Albany NY Real Estate

After my last posting about the market heating up I figured I would take a look at some market statistics. I don't like to pull my data like average  Days on market solely from my Multiple Listing service as the data is skewed in my opinion. Homes are listed, re- listed, expire, agents changed and the days on market data becomes inaccurate. To me the overall absorption rate is a number that is important. Here are the numbers based on single family homes in Albany, Saratoga, Schenectady, and Rensselaer counties. In 2007 a total of 7,934 homes were sold. In 2008 this number dropped to 6,849 which represents a 13.6% decline in the number of homes sold. Currently there are 4,593 single family homes for sale in the four counties. Assuming we sell roughly the same number of homes this year as last year this represents roughly an 8 month supply of homes on the market. I expect the number of active homes will grow in the next couple of months as well. So there you have it, despite the multiple offers and increase activity over the past several weeks we still have an 8 month supply of homes for sale. As a general rule a 6 month supply of homes is considered a balanced market. More then this and we are in a buyers market. Less then 6 months of supply and we are in a sellers market. Based on this data the statistics still favor buyers. However it the current activity keeps up I can see the market falling into balance fairly quickly. Keep in mind this is only one measure of the market. Visit us online anytime at Albany NY Real Estate for more market statistics.

Despite all the doom in gloom in the national media the local real estate market seems to be picking up significant activity. This appears to be due to somewhat warmer weather, great interest rates, the new $8000 tax credit, and sentiment that home prices are at acceptable levels.  Homes that are priced right are selling quickly. In the past 3 weeks, I have been involved with about a half dozen multiple offer situations. This may be hard to believe if you watch the national media. The key is the homes were generally all priced correctly by top agents. Overpriced homes continue to languish for months making sellers complain that the market is weak. This is generally not the case.   I continue to see agents over pricing homes.  I lost a listing to a newer agent recently that priced a home more then $30,000 above my estimate of market value. This home is going to sit until the price is reduced and the agent is going to waste everyone's time. The key in this market remains the same as it has been. Price the home correctly and the buyers are there.

I was fortunate enough to take a rare vacation recently and enjoy the warm weather in Orlando. Orlando is a great place that reportedly sees roughly 11 Million tourists each year. In my visit to local theme parks and restaurants the economy seemed to be doing very well. I experienced waits at both local restaurants and the theme parks. I had ready many, many articles on the depressed real estate market and economy and was fairly surprised at how strong local business appeared. However, my impression quickly changed when I took an early morning run through some of the local neighborhoods. Despite knowing in advance how weak the local real estate market was, I wasn't prepared for what I encountered. Home after home with foreclosure notices or vacant homes listed for sale. Curious, I called a couple of the local Realtors from the signs. Surprisingly I didn't get a call back. Know I know what is feels like to be a buyer! Apparently business is so good the Realtors don't need to return calls. Below are some of the homes where I was running. These are homes listed in the $130,000 to $160,000 range that reportedly sold for $250,000 to north of $300,000 just 2 years ago. If you are a buyer it appears you can name your price. Bottom line- Despite many foreclosures and short sales in Albany NY our market is much, much stronger then many areas of the country. You simply don't see entire neighborhoods hit like this.   Albany NY Real Estate Market

THIS HOME IS 20 MINUTES TO DISNEY AND IS CURRENTLY LISTED FOR $135,000!

It seem like almost everyday I get asked the same question- "Do you handle short sales?" or "What is a short sale" Short sales seem to be growing by leaps and bounds. In the past 2 weeks I have been involved with about a dozen short sales in one form or another and the volume of calls regarding this area is growing. Simply put, a short sale occurs when a home is sold for a price that doesn't leave enough money to pay off the mortgage. The deal is subject to "third party approval" which means basically the bank needs to agree to accept less for the home then they are owed by the seller. The bank takes a hair cut on the deal or is "shorted". The seller generally walks away with nothing but avoids foreclosure and hopefully a deficiency judgment. On the surface it sounds simple but in practice it is not. Each lender is different and most Realtors have never handled a short sale. It is critical to pick an agent that is familiar with banks practices and knows how to negotiate a short sale. Surprisingly, banks are generally much more willing to take a short sale then they were just a year or two ago. For example, I have an investor client that was recently able to negotiate a purchase for 50% of the mortgage amount owed. This was a win win for everyone involved. If you need help with a short sale or are just looking for advice be sure to ask you agent how many short sales they have been involved in or visit me online at  http://www.albanynyshortsales.com

The Albany NY housing market has remained fairly immune from the  high foreclosures rates and declining prices faced by many areas of the country. This is due to a variety of factors in my opinion including the lack of speculation seen in other markets and the fairly stable state work force. Sure I have seen homeowners that are starting to take some hits on values of high end homes no question about it. However, overall the Albany market has held up  far better then other areas of the country. In an article published on 1/7/09 by Forbes, Albany was named one of the top 25 strongest housing markets in the country.   This basically reiterates what I have been telling my clients for months To read the story click America's 25 Strongest Housing Markets by Deborah Orr 

Have questions about what is going on in the housing market? Visit me anytime at Albany New York Real Estate

I had an investor experience yesterday that I thought might serve as a good reminder to any student tenant landlords. I received a call New Year's day from a downstate investor while I was watching the  Siena Saints defeat Fairfield at the Times Union center. My investor owns about 20 units rented to SUNY and St Rose students.   Just about all of his tenants are home on break. However, one of his tenants stopped by his apartment on New Years day to find the heat off. For whatever reason, both boilers had shut off and the pipes were rapidly freezing.  A heating guy was going to be delayed at least a day. Fortunately, I was able to get one of my kerosene heaters going and  drain some of his supply lines to prevent further damage such as a cracked boiler or a basement filled with water! My investor got lucky. If the student hadn't stopped in he could have been on the hook for thousands of dollars in repair bills.

If you have student rentals be sure to check on them at least weekly during the winter break.  You may just save yourself a huge headache particularly during this cold snap.  Student housing is a favorite among thieves this time of year as well.  Have questions or need help. Call, email, or visit me online at Albany Investment Property