State Real Estate Market Outlook
Realty Market Outlook New York State Profile - Spring 2006
New York’s housing appreciation stabilized, while housing sales have slowed
For the first time since 1997, New York’s home appreciation rate of 12.6 percent in the fourth quarter 2005 was below the national average of 13 percent. After reaching a record high in the third quarter, appreciation eased in Glen Falls, but slightly increased in other parts of the Hudson Valley, Long Island, and New York City metro area.
While the state’s average house appreciation rate remained in double digits, other indicators of housing activity have eased. The inventory of unsold homes has increased between 10 percent and 20 percent in Westchester and parts of the Hudson Valley, 10 percent in Buffalo almost 30 percent in Rochester.
A slowdown in home sales and higher inventory levels could portend an easing in appreciation rates in 2006. However, in contrast to the state’s early 1990s housing downturn, recent employment growth remains firm in many areas in the state, which should support housing markets. Moreover, construction related employment has been a less significant driver to New York’s job growth during the past five years than the nation.
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