Housing market continues to shrink
ALBANY—Home prices in Albany County, along with those across New York State, saw a notable increase in August 2024, while housing inventory continued to decline, according to a report released by the New York State Association of Realtors last week.
The median sales price of homes in Albany County rose to $348,000 in August 2024, up 7.1% from $325,000 in August 2023. This increase mirrors the statewide trend, where the median price of homes climbed from $410,000 in 2023 to $444,713 in 2024, marking the 13th consecutive month of year-over-year price increases.
Meanwhile, housing inventory in Albany County dropped 15.8% from 322 units in August 2023 to 271 in August 2024. Statewide, the inventory of homes also saw a decline of 6.5%, continuing a trend of falling inventory for the 18th consecutive month. Albany County also experienced a 19.8% decrease in closed sales, from 258 in August 2023 to 207 in August 2024, while new listings dropped by 8.9%.
Across New York, closed sales decreased by 9.1%, from 11,638 homes sold in August 2023 to 10,581 in August 2024. Pending sales fell 2.9%, with 10,097 transactions in the pipeline compared to 10,394 last year. New listings were also down 5.8%, from 13,297 in August 2023 to 12,522 in August 2024.
In addition to rising home prices and shrinking inventory, mortgage rates have also fluctuated. According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage dropped to 6.50% in August 2024, compared to 7.07% in August 2023.
The combination of rising home prices, lower inventory, and fewer closed sales reflects the continued challenges in both the local Albany County market and across New York State for prospective buyers and sellers alike.