Realtors: Capital Region housing market flat in 2014

PHOTOGRAPHER: Peter R. Barber

This house on Sandalwood Drive in Clifton Park has a price reduction advertised Wednesday, January 28, 2015.

It’s official: Despite an active first quarter, the 2014 housing market ended with a fizzle.

Closed sales fell 2 percent across the Capital Region last year, to 9,174, according to the Greater Capital Association of Realtors. Pending sales, or the point at which buyer and seller agree to terms of a sale, increased 1 percent, to 9,486.

Despite successive years of slow but steady recovery after the housing market crash followed by a robust 2013, last year seemed to confuse both local Realtors and industry analysts, who guessed stagnant wages and a dearth of first-time homebuyers likely had something to do with the downturn.

“Our Realtors were very busy in the first four, five months of the year,” said GCAR Chief Executice Officer Laura Burns. “Then around May, when sales are supposed to be picking up, our members all of a sudden started to notice a drop-off. Here we have all this positive economic stuff going on in the Albany area, but we just didn’t get the robust year we were hoping for.”

Burns blames stagnant wages and underemployment for the sluggish market. Unemployment continued to tick down and the private sector continued to add jobs, but individuals across the region and nation continued to go without raises or worked in jobs they were overqualified for. With student loan debt rising and stagnant wages, it’s hardly a surprise renters didn’t take the leap to become homeowners, she said.

It wasn’t all bad news, though. Nationwide, median sale prices rose to their highest levels since 2007, even though they fell locally by 1 percent, to $193,640. However, local sellers received offers much closer to their listing price, with sales rising to 93 percent of the original listing price.

Realtors are predicting pent-up demand and predicted wage growth will result in an active market this year. Not only are first-time buyers expected to flood the market, but existing homeowners who have built up equity in their homes are expected to trade up. Still, Realtors are warning student loan debt and sluggish wage growth remain obstacles to a greater overall recovery.

“People are no longer underwater on their homes,” Burns said. “Homeowners see now they have equity built up and can turn around and sell their house and make money on it. Their confidence is back.”

Across most of the Capital Region, both closed sales and pending sales were down. Schenectady County, however, saw a slight increase (1 percent) in pending sales last year, from 1,385 to 1,399. Closed sales were down 4 percent, though, from 1,382 to 1,330. Median sale price was also down 1 percent, from $160,000 to $158,875.

In Saratoga County, closed sales fell 4 percent, from 2,686 to 2,579. Pending sales fell 2 percent, from 2,664 to 2,600. Median sale price fell 1 percent, from $261,500 to $258,000.

In Montgomery County, closed sales fell 4 percent, from 206 to 198. Pending sales fell 2 percent, from 215 to 210. Median sale price dropped less than 1 percent, from $98,907 to $98,825.

In Schoharie County, closed sales fell 5 percent, from 199 to 190. Pending sales fell 5 percent, from 201 to 191. Median sale price stayed the same, at $120,000.