2007 Market Summary

With all the negative media coverage of the national real estate market, it is important to keep in mind that real estate market conditions are local in nature and that the national numbers are aggregates of hundreds of markets across the country. The national and local numbers that are reported are never put in context so let’s do that now for the local Albany County Market.

The number of closed residential sales in Albany County in 2007 was 2476, down 5% from 2006. The average selling price in 2007 was $236,459, up about 4% over 2006. Now let’s put these numbers in perspective. The average number of closed residential sales each year in Albany County since 1998 is 2531 . Closed residential sales during this period have ranged from a low of 2259 in 1998 to a high of 2799 in 2004. Average Albany County sale prices have increased from $132,735 in 1998 to $236,459 in 2007, that is an increase of 78% over the last 10 years or an average increase of 7.8% per year. The number of Albany county residential listings during the past 10 years has ranged from 3,022 in 2003 to 3,850 in 2007, averaging 3504 per year during that time. During the last 10 years, 30 year fixed mortgage rates have ranged from 7% to 5.5%, hitting a high of 8.5% in 2000. Rates during this period were significantly below the rates experienced during the 1980’s and 1990’s. The current 30 year fixed mortgage rate is now below 5.5%. The last time they were at this point was August of 2003 which was the first time fixed rates were below 6% in over 50 years.

The bottom line is that the Albany County market is a very stable real estate market and with interest rates currently at historic lows it is a good time to be buying or selling a home in Albany County. There is currently a window of opportunity for buyers. These low mortgage rates cannot be expected to remain at this level for more than the next 6-12 months.