My New Blog

With 2010 nearly over, I cannot help but to think ahead of what 2011 may bring in the real estate world....

 With so many dymanics at play; unemployment in the Capital District being the highest it has been in years tempered with new industries coming to the area ( Global Foundries, Matheson Gas, Sematech to name a few) , one can only guess what the crystal ball will say.

One thing for sure is that despite the "gloom and doom" of the market pundits, Albany had a good year in real estate. The federal tax credit surely helped sales as it was intended and the low interest rates kept people interested even after the credit expired. Granted, the tax credit did create a "vacuum" of sorts by displacing fall buyers into the spring market, but sales are sales!

The market is truly a "buyers market" and I expect it to stay that way for 2011. With the inventory of homes now being at over 12 months ( up 12.5 % from last year) and closed sales down 7.8% from last year, sellers truly have to" price right" to get their home sold. However, an interesting fact is eventhough there are plenty of homes on the market; both the average sale price and median price of a sold home increased from last year:2.8% and 1.8% respectively. Also- the percentage of list price that a seller received for there home has remained stable at 92.7%. Summary: lots to choose from but those that did get sold got a higher price than last year and sellers captured more of it in their pocket!

Whats next? I see mortgage interest rates creeping up. Rates are now 5% and higher from a low of upper 3% a few months ago. These rates are still ridiculously low from years past. But, just a 1/2% increase in interest rate tacks on $31/month on a $100K loan. If rates go up, buyers can afford less of a home and will shop in a lower price range or will be offering less for yours. Check out this article from bankrate:

http://www.bankrate.com/finance/rate-forecast/2011-mortgage-rates-1.aspx?ec_id=brmint_newsalert_20110110  

If you are a buyer and are secure with your job- buy now. If you are a seller, price it right, prepare the home properly and it will have the best chance of selling even in "this market".

For a summary of the market stats: click here

Questions?, drop me an email or call me at 518-366-2856