Albany Housing Market Report: Sales, Median Home Prices Down
Sales of single-family homes in the Albany housing market fell 11 percent in November compared to the same month in 2005; while the median price slipped 1 percent as the housing market continued to soften, based on data released Tuesday.
A total of 778 homes sold in November through the Multiple Listing Service in Albany, Montgomery, Rensselaer, Saratoga, Schenectady and Schoharie counties, compared with 877 in November 2005, according to the Greater Capital Association of Realtors.
The median price fell to $187,100 while the average price rose 1 percent to $213,460.
The results indicate the housing market is still active, but well below the pace and price appreciation of the past several years due in part to higher mortgage interest rates that occurred as the Federal Reserve raised rates between June 2004 and June 2006.
As of last week, the average 30-year fixed-rate mortgage in the U.S. had an interest rate of 6.13 percent, according to Freddie Mac.
From January to November 2006 a total of 9,523 homes sold through the Multiple Listing Service in the Albany region, a 1 percent decline from the same period in 2005.
Even with the slowdown, the GCAR said 2006 is on track to finish with the second-highest number of total sales since the trade association began tracking regional housing trends in 1988. The highest sales total on record occurred in 2005, when 10,333 homes sold through the MLS.
Because the data only includes homes sold through the MLS, other sales aren’t counted, such as those sold directly by owners or for a nominal price between family members. Therefore, home loan activity in the area could be even greater than shown here.
The year-to-date average and median sales prices of homes sold through the MLS have risen 5 percent and 4 percent, respectively, far off the double-digit rates of appreciation from 2003 to 2005.
“Our projections at the beginning of 2006 were for sales to be down by perhaps 5 percent from 2005 levels so we’re happy to report that housing continues to be transferred at a rate exceeding our expectations,” said James Ader, chief executive officer of GCAR. “And while we looked for appreciation in the 6 percent to 8 percent range, we cannot be disappointed in what we have experienced especially in light of the national housing picture.”