New York state home sales growth reached 15 consecutive months of growth in April, according to the New York State Association of Realtors (NYSAR) April housing report. New York sales grew 9 percent year-over-year in April, the report says, and the statewide median sales price increased 2 percent during the same period.
“The New York state housing market has been on an upward sales trajectory since February 2015, and we anticipate this trend to continue into the busy summer season,” NYSAR CEO Duncan R. MacKenzie said. “With the number of homes for sale currently low in many areas, sellers have a great opportunity under the current market conditions.”
In April, there were 8,403 closings in the state, up 8.9 percent from April 2015. Pending sales saw an increase of 15.9 percent to reach 13,354 homes on the market. The median sales price across the Empire State was $220,000 in April, up 1.9 percent since last April’s median sales price of $216,000.
Month’s supply of homes plunged 23.1 percent and is now at a healthier seven months. In April of last year, month’s supply was 9.1 months. NYSAR considers six month’s supply a balanced market, in accordance with most other housing experts.
Inventory also dropped moderately, to the benefit of sellers. The number of homes on the market fell 10.8 percent from last year, at 76,598 total active listings. Part of the total drop in homes on the market is due to fewer new listings, which fell 11.2 percent to reach 21,776.
Brooklyn price skyrockets
The median price in Kings County (Brooklyn) jumped 22.7 percent, hitting $470,000 from a previous $383,300 last April.
Brooklyn faced a 12.5 percent year-over-year dip in sales activity last month. There were 133 closings in Brooklyn in April.
New listings declined by 2.7 percent, reaching 292 homes for sale. Inventory dropped 13.3 percent, from 2,239 to 1,942 listings. Month’s supply in Brooklyn fell to a more balanced 11.4 months but still falls outside of the healthy range. Last April, month’s supply in Brooklyn was 13 months.
Closed sales in Queens down
Queens County posted similar developments and trends as Brooklyn. Median sales price increased 11.9 percent in April to reach $449,000. Queens had 526 closed sales this April, compared with 590 last April.
Queens, NY/Flickr user Christin
New listings in Queens also dropped 10.8 percent to reach 1,328. The total number of homes for sale fell 13.7 percent to reach a total of 4,835 listings. Month’s supply is now in a healthy range in Queens, falling 16.2 percent to reach 6.2 months.
Issues for first-time buyers in New York
New York has some of the highest closing costs in the nation, which creates headwinds for renters to achieve homeownership — even after putting together a down payment.
The NY First Home Campaign from NYSAR would allow individuals to save $5,000 (or $10,000 for couples) per year into a closing costs savings account. In addition to tax deduction incentives, the principal and gain on the savings would be tax free.
“New York’s Realtors are asking their legislators to support the NY First Home proposal that would create a savings account program for the purchase of a home,” Mackenzie said. “The funds would be deductible on state income taxes to provide an incentive to save.”
