The local real estate market is “insane,” says local realtor Julie Snyder of Howard Hanna Real Estate.
“The prices are just crazy,” Ms. Snyder told Glens Falls Living.
She recently listed a 1,650-square-foot home in Moreau “in the $300,000 range” with three bedrooms and 1.5 bathrooms on a Friday. Offers started almost immediately. There were 62 showings, limited to 15 minutes each, from Friday afternoon to midday Sunday. After requesting the “best and final” offers Sunday afternoon, the sellers received 21 offers, all over asking price, and sold the house for $60,000 above asking price.
American flags line a charming Glens Falls street (…and nope! These homes aren’t for sale!) • Photo: Bri Lyons
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Jen Ball of Hunt Real Estate says “the market is sheer insanity. Every listing is a dogfight. Agents are busy if you have listings or buyers, but it’s hard for anyone who doesn’t have cash or a conventional mortgage.”
She said 95% of her sales have multiple offers and sell for more than the asking price, echoing similar comments from Ms. Snyder and Angela Cugini-Girard of Howard Hanna.
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Numbers from the Multiple Listing Service show the average sale price in Warren County is up 7% this year, compared to last year’s figures. In the first five months of 2020, the average Warren County sale price was $293,147. During the same period this year, the average sale price is $315,037.
Not only is the average price up, but the number of sales is up 45%, from 265 sold in the first five months last year to 385 sold this year through the end of May, according to MLS figures.
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“We’re in a bubble market,” Mrs. Cugini-Girard said. “You can’t sustain these numbers.” She said 40% of her buyers are from out of the area, “New Jersey, Connecticut, Pennsylvania, Massachusetts. Many of them are on two-year plans to get out of their current home, and a lot are working remotely now.
“I’ve never seen anything like this…I’ve never worked this hard in 20 years. It’s insane. It’s also a little disheartening because local, hard-working people can’t compete with these other buyers. They can’t afford the prices. I just tell them to ride the wave and wait.
“Buyers have to remain calm. You’re not going to get a deal right now, and you may not get the first or second or third house you want.”
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Ms. Snyder said some buyers are waiving inspections, and “escalator clauses” are common where buyers say they will pay a set amount more than the highest offer.
“I’m not finding a lot of buyers from the City moving up here because of COVID,” she said. “I have a lot of local clients. I have clients who sold their house last August, and they are still renting because there’s nothing out there. Sellers have to have a place to move.
“This is not a bubble. There are so many buyers, but they will eventually find houses. This has always been an area with decent prices. It’s just starting to catch up with other areas… We just need listings.”
How can someone put themselves in the best position to buy a home in this market?
“Work with an experienced agent,” Ms. Snyder said. “Be pre-approved for a loan, or pre-qualified even better. Have nothing to sell, have a good down payment, and have enough for closing costs.
“It’s a very tough market for first-time home buyers. There are a lot of cash offers. Cash is still king and always will be. Cash offers are nice. They don’t require an appraisal, which isn’t a problem because [comparable sales] are out there.
“For sellers, the house needs to be in top shape and not need a ton of work. It’s still a very strong sellers’ market, but it’s leveling out a little. More inventory is coming on the market.”
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Ms. Ball said “we’re in a wave, not a bubble. It’s a long wave. It will level itself out at some point. Right now, demand is so high and inventory is so low, and there are more buyers than homes for sale. And if you see something on the market for two weeks or more, it’s likely overpriced or needs serious work.”
Her advice for potential buyers is to “get qualified for a conventional mortgage, have a fair amount for your down payment, be available to see the house when it’s available, and go heavy and go strong. Do not hesitate to make an offer.”
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Mrs. Cugini-Girard's advice?
“Try to go conventional financing,” she said. “The buyer has more skin in the game, and the appraisal process is less stringent.”
LAKEFRONT PROPERTY REMAINS HOT, TOO
Lakefront property continues to sell, with the pace quickening as the pandemic eases.
“The market is very strong,” said Dan Davies of Davies-Davies & Associates. “There’s still a lack of inventory, but I do think inventory is going to come on here soon. There’s still a lot of pent-up demand.”
Valerie Erceg of Davies-Davies said the majority of her customers are from New Jersey, Westchester and New York City, and almost all of her sales come with multiple offers and sell above asking price.
“Inventory is at historically low levels,” she said.
Mr. Davies said demand on Lake George is up “across the board. There is tremendous rental demand, tremendous demand for homes. The lake is going to be the busiest it has ever been by far. If you talk to any hotel or motel owners, they will tell you the same thing. The issue is, can we accommodate all of the visitors.”
