TIME ON MARKET DOWN WITH TIGHTER SUPPLIES

Undoubtedly, there is a clear relationship between inventory supply and time on the market. Realtors in Albany report that as inventory has tightened, homes have been selling more quickly.

ALBANY, NY (prHWY.com) September 26, 2012 - The typical amount of time it takes to sell a home is lessening, and for traditional sellers is back in the range of normal for a balanced market, well below the peak of 2009, according to the National Association of Realtors and the Capital Region Multiple Listing Service.

The median time a home was on the market in July was 69 days, down 29.6% from July 2011. One-third of the homes purchased in July were on the market for less than a month, while one in five was on the market for at least six months.

Undoubtedly, there is a clear relationship between inventory supply and time on the market. Realtors in Albany report that as inventory has tightened, homes have been selling more quickly. This notable shortening of time on the market began this spring and has created a balance between home buyers and sellers in much of the country. Home priced correctly tend to sell quickly, while those that are not often linger on the market.

At the end of July, Albany NY realtors report there was a six month supply of homes on the market, which is 31% below a year ago when there was a 9 month supply. In these more balanced market conditions, home prices generally rise 1 to 2 percentage points above the overall rate of inflation. The current forecast is for median home prices to rise 4.5 to 5% this year and about 5% in 2013. Albany NY realtors state that this is stronger that the historic norms because of the inventory shortfall that is most pronounced in the low price ranges.

From 1987 through 2011, the typical time on the market was 6.9 weeks, while existing home sales showed an average supply of 7 months, just above the high end for a balanced market. During the peak of the housing boom in 2004 and 2005 when inventory was low, the median selling time was 4 weeks. Prices in that time frame were up and rose at an annual rate of 10%, which was higher that the 3% average growth during the period.

The Capital Region Multiple Listing Service will post the existing home sales for August on the 19th of the month and the pending home sales index will be posted on September 27. For information on market statistics in your town, contact one of our experienced real estate agents at (518) 452-3912 or cfalvey@falveygroup.com.

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Tag Words: realtors in albany

Categories: Real Estate

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518 452-3912
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