New York State Home Sales Drop in First Half of 2011

New York State home sales in the first half of 2011 fell as expected from the 2010 tax credit-driven market, but showed growth compared to 2009, according to preliminary single-family sales data accumulated by the New York State Association of Realtors (NYSAR). The statewide median sales price posted gains compared to the first half of 2010. “The fact that we’ve seen growth compared to the first six months of 2009 is a positive sign,” said Duncan R. MacKenzie, New York State Association of Realtors (NYSAR) chief executive officer. “It’s difficult to get a true picture of the Empire State’s housing market today when comparing it to last year. Sales totals in early 2010 were artificially inflated by the federal homebuyer tax credit. For example, we set a monthly sales record in June 2010 as buyers scrambled to meet the original tax credit deadline.” New York Realtors sold 31,534 existing single-family homes between Jan. 1, 2011 and June 30, 2011, a decrease of 19.5 percent from the first half of 2010, but an increase of 2.4 percent from the first six months of 2009. There were 17,743 existing single family home sales in the 2011 second quarter, an increase of 28.7 percent from the 2011 first quarter total of 13,791and a 28.5 percent decline from the 2010 second quarter total of 24,820. The June 2011 sales total of 7,048 represents a 23.7 percent increase from May 2011 and a 39.4 percent decrease from June 2010. “As we look forward, we expect our housing market and economic recovery to be aided by recent legislative actions in Albany, namely the passage of the property tax cap,” said MacKenzie. “The tax cap, while providing much-needed tax relief to current homeowners, will make homeownership more affordable for first-time buyers.” The statewide median sales price for the first half of 2011 was $216,000, an increase of 5.4 percent from the same period in 2010, when the median was $205,000. The second quarter 2011 median sales price of $210,000 is down 6.7 percent from the first quarter median of $225,000, but an increase of five percent from the second quarter of 2010 ($200,000). The June 2011 median sales price $221,595, represents increases of 5.8 percent from May 2011 and 3.1 percent from June 2010.