Albany Housing Market Report: Median Prices Rise, Sales Slow

Sales of new and existing homes fell 1 percent in January in the Albany housing market, as the real estate market continued to soften, according to figures released Monday by the Greater Capital Association of Realtors.

There were 576 closed sales in the 11-county region covered by GCAR, compared with 581 in January 2006.

Sale prices began climbing again, however, with the average price going up 2 percent, to $220,614, and the median price rising 6 percent, to $190,000. Such bumps could explain a drop in New York mortgage activity last month.

“The market has certainly cooled from the rather hectic years of 2004, 2005 and 2006, but it is still a strong market,” said GCAR President Douglas Engles.

GCAR Chief Executive Officer James Ader said there are indications the market has reached “the bottom of its downward curve” and there are signs activity will build slowly for the rest of the year. For instance, the number of contracts of sale in January rose 9 percent, to 782. That compares with levels of 1 percent to 5 percent in January from 2003 to 2006.

It typically takes about 90 days to close a deal after a contract is signed and the home loan paperwork is in order.

“It’s an indication that maybe two or three months down the line we’re going to see the slow sales figures turn around,” Ader said.

Nonetheless, GCAR said the region could end the year with fewer home sales than 2006, when a total of 10,387 homes were sold, a 1 percent decline from 2005.

“Maybe we expect that because that’s what we hear from the National Association of Realtors,” Ader said. “I hope we’re wrong with that.”

The aim, of course, is for demand for mortgages to pick up along with housing prices. As long as future owners plan on remaining in their new residence for more than a few years, there’s a good chance they’ll recoup their investment - at least - by time they sell.