A conversation with real estate agent Dana Farrell on Albany's hot seller's market

There’s a stately brick Colonial in Albany’s Buckingham Lake neighborhood—one of the most desirable in the city—that sold in early May for $505,000. With multiple offers, it went for $56K over asking. The home last sold in 2015 for $235K—$64K BELOW asking. (You can see the full listing here.)

In this one house, we can see how the real estate market in Albany is trending. There’s no question—it’s a hot seller’s market right now.

In fact, Zillow’s Market Heat Index currently lists Albany, Buffalo, Rochester, and Syracuse as the top 4 seller’s markets in the entire country. Just since February, the median home price in Albany has soared from $239K to $289K in July, according to Movoto.

Likewise, home prices in Schenectady, Troy and Latham have been on a tear. But it’s not a hot market everywhere—prices in Clifton Park and Loudonville have been relatively flat. You can find the trend for your own area on Movoto (enter your zip code, scroll down to the bottom, click on “sold price” under market trends & statistics).

To get a read on the Capital Region’s housing market, we turned to Dana Farrell with Howard Hanna, who represented the buyer who purchased Albany’s priciest home in recent history at $1.2 million in May. She also happens to be OUR real estate agent, who helped us buy The 518’s home base in Albany. Btw, we can’t recommend Dana enough if you’re looking to buy or sell!

“We’re in a seller’s market because we still have a deficit of homes,” Dana said. “If the home is priced really well, you’re going to see instant activity because there’s just not enough inventory.”

She said the market for homes between $200K and $300K is particularly competitive. Sellers in that range can easily get multiple offers within a couple of days of listing their home, especially if it’s priced right. Dana typically advises her clients to be a “little less aggressive” with pricing to drive up this kind of demand.

So, what can buyers do in this seller’s market? She suggests being as flexible as possible in terms of financing and timing: Work with buyers on their move-out date. Put down a higher down payment. Offer all cash.

But even in a seller’s market, “every home is unique,” she said, noting that she recently represented sellers in North Colonie and Guilderland where the purchase price was not over asking. At the same time, she has a home in Niskayuna under contract now that is “quite a bit over asking.”

“You really need to walk through the home,” Dana said. “If the kitchen or the bathroom hasn’t been updated, that will turn off some buyers. On the other hand, someone might be willing to pay a lot more for a house because it has seven acres.”

Of course, that old adage still stands: It’s about location, location, location. A home in Buckingham Lake with exceptional design is going to be highly desirable. Being situated near a lot of restaurants, boutiques and grocery stores will also drive demand.

“Albany home prices are rivaling suburban home prices," real estate agent Alexander Monticello told the Albany Business Review. "People like the walkability and the convenience of the city."