Sales of Freddie Mac Foreclosures and Other Homes Dip in Some NY Areas

by on Foreclosures

Sales of Freddie Mac foreclosures as well as other types of residential real estate dropped in certain areas of New York in February 2011 compared with year-ago levels. Realtors are mostly attributing the drop to the harsh winter weather experienced in most markets of the state during the month.

Housing sales in majority of the state's local markets declined for the month, with Brooklyn home foreclosures for sale and non-foreclosed properties in Albany and other key areas suffering from the cold weather and the prevalent weakness of the home market. Data from the Greater Capital Association of Realtors showed that in Albany, sales fell by 20% during the month compared with the same period of 2010.

A total of 350 foreclosed homes for sale in New York and non-foreclosed residential properties were sold in Albany in February 2011, representing a drop from the February 2010 total of 435. Sales plummeted in the four major county markets of the Greater Capital region, but both average and median prices did inch upward. Median price for homes sold during the month was up by 1% compared with one year ago to reach $185,500. Average price, on the other hand, climbed by 2% to $211,437 over the same period.

Despite the presence of REOs, Freddie Mac foreclosures and other distressed properties, home prices in most areas of the region held steady, something that realtors believe points to an improving market. According to them, buyers still have the upper hand, but sellers can expect better months ahead as the residential market slowly stabilizes. The report from the association covered 11 counties, although sales were reportedly concentrated in the four major county markets.

Among the four major markets, Saratoga posted the biggest year-over-year decline in sales of non-foreclosed and foreclosure properties for sale, with the area recording a drop of 22%. However, median prices were up by 1% to $263,800. Albany had the second biggest drop in sales at 20%, with median rates climbing to $187,800, representing a 1% improvement. Schenectady's sales went down by 12%, with median selling rates climbing by 6% to $153,000. Rensselaer, on the other hand, recorded a sales drop of 6%, with median price also dropping by 2% to $165,000.

Despite the drop in both REOs and Freddie Mac foreclosures and non-foreclosed property sales, realtors are optimistic that majority of New York's housing markets will continue their gradual improvement. They predict that sales will be better in the coming spring season.