Home sales in the U.S. in 2024 were at their lowest level in almost 30 years. The market Central New York saw only a slight decrease — and 2025 promises to be a stronger year for the sector
By Aaron Gifford
Surging real estate prices, high interest rates for borrowers and the skyrocketing cost of property insurance pushed homeownership out of reach for millions of Americans last year — but not necessarily in Central New York.
“The Wall Street Journal” reported that in 2024, home sales were at their lowest level in almost 30 years.
As home prices reached record highs in 2024, 30-year fixed mortgage rates fluctuated between 6% and 8%. The cost of homeowner’s insurance, meanwhile, outpaced the rate of inflation by 8.7% in four years, with the average premium costing $2,321, according to the U.S. Treasury.
The other significant change to the real estate industry is the new requirement where written agreements with buyers’ agents specifying how much they will be paid must be established ahead of time, but the compensation rates cannot be disclosed on the Multiple Listing Service.
Redfin, a national real estate company, reported that the average commission for buyers’ agents this year is about 2.37%, a very slight decrease since the regulation took effect in August. The company also notes about half of U.S. real estate agents are reporting that homebuyers and sellers have engaged in more commission negotiations in the past six months.
Increasing energy and utility costs, which in many states have exceeded the rate of inflation in the past four years, have also had a negative impact on the real estate market. The average household paid $2,700 last year for electricity, gas and water, according to Move.org. That figure doesn’t include estimates for internet, phone and other services like trash pickup.
The National Association of Realtors reported that single-family home sales declined about 5% in the past year. This trend continues into this year, as sales across the country decreased nearly 5% between December and January.
“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” NAR chief economist Lawrence Yun said in a Feb. 21 news release. “When combined with elevated home prices, housing affordability remains a major challenge.”
Slightly decrease in CNY
Central New York reported only a slight decrease in home sales, 2.3%, between 2023 and 2024. Average sale prices here held firm and inventory began increasing again.
The Greater Syracuse Association of Realtors reported a 10% gain in the median sale price of homes in 2024 compared to the previous year.
All told, there were 7,896 home sales last year between Onondaga, Cayuga, Oswego, Madison, Oneida and Seneca counties, according to GSAR.
Inventory at the end of the year was also up to 1,192 available homes, an increase of 21.4% from December 2023.
“Nearly 7,900 Central New Yorkers received the keys to their new homes last year and planted their roots in communities throughout our region,” said Jennie Chapin, president of the Central New York Information Service. “The American dream of homeownership is alive and well in Central New York. The life circumstances that lead people to buy and sell homes don’t change in the face of external factors; many of our neighbors were undeterred by the combined headwinds of rising mortgage rates and fewer homes from which to choose.”
“As Central New York’s Realtors look ahead to next year, we anticipate housing increasing activity as consumers adjust to the current mortgage rates and the Micron project progresses,” said Reginia Tuttle, GSAR CEO.
Tuttle anticipates that home sales will increase in the months ahead as work begins on the massive Micron computer chip plant in Clay, Onondaga County.
“The inventory of homes for sale was trending upward in the second half of the year, which is encouraging for the year ahead,” she said. “We also believe that mortgage rates will moderate as we move into 2025.”
Galloway Realty in Oswego finished second of all Century 21 offices in New York state with 367 sales last year.
Bill Galloway said business improved from 2023 because inventory increased and after an extended post-pandemic period of sluggishness of real estate, activity picked up again in a big way.
Most of the buyers were somewhat local — younger families looking for something bigger or retirees interested in downsizing, said Galloway, whose family just celebrated its 60th year in the local real estate business.
“There was a little shellshock for real estate and for a while, there was nowhere to move to,” he said. “Inventory is picking up and people are moving around again.”
Galloway anticipates 2025 will be a solid year for the Upstate New York real estate market.
His website lists properties ranging from manufactured homes in Volney for $39,900 to a ranch-style house in DeWitt for $225,000 to a four-bedroom luxury home with a hot tub and sauna in the town of Oswego with a view of Lake Ontario.
“We are still one of the most affordable markets in the country,” Galloway said.
Nationally, the median home sale price is $396,900, an increase of nearly 5% in the past year, according to NAR. By region, that figure is $475,400 in the Northeast, $290,400 in the Midwest, $356,300 in the South and $614,200 in the West.
3,127 properties listed
In February, 3,127 properties were listed in Central New York, 1,054 of which were new listings. The average sale price for that month was $258,382.
According to the CNY Realtor website, the average number of days properties remained on the market was 35.1.
Through Feb. 18, the city of Syracuse led all Central New York communities in the total number of sales so far this year, with 78.
However, that’s still a significant decrease compared to the same period in 2024, when 124 homes were sold in Syracuse.
By county, Onondaga reported 382 home sales through Feb. 18, compared to 471 for the same period a year prior. But the average price this year was $298,400, compared to $275,300 in February 2024.
The number of home sales in Oswego County only decreased by two during that comparison period, to 94 from 96 in 2024, while the average sale price improved to $208,100 from $184,400.
Similarly, 45 home sales were reported in Cayuga County, only one less than for the same period last year. The average sale price increased from $244,400 to $251,000.
Madison County reported an increase, from 54 sales during the first seven weeks in 2024 to 59 this year, while the average price went up from $254,100 to $288,400.
As usual, the highest-priced homes were sold in Skaneateles, with the average price at $972,500, up from $883,600 last year, according to the CNY Realtor website.
“January is typically a slower time of year for home sales in our area due to our active winter weather and this year was no exception,” GSAR president David Manzano Sr. said in a Feb. 23 news release.
“While homes are bought and sold throughout the year, buyers and sellers tend to hibernate during the winter months as they await the arrival of spring. However, often, the best time for consumers to be active in the housing market is when it best meets their goals and needs, not a particular time of year,” Manzano said.
