1^st Half Real Estate Market Update*

Period                   1^st half 2007         1^st half 2006                           

Number of Sales            4265                     4987                    

Average Sales Price       $216,006              $205,662             

*Residential sales in Albany, Rensselaer, Schenectady and Saratoga Counties, data obtained from Capital Region Multiple Listing Service, data deemed accurate but not guaranteed.

The regional real estate market continues to evolve, as news from the mortgage industry and real estate markets in other parts of the country has become increasingly negative. The number of closed sales reported by the Capital Region Multiple Listing Service dropped by over 14% year to year in the four county area that makes up the bulk of our regional sales. Prices over that same period were actually up over 5%, but some areas are beginning to lag.

In Clifton Park, a town that led the way in appreciation over the past several years, prices in the 1^st half of 2007 dropped almost 5% over the same period last year. The average sales price of a residential property was $291,009 in 2007, compared with $305,590 for the same period in 2006. The number of sales was off almost 5%, with 296 sales reported in the 1^st half of ’07.

In the City of Cohoes, prices continued to edge up, with a gain of almost 5% to an average of 138,092 for the 1^st half of ’07. The number of sales dropped significantly however, from 109 in 2006 to 88 in 2007, a decline of almost 20%. The City of Troy mimicked Cohoes’ numbers closely, with a average price gain of almost 6%, but with the number of sales dropping over 25%. The average sales price of a residential property in Troy for the 1^st half of 2007 was $126,687.

What I’ve personally seen in the market so far this year is relative strength in sales of  homes priced around the median for the area (median in the four county area is $187,500), but weakness in the higher and lower end markets.  While the number of sales is down across the board, home sales in the $400,000 to $500,000 price range are off 14% from last year, and sales in the $50,000 to $100,000 range dropped over 37%. Homes priced from $150,000 to $250,000 dropped just 6%.    

If the number of sales continues to trend lower, I would expect prices in the area to follow suit. I also expect this trend to be short lived. Fundamentals for our area remain strong, so it's unlikely that any long term or dramatic price declines will take place, barring any unforeseen circumstances. Pleases feel free to contact me with any comments or questions regarding this report.