The residential real estate market is “on the move” according to Tom Van Aernem (standing) and Howard Denison of Van Aernem Realty & Associates of Hudson Falls.
By Susan E. Campbell
A report from The New York State Association of Realtors (NYSAR) released September 19th confirmed that the state of real estate in New York is on an upward trajectory in nearly every market segment.
“Especially in mid-priced single family homes do we see the market here on the move,” said Tom VanAernem of VanAernem Realty and Associates in Hudson Falls.
The New York State housing market sales reached a 26-month high during the month of August, based on sales of single-family homes, condominiums and townhouses, according to NYSAR. Transactions increased eight percent from July and nearly four percent compared to August 2011.
The report stated that August is “a typically busy month in the seasonal market,” quoting NYSAR chief executive office Duncan R. MacKenzie. However, other positive signs year-to-date could be found in the steady monthly growth in closed sales (up 6.8 percent) and pending sales (up 15.7 percent), as well as stability in the median sales price ($225,000). In the communities of Washington and Warren Counties where VanAernem lists homes, prices are slightly lower that the median selling price quoted in the report.
“The trend here is that three-bedroom houses priced at the $150,000 to $175,000 range are more active,” said VanAernem. “That would equate to a $200,000 home in Saratoga county.”
VanAernem believes strongly that buyers are getting good value for their money in the North Country.
“People have a tendency to say taxes are higher in Washington County,” he said. “When they buy here, they find taxes are higher for an equivalent home that they would pay 10 or 15 percent more for across the river. So that is the choice a buyer makes.”
Said MacKenzie in NYSAR’s state-wide report, “We continue to see the market moving toward a balance between buyers and sellers as inventory declines due to a decrease in new listings and increasing sales.”
VanAernem agrees that a depleted inventory, along with low mortgage rates, has contributed to the overall health of the market for existing homes. His firm does not sell much new construction.
“There is an axiom that when interest rates are low, material costs for brand new homes are high,” he said. “There is more value for the average buyer in a home that is already built and landscaped and costs 10 or 20 percent less.”
With low rates and plenty of mortgage money to go around, there may be no time better to buy real estate, VanAernem said.
“A few years ago banks were stretching the limits. But if you work hard to get good credit, mortgage money is readily available,” he said.
Eventually rates will creep back up, according to VanAernem. “But we won’t see these low rates again for a long, long time, if ever.”
As population growth travels up the Northway, more and more apartment complexes and multi-family homes are being built around Glens Falls and Kingsbury and other communities, which VanAernem said are filling up right away.
Rents are going higher and higher, too, thanks to the simple rule of supply and demand. Part of that demand for rentals is coming from prospective buyers sitting on the sidelines, still nervous to invest in a home after what the market experienced in recent years.
“Someone paying 750 or 800 dollars a month for rent could turn that money into a $100,000 mortgage,” he said. “But people don’t want to make a mistake or buy an overpriced home.”
Now more than ever, price is driving the market and VanAernem said it’s best when the agent is honest with the seller about expectations.
“A client may be asking, ‘Why isn’t our house selling,’ while price is the whole story today,” VanAernem said. “A five percent decrease in price can get you fifteen percent more qualified buyers looking at the property.”
VanAernem Realty sees a slow but steady climb ahead for real estate.
“We are very positive and excited,” said VanAernem. “We have been through the worst. We’re on our way back.”
Visit VanAernem Realty at 77 Main Street in Hudson Falls or meet the team and see their listings online at www.vanaernemrealestate.com.