On April 23rd, NYSAR released data showing that sales of existing single-family homes in New York State in March increased by 10.1% (5035 units sold) compared to February (4575), but lagged behind March 2007 – a 29% decrease compared to March of 2007 (7094).
This 10.1% increase in sales exceeds the 2.2% sales increase reported by NAR for the entire Northeast and
is much better than the 2% drop reported for the nation.
The March 2008 median selling price was $210,000 in New York State and represents a 6.7% decrease from February 2008, which was $225,000. The March 2008 median selling price is a 14.7% decrease compared to March of 2007 which had a median selling price of $246,150.
31 counties reported gains in median selling price in March 2008 compared to February 2008, while 20 posted gains compared to March 2007. This is typical for our market due to seasonal adjustments - i.e. better weather in the spring and summer for selling real estate.
When you look at history, you realize that the most recent sales boom which picked up momentum in 1998, and with the exception of a dip in 2001, continued to post annual sales growth through 2005. This is all part of the normal and historical housing cycle, as is also the recent downturn. Past downturns have been caused by recessions, years of high interest rates (1980s), S&L crisis, the energy crisis of the early 1970s, etc.
In New York State, unprecedented sales and price growth levels between 2004 to 2006 set the bar at a height that the market could not sustain. During this time, low inventory and high demand caused a number of bidding wars amongst buyers and artificially inflated prices. Now, as the market has slowed, the media is portraying the situation to be worse than it is. Current data suggests that 2008 may be very similar in sales activity, statewide, to 2000-2001, which at the time were considered “up” markets. Also, sellers who have held onto their properties for several years have still experienced the benefit of price appreciation.
According to the 2007 Profile of Home Buyers and Sellers in New York State, commissioned by NYSAR, the average homeowner has been in their home for seven years. In March 2001, the statewide median sales price was $114,000, compared to today where it is at $210,000.
New York’s economy and housing market, and more particularly our local housing market cannot be compared to California, Florida, Michigan which dominate the headlines.
The foreclosures and subprime mortgage problems have not been widespread in New York State as they have in other states. According to the RealtyTrac March foreclosure activity report, NY ranked 30th in the nation for the number of foreclosures. NAR conducted a mortgage market study and found only 9% of loans in New York State were subprime. Also, the report stated that the foreclosure rate in the state was only 1.9%.
This 10.1% increase in sales exceeds the 2.2% sales increase reported by NAR for the entire Northeast and
is much better than the 2% drop reported for the nation.The March 2008 median selling price was $210,000 in New York State and represents a 6.7% decrease from February 2008, which was $225,000. The March 2008 median selling price is a 14.7% decrease compared to March of 2007 which had a median selling price of $246,150.
31 counties reported gains in median selling price in March 2008 compared to February 2008, while 20 posted gains compared to March 2007. This is typical for our market due to seasonal adjustments - i.e. better weather in the spring and summer for selling real estate.
When you look at history, you realize that the most recent sales boom which picked up momentum in 1998, and with the exception of a dip in 2001, continued to post annual sales growth through 2005. This is all part of the normal and historical housing cycle, as is also the recent downturn. Past downturns have been caused by recessions, years of high interest rates (1980s), S&L crisis, the energy crisis of the early 1970s, etc.
In New York State, unprecedented sales and price growth levels between 2004 to 2006 set the bar at a height that the market could not sustain. During this time, low inventory and high demand caused a number of bidding wars amongst buyers and artificially inflated prices. Now, as the market has slowed, the media is portraying the situation to be worse than it is. Current data suggests that 2008 may be very similar in sales activity, statewide, to 2000-2001, which at the time were considered “up” markets. Also, sellers who have held onto their properties for several years have still experienced the benefit of price appreciation.
According to the 2007 Profile of Home Buyers and Sellers in New York State, commissioned by NYSAR, the average homeowner has been in their home for seven years. In March 2001, the statewide median sales price was $114,000, compared to today where it is at $210,000.
New York’s economy and housing market, and more particularly our local housing market cannot be compared to California, Florida, Michigan which dominate the headlines.
The foreclosures and subprime mortgage problems have not been widespread in New York State as they have in other states. According to the RealtyTrac March foreclosure activity report, NY ranked 30th in the nation for the number of foreclosures. NAR conducted a mortgage market study and found only 9% of loans in New York State were subprime. Also, the report stated that the foreclosure rate in the state was only 1.9%.
Unfortunately, the information provided above is not what you will receive from most of the mainstream media. This is why it is so important to be informed about what is going on with the economy and especially the housing market. Most buyers and sellers are gripped with fear and apprehension concerning the housing market. Most of the media is more interested in selling fear than reality about our real estate market. You, however, can calm their fears and offer them a perspective and a solution that will benefit and enrich their lives - because you’re a Realtor®.
The information provided herein is from a memo written by NYSAR President Linda J. Page (along with a few comments I've made) dated 4/23/08 regarding the New York State March Housing Market Data
No comments:
Post a Comment