The New York State housing market is currently in a state of flux. Mortgage rates have been rising steadily in recent months, which has made it more expensive for buyers to purchase homes. In addition, the inventory of homes for sale has been shrinking, which has led to increased competition among buyers.
As of May 24, 2023, the current purchase mortgage rate for a 30-year fixed mortgage in New York State is 6.98%. This is according to Bankrate, which surveys the nation’s largest mortgage lenders. The APR, or annual percentage rate, is 7.08%. This includes fees and other costs associated with the loan.
The active listing inventory of homes for sale in New York State has been declining in recent months. As of May 24, 2023, there were 125,000 homes for sale in New York State, down from 150,000 homes for sale in January 2023. This decline in inventory has led to increased competition among buyers, as there are fewer homes to choose from.
New Construction Data
The May 17, 2023 US Census and HUD “Monthly New Residential Construction, April 2023” report provides important data on the current number of new construction residential homes for sale. According to the report, there were 1,744,000 new privately-owned housing units authorized by building permits in April 2023. This is a 5.7 percent increase from the March 2023 rate of 1,648,000 and a 10.4 percent increase from the April 2022 rate of 1,581,000. The report also showed that single-family authorizations in April 2023 were at a rate of 1,365,000; this is 0.2 percent above the revised March figure of 1,363,000 and 8.6 percent above the April 2022 rate of 1,258,000. These figures provide real estate agents with valuable insight into the current state of new construction residential homes for sale across the United States. For perspective; there are approximately 70,000 new construction homes available in our nation of over 325 million people. Link to U.S. Census/HUD Report
The Mortgage Bankers Association (MBA) released its weekly survey on May 24, 2023, which showed that mortgage applications decreased from the previous week. The survey found that the seasonally adjusted Market Composite Index, a measure of total loan application volume, decreased by 1.9 percent from the previous week. The Refinance Index also decreased by 2 percent from the previous week. According to Joel Kan, MBA’s vice president of economic and industry forecasting, “Purchase activity has been relatively flat since mid-April as potential buyers are facing affordability challenges due to rising home prices and limited inventory.” This decrease in mortgage applications is reflective of the current state of the real estate market where potential buyers are having difficulty finding affordable homes due to limited inventory and rising prices. Link to MBA Report
Despite the challenges that the New York State housing market is facing, there are still some positive signs. The economy is still growing, and there is still a strong demand for homes in New York State. Buyers who are patient and persistent will be able to find good deals on homes in the New York State housing market.