgage rates amid growing concerns
Mortgage applications for refinancings and home purchases surged 4.1 percent last week on a seasonally adjusted basis, even as interest rates rose, according to the Mortgage Bankers Association. Volume is now up 5.6 percent over a year ago.
More consumers are growing concerned that the long run of record low rates may be coming to an end. As such, they’re rushing to lock in rates before any more upticks.
Applications to purchase a home increased 3 percent last week and are now 7 percent higher than the same week a year ago. Refinance applications rose 4 percent last week. Typically, refinance applications drop when interest rates rise so applications diverted from normal patterns last week.
Learn more.
Employers can now add to down payments
A new program allows employers to help workers’ down payment on a home, similar to how companies contribute to a 401(k). HomeFundMe, a Fannie Mae and Freddie Mac-approved down payment crowdfunding platform, allows borrowers to crowdfund their down payment from several sources, including their employer.
Some loans may also be eligible for a lender contribution of $2 for every $1 crowdfunded, up to $2,500 or 1 percent of the purchase price. Buyers who have incomes above the average median income can receive a lender contribution of $2 for every $1 crowdfunded, up to $1,000 or 1 percent of the purchase price.
HomeFundMe loans are also eligible for a buyer or listing agent contribution of 1 percent toward the down payment. All crowdfunded money is held in escrow until settlement.
Learn more.
Survey: Most consumers want VR home tours
Home shoppers are embracing virtual reality, saying they believe the technology will make the buying and selling process simpler and quicker, according to a new Coldwell Banker survey. Sixty-two percent of the more than 3,000 respondents to the survey said they would choose a real estate agent who offers VR house tours over one who does not. Further, 77 percent said they desire to take a VR house tour before seeing a property in person.
Beyond the home-shopping experience, survey respondents also say they are excited about VR applications to help them visualize how furniture would fit into a home.
Learn more.
How much buyers put down on their home
The majority of buyers who obtained a mortgage last year made a down payment of less than 20 percent, according to the National Association of REALTORS’ 2017 Profile of Home Buyers and Sellers. The median down payment in 2017 was 10 percent.
The bulk of buyers’ down payments came from their personal savings, but a fraction also came from the sales proceeds of a previous residence or assistance from family or friends. Among first-time buyers, 61 percent made an average down payment of zero percent to 6 percent, according to the November 2017 REALTORS Confidence Index Survey.
Learn more.
SRI: Consumer home buying plans up in fourth quarter 2017
According to the latest poll by the Siena Research Institute (SRI), New York State consumer home buying plans were up 7.6 percent in the fourth quarter of 2017. Overall, New York State consumer confidence remained strong, up 2.1 points to 92.3 from the third quarter. New York’s overall consumer confidence is 3.6 points below the nation’s index of 95.9.
Buying plans were also up for consumer electronics, furniture, and major home improvements. Buying plans were down for cars/trucks.
Learn more.
DOS to begin enforcing cease and desist zones in Bronx and Queens counties
Recently, the New York State Department of State adopted regulations to establish cease and desist zones for parts of Bronx and Queens counties. The regulations that created the zones went into effect on Oct. 1, 2017 and will expire on Oct. 1, 2022.
According to the DOS, “While the zones are in effect, it will be unlawful for any licensed real estate broker or salesperson, or any other person regularly engaged in the business of buying and selling property to solicit a homeowner within the zone that has filed a notice with the DOS requesting not to receive such solicitations.” A list of homeowners that have filed such statements will be available on the department’s website for free. Those individuals wishing to purchase a hard copy of the list may do so for $10. The first cease and desist list was published on Dec. 1, 2017.
As of Dec. 1, the DOS website published a 115-page cease and desist list for Queens County and no cease and desist list for Bronx County (as there were no addresses submitted for the Bronx cease and desist zone prior to Dec. 1.) The DOS has indicated that the lists will be updated on the first of each month.
Also available on the cease and desist section of the website is a map of the cease and desist zones, FAQs, and other information related to cease and desist zones.
NYSAR highly recommends that any broker or brokerage that advertises in cease and desist zones (or zip codes that overlap into a cease and desist zone) implement a strong compliance policy including providing the current cease and desist lists monthly to associated licensees.
Sending solicitations to a homeowner that has registered with the DOS can result in monetary fines and/or the suspension or revocation of your license. The DOS has indicated it will begin enforcing the new cease and desist zones on Jan. 1, 2018.
For more information, please call NYSAR’s Legal Hotline. The Legal Hotline is a free service for NYSAR members and is available Monday-Friday from 9 a.m to 4 p.m. at 518-436-9727.
Freddie to expand affordable housing options
Mortgage financing giant Freddie Mac announced a new plan to tackle the affordable housing crisis by financing more rural and manufactured housing and preserving more affordable housing for home buyers and renters across the country. Its “Duty to Serve” plan will include increasing loan purchases in such underserved markets.
Freddie says it will team with the mortgage industry, community nonprofits, organizations, and government officials to expand its products and consumer education to provide more aid to very low, low, and moderate-income households.
Learn more.
REALTORS look forward to working with Gov. Cuomo, Legislature to create first-time homebuyer tax incentive program
Statement from New York State Association of REALTORS® President Dawn M. Carpenter
The New York State Association of REALTORS® looks forward to working with state lawmakers and Gov. Andrew Cuomo in 2018 toward the development and implementation of a first-time homebuyer tax incentive. The opportunity to further this important discussion is a result of Monday’s agreement between the Governor and the Legislature.
The agreement directs the state Housing and Community Development and Financial Services departments, as well as the State of New York Mortgage Agency, to “study opportunities for, and implications of, a tax-advantaged first-home savings program.” A report is due by June 30, 2018.
This program would be a significant step in helping New York State retain the talents and energy of families and individuals, who have been struggling to find a path to homeownership here. In 2016 New York State experienced its first population loss in a decade. A first-time homebuyer tax incentive would help New Yorkers set down roots in the Empire State instead leaving, which will build neighborhoods and provide a boost to our state’s economy.
Federal tax reform, which is expected to become law before the close of 2017, also takes a swipe at current and future homeowners in New York State. We applaud our state leaders for not letting the federal tax code bias against New York State consumers go unchecked.
REALTORS® across New York State want to thank Governor Cuomo and the bill sponsors, Senator Betty Little (R-Glens Falls) and Assemblyman Philip Ramos (D-Brentwood) for advancing this important concept. Homeownership is a cornerstone of strong communities and for many an effective way to build personal wealth. The actions by our legislative leaders and the governor have helped make a statement that New York State is committed to building quality of life through homeownership.
