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Local Real Estate Market Thaws Early – January Data Encouraging

As I do every month, I have taken the time to offer my analysis of the latest Capital Region Real Estate numbers. Although unemployment remains high at 8.3% and many are still struggling in the current economy, some leading economic indicators point to progress. My focus is on Saratoga and Albany Real Estate, but these numbers apply to the entire Capital Region.

The January numbers for pending sales climbed 21% from January of 2011. Many agree the warmer weather contributed to the increase, but so did the historically low prices and interest rates along with growing buyer confidence. Because of the increase in sales, the inventory of homes for sale is down 9.0%  from January of last year – the lowest January number in 3 years. As inventory declines the strong buyers’ market becomes more balanced.  The balanced market leads to stable homes prices. The median sale price was $174,900 for January 2012 as compared to $175,000 for January 2009 – and relatively constant for the last 3 years.

Moving forward, there is no doubt that buyers have the money and banks are willing to lend. The issue is whether buyers will have the confidence. Over the coming months, the unemployment rate and stock market will be important indicators of where buyers will go. Favorable numbers will  encourage buyers to make a move – signaling the worst is behind us. However, any retreat in job growth or the stock market could chill buyers’ growing confidence.

As always if you’re looking at Saratoga or Albany real estate or just curious to see Saratoga and Albany homes for sale, search our customized page for all of the Saratoga and Albany homes for sale. And don’t hesitate to contact us if you have any questions.