Jan 27, 2025
The New York real estate market remains dynamic and competitive in 2024, with steadily rising home prices, growing inventory, and evolving market dynamics influenced by recent regulatory changes. Whether buying or selling, understanding the current landscape is key to making informed decisions. Here’s an overview of the trends shaping New York’s housing market.
The median home sale price is $561,600, reflecting a 6.3% year-over-year increase. Homes typically spend just 29 days on the market, a sign of strong demand. However, the number of homes sold decreased slightly by 3.3% year-over-year in July, with 11,908 homes sold compared to 11,528 in the previous year. Despite this dip, the market remains competitive, with an average sale-to-list price ratio of 102.9%.
Housing inventory is expanding, with 50,165 homes for sale, marking a 2.6% year-over-year increase. The average months of home supply remain at three, which indicates a seller’s market. This inventory growth offers buyers more options and contributes to a more balanced market.
A significant recent development is the National Association of Realtors (NAR) settlement, which removed the obligation for sellers to compensate buyers’ agents. This change is expected to reduce selling prices and improve affordability for buyers. However, sellers may face increased requests for concessions or need to offer additional incentives to attract buyers.
For buyers, the growing inventory and potential price reductions present an opportunity. Mortgage rates, currently between 6.50% and 6.54%, are relatively low, providing favorable conditions for purchasing. Buyers can also negotiate for seller concessions, especially as housing demand softens.
Sellers, on the other hand, can capitalize on the current high median prices before potential market corrections. Homes are selling quickly, often within 29 days, and 48% of homes sell above their list price. However, adapting to changes brought about by the NAR settlement may involve offering concessions or compensating buyer agents to stay competitive.
The median days on market for homes is 29, down by two days compared to last year. Metro areas like Lockport and Guilderland see even faster sales, with properties selling in just 8 to 11 days. In competitive areas like Guilderland and Cicero, homes often receive multiple offers, with sale-to-list price ratios exceeding 106%. While nearly half of the homes sell above the list price, 24.1% experienced price drops in July, compared to 20.5% last year, signaling a gradual shift toward a buyer’s market.
Rental costs in New York vary, with the median rent at $3,600. This marks a slight month-over-month decrease of $25, which may encourage renters to transition into homeownership as prices and mortgage rates stabilize.
Predictions for the remainder of 2024 suggest increased buyer activity as inventory grows and inflation eases. Home prices are expected to rise in cities like Kingston and Rochester, with a projected 3.2% increase by April 2025. The construction of new homes will also increase, with 1.39 million private housing units authorized, helping to meet demand.
The recent elimination of buyer broker commissions may reduce the role of buyer agents, pushing more buyers to navigate the market independently. Sellers might need to offer concessions or fees to attract buyers, especially with growing competition from builders providing mortgage buydowns and other incentives.
Despite these changes, a market crash in New York is unlikely. The state’s strong economy, with a household income of $81,386 and a low unemployment rate of 4.3%, supports the housing market’s stability. Cities like Rochester and New York City continue to experience growth, further solidifying the market’s resilience.
While the market currently favors sellers, growing inventory and regulatory changes are gradually shifting conditions to benefit buyers. Home prices are rising slowly, and the number of homes for sale is increasing, giving buyers more choices. Whether you’re looking to buy or sell, understanding these trends will help you navigate New York’s evolving real estate landscape
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
