New York Realtors Report Higher Demands

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

New York Real Estate Agents report higher demand, prices

By Amy L. Ashbridge
Staff Writer

Home prices and sales are booming in the area, local real-estate agents said, although increases aren’t as high as the state average.

"I’m seeing a tremendous amount of growth," said Carol Chesser, owner of Century 21 Chesser Realty. "I think Oneonta is growing."

The reason for the growth is simple, Chesser said.

"Low interest rates, low inventory and high demand," she said. "That’s it in a nutshell."

Chesser said she estimated the rise in prices between 2002 and 2004 at about 20 to 25 percent in Otsego County.

According to the New York State Association of Realtors, the median price for a single-family home in Otsego County increased 22.5 percent over the two years.

A single-family home cost about $76,500 in 2002, the association’s monthly survey said. In 2004, that median price was $93,750.

The state average increase was 36.9 percent, according to the survey.

"I would think we should be very happy with 20 percent," Chesser said.

She said she was surprised to hear that Otsego County had smaller growth than the rest of the state.

"It doesn’t reflect what’s happening in Delhi, and it certainly doesn’t reflect what’s happening east of Delhi," Pucci said Monday. "Prices are much, much higher."

According to the association’s numbers, the median sale price in Delaware County increased 21.9 percent from 2002 to 2004.

But those numbers, Pucci said, are based on information the association receives from multiple-listing services.

"Most of us here in this part of the county are not multiple-listing service members," he said.

Home prices have probably increased between 30 and 40 percent over the past several years, said Dan Bellotti, a real-estate agent with Delaware County Real Estate in Stamford.

"After 9/11 happened, the prices started increasing," Bellotti said Wednesday.

Prices have leveled in the past six months, Bellotti said.

"Things are still much better than 2001," he said.

Because there isn’t necessarily a typical single-family home in Delaware County, Bellotti said, it can be difficult to define a median price for the area.

"We have such a diversity of homes here," Bellotti said. "We go from little cottages in the woods to five-bedroom Victorians."

Delaware County’s popularity and home prices are largely affected by the area’s closeness to New York City.

"The city is driving the prices up here," Bellotti said.

Pucci said a number of homes in the county are second homes for people who live downstate.

The increase in home sale prices over the years means different things to different people.

First-time homeowners in Delaware County compete against homeowners from New York City who are looking for a second property, Bellotti said.

"They’re trying to compete against big-wage people," he said.

It can be hard to find a home that costs less than $100,000, he said.

Although the association’s numbers put the median home price in Delaware County at $79,250, Pucci said he knew of single-family homes selling for about $170,000.

"They’re just not around anymore," Bellotti said of lower-priced homes. "If you can find something under $100,000, you’re doing very good."

For sellers, it means getting top-dollar for a home and having a choice of bids.

"You’re seeing houses go for above full-price," Chesser said. "It’s very common now to have a bidding war."

People who are looking to downsize also benefit from the market, she said.

She used the example of a couple looking to retire that don’t necessarily need a large home anymore.

Low interest rates have encouraged more people to buy homes for the first time, Chesser said.

"When you have lower interest rates, affordability is higher," she said.

More people younger than 30 are looking seriously at homeownership, Chesser said.

"We have younger kids jumping in instead of renting," she said. "They want the American dream of owning a home."