Quarter One Homes Sales Higher than Last

AMANDA MORRISON / NNY BUSINESS

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NAR releases 2016 buyers profile

Lance Evans

Lance Evans

In November, the National Association of Realtors (NAR) released the 35th edition of its survey of buyers and sellers. This yearly sampling was based on homes sold between July 2015 and June 2016 and had 5,465 responses.

The median age of all buyers was forty-four and had a gross household income of $88,500. Two-thirds were married, seventeen percent were single females, seven percent were single males, and eight percent were unmarried couples. About a third of all buyers had children at home and fourteen percent owned a second home.

This year’s survey convincingly proved once again that the two most popular resources for buyers remain the internet — 95 percent — and real estate agents — 92 percent. Despite a record high 51 percent of buyers saying they found the home they purchased online, most buyers who used the internet still ended up purchasing their home through an agent — 90 percent.

Of interest to residents in our area, nationally 2 percent of all buyers or their spouses were active duty military and 18 percent were veterans. The active duty buyer is 35 years old, most likely to buy a previously owned home, and half were first-time buyers. Fifty-seven percent rented a house or apartment immediately prior to their home purchase.

Buyers who were military veterans had an average age of 59 and 82 percent had owned previously. However, only 36 percent owned a home immediately prior to purchasing. Eighty-two percent bought a detached single-family home.

In terms of sellers, 89 percent of respondents used a real estate agent. Additionally, 85 percent indicated that they would definitely or probably use their agent again or recommend him or her to others. The typical seller is 54 years old, with a household income of $100,700, and has owned their home for 10 years.


Members of the Jefferson-Lewis and the St. Lawrence County Boards of Realtors joined nearly 20,000 colleagues, industry leaders, and real estate experts from the U.S. and abroad at the 2016 Realtors Conference & Expo in Orlando, Florida from Nov. 3 to 7.

This year’s conference theme, “Educate, Innovate, Celebrate,” encouraged Realtors to educate themselves on market trends and key real estate issues, learn about the latest technologies and innovations affecting the industry, and celebrate another year of positive growth. Realtors had the opportunity to make professional contacts from across the globe, as well as attend educational and informational sessions featuring nationally recognized presenters, trainers, and industry experts.

Among the panelists and speakers were Lawrence Yun, NAR chief economist, who shared the latest outlook for residential and commercial real estate markets; Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta; Jim Parrott, former economic adviser to President Barack Obama and senior fellow at the Urban Institute; Brian Montgomery, former Federal Housing Administration Commissioner and vice chairman of the Collingwood Group; Jonathan Smoke, chief economist at realtor.com; Howard Fineman, global editorial director at the Huffington Post; Alex Perriello, president and CEO of Realogy Franchise Group; and senior staff from the Federal Aviation Administration and National Flood Insurance Program. One of the highlights was the keynote given by retired U.S. Army Gen. Colin Powell.

Throughout the week, Realtors participated in 100-plus conference sessions, workshops, forums, and classes on a broad range of real estate issues to help prepare themselves and their businesses for 2017. This is one of the many ways Realtors raise their professionalism and skills through specialized knowledge and expertise. Tri-County attendees were Sue Brashaw, Carolyn Gaebel, Debbie Gilson, Lisa L’Huillier, Brittany Matott, Randy Raso, Sue Raso, Jennifer Stevenson, and me.

During the conference, Bill Brown, a second-generation Realtor from Oakland, Calif., was installed as the 2017 NAR President. “In 2017, Realtors will work to keep the issues affecting homeownership  —  whether it be defending the mortgage interest deduction or fighting for more affordable financing  —  a priority on our nation’s public policy agenda,” said Brown. “Realtors are here to encourage our leaders to put forward policies that put the American dream of homeownership within reach for every American whose goal is to own their own home.”

 

LANCE M. EVANS is the executive officer of the Jefferson-Lewis Board of Realtors and the St. Lawrence County Board of Realtors. Contact him at levans@nnymls.com. His column appears monthly in NNY Business.

Jefferson, St. Lawrence median home prices up last quarter, but sales figures down in Lewis County

STEPHEN SWOFFORD n WATERTOWN DAILY TIMES The house at 215 Butterfield Avenue sold above median price for the area. Incentives driven by economic development and home buyers purchasing more expensive homes increased the number of homes sold in Jefferson County and the median price in both Jefferson and St. Lawrence County last quarter.(Wolf story)

STEPHEN SWOFFORD n WATERTOWN DAILY TIMES
The house at 215 Butterfield Avenue sold above median price for the area. Incentives driven by economic development and home buyers purchasing more expensive homes increased the number of homes sold in Jefferson County and the median price in both Jefferson and St. Lawrence County last quarter.(Wolf story)

By MARCUS WOLF
MWOLF@WDT.NET

Incentives driven by economic development and home buyers purchasing more expensive homes increased the number of homes sold in Jefferson County and the median price in both Jefferson and St. Lawrence counties in the third quarter of the year, but a loss of employment opportunities in Lewis County decreased the median price and kept the number of houses sold relatively flat.

The number of houses sold in Jefferson County increased last quarter by 80 units, or 33 percent, from 246 to 326, according to the Jefferson-Lewis Board of Realtors. The median home price in Jefferson County also increased by $2,875, or 1.9 percent, from $148,625 to $151,500, and the median number of days on the market for a house increased by 30 days, or 49.2 percent, from 61 to 91.

Randy T. Raso, president of the Jefferson-Lewis Board of Realtors, said the proposed missile defense site at Fort Drum encouraged more prospective home buyers to purchase homes in the area, driving up home sales last quarter.

“A lot of folks hear things like that and their first thought is, ‘Should I invest in this area?’” Mr. Raso said. “I have worked with people overseas … who are interested in investing in the area.”

Foreclosed properties that investors purchased earlier this year were put back on the market and sold at higher prices, Mr. Raso said, raising both the number of units sold and the median price. For instance, a developer would renovate a house valued at $100,000 at the time of purchase and resell it for $30,000 to $40,000 more.

“They are buying them up as a deal and are fixing them to make more of a profit,” he said. “So that raised the median price. Not only does that help the city and the area, but it also increases the value of the home.”

Lance M. Evans, executive officer of both the Jefferson-Lewis and St. Lawrence boards, said that brokers sold more single-family, year-around homes at higher prices and waterfront summer cottages last quarter. For example, one Realtor, Mr. Evans said, sold a $999,999 cottage in Henderson.

“The bottom line is that in the north country real estate market … homes are still priced nicely and interest rates are still low,” he said.

STEPHEN SWOFFORD n WATERTOWN DAILY TIMES The house at 1028 Holcomb Street sold above median price for the area. Incentives driven by economic development and home buyers purchasing more expensive homes increased the number of homes sold in Jefferson County and the median price in both Jefferson and St. Lawrence County last quarter.(Wolf story)

STEPHEN SWOFFORD n WATERTOWN DAILY TIMES
The house at 1028 Holcomb Street sold above median price for the area. Incentives driven by economic development and home buyers purchasing more expensive homes increased the number of homes sold in Jefferson County and the median price in both Jefferson and St. Lawrence County last quarter.(Wolf story)

Compared with 2015, home sales from January to September this year increased in Jefferson County by 96 units, or 15.7 percent, from 611 to 707. The median price for homes for the nine-month period in Jefferson County, however, decreased by $27,700, or 18 percent, from $154,000 to $126,300. The median number of days on the market is also up from 2015 by 16 days, or 21 percent, from 77 to 93.

Mr. Raso said investors were less likely to purchase properties in the city of Watertown while the City Council discussed Councilman Stephen A. Jennings’s proposed rental registration and inspection law. Under its initial version proposed in August, the law would have required landlords, including ones who operated outside of Jefferson County, to register all of their properties with the city and have them inspected once every three years.

“Investors felt like they were being penalized for a few people who did not take care of their properties in the area,” Mr. Raso said. “It put a lot of folks on hold.”

In St. Lawrence County, the number of units sold last quarter decreased from the same time in 2015 by 25 units, or 11.7 percent, from 214 to 189, according to the St. Lawrence County Board of Realtors. The median price, however, increased by $12,880, or 14.2 percent, from $91,000 to $103,880, and the median number of days on the market was down last quarter by six days, or 7 percent, from 88 to 82.

Debra J. Gilson, president of the St. Lawrence Board of Realtors and a broker for County Seat Realty, said that having a low inventory in areas such as Canton and Potsdam could have caused a decrease in sales, although some areas such as Massena still have an overabundance of units on the market. While the number of units sold was slightly down, Mrs. Gilson said, waterfront property purchases drove up the median price last quarter.

“And of course, interest rates are at an all-time low,” she said.

The number of units sold from January to September this year increased from 2015 in St. Lawrence County by 15 units, or 3.2 percent, from 466 to 481. The median price increased from the same period in 2015 by $1,750, or 2 percent, from $87,250 to $89,000, and the median number of days was up by five days, or 5 percent, from 99 to 104.

Lewis County home sales remained relatively flat last quarter compared with the third quarter in 2015, decreasing by only four units, or 6.3 percent, from 64 to 60, according to the Jefferson-Lewis County Board of Realtors. The median price also decreased in Lewis County by $22,750, or 16.5 percent, from $137,750 to $115,000, and the median number of days on the market dropped by 35 days, or 31.3 percent, from 112 to 77.

The number of units sold from January to September this year increased from 2015 in Lewis County by two units, or 1.3 percent, 143 to 145. The median price for 2016, however, decreased from 2015 by $14,500, or 12.2 percent, from $119,000 to $104,500, and the median number of days on the market dropped by 34 days, or 27 percent, from 128 to 94.

When Climax Packaging, Lowville, closed in April and laid off 157 workers, Mr. Raso said that slowed the economy and caused a drop in both sales and the median price last quarter. For this year, Mr. Raso said, an overall lack of employment opportunities in the county affected the median price and number of units sold.