A Market in Motion: What Buyers and Sellers Need to Know

The real estate market in the Greater Capital Region—covering Albany, Schenectady, Saratoga, and Rensselaer Counties—continues to evolve as we enter March 2025. Whether you’re planning to buy or sell a home, staying informed about market trends can help you make smarter decisions.

The latest data from the Greater Capital Association of Realtors (GCAR) shows that home prices are rising, inventory remains tight, and competition is strong. In January 2025, the region-wide median sales price climbed to $292,500—an 8.2% increase from the previous year. With fewer homes available and demand remaining high, understanding these trends is crucial for anyone navigating the market.

Let’s break down the key insights from January and what they mean for real estate activity this March.

Fewer Listings, Strong Demand: What It Means for Buyers and Sellers

January 2025 saw a slowdown in closed sales, dropping 15.5% year-over-year to 1,077 transactions. New listings also fell by 11.8%, leading to even tighter inventory. With just 1.8 months of supply available (far below the six months needed for a balanced market), sellers continue to have the upper hand.

For sellers, fewer new listings mean less competition, which can result in quicker sales and favorable prices. In fact, homes in the region sold at 96.9% of their original list price, with median days on the market holding steady at 35.

For buyers, the market remains challenging. Limited inventory means fewer choices, and competition can be fierce—especially in high-demand areas like Albany County, where 413 homes closed in January despite the regional dip. Buyers must be prepared to move quickly and make competitive offers to secure a home.

Mortgage Rates and the Seller’s Market Effect

While mortgage rates weren’t specifically highlighted in the GCAR report, broader market trends suggest they remain higher than past lows. This has led to a “lock-in effect,” where homeowners with low mortgage rates are hesitant to sell, further limiting inventory.

With only 2,154 homes available in the region as of January, buyers are facing a persistent seller’s market. Homeowners looking to sell can take advantage of this environment, as demand continues to push prices upward. However, unless mortgage rates decrease significantly or more homes come onto the market, buyers will continue to experience challenges in finding affordable options.

Home Prices on the Rise: What’s Ahead for 2025

The median sales price in the Capital Region rose 8.2% year-over-year to $292,500, with county-specific gains even higher:

• Albany County: $320,000 (up 10.3%)
• Schenectady County: $255,000 (up 8.5%)
• Rensselaer County: $260,000 (up 8.8%)

With supply struggling to meet demand, home values are expected to continue their upward trend. While Albany County saw a 5% increase in new listings in January (820 total), sales still outpaced new inventory, keeping the market competitive.

For buyers, rising prices mean adjusting budgets or exploring different areas. Sellers, on the other hand, have a strong opportunity to capitalize on increased home equity.

Luxury Market: Saratoga County Stands Out

Saratoga County remains a hotspot for luxury real estate, with its median sales price reaching $400,000 in January—an 8.1% increase from the previous year. With only 1.5 months of supply, Saratoga’s high-end market is even more competitive than the rest of the region.

Buyers interested in luxury homes must be prepared for fast-moving deals and strong competition, especially in sought-after locations like Saratoga Springs. Sellers in this segment can take advantage of low inventory and high demand to command premium prices.

Your Next Steps in the Capital Region Market

As we move through March 2025, the real estate market continues to favor sellers, with rising prices and tight inventory shaping the landscape.

• Sellers: Now is a great time to list your home, with demand strong and competition low.
• Buyers: While the market is competitive, opportunities exist—especially with expert guidance and strategic timing.

Looking to buy or sell a home in the Capital Region? Explore current listings at https://gcar.com/ or connect with Monticello Licensed Real Estate Broker at https://www.monticellonys.com/ for expert advice. Whether you’re searching for a dream home or maximizing your sale, now is the time to take action!