Updated: January 24th, 2025

   January report

 NY housing market sees sales climb despite record-low inventory. Home sales inched upwards in December 2024 despite housing inventory reaching its lowest point in recorded history, according to the housing report released by the New York State Association of REALTORS® (NYSAR). Housing inventory fell 2.6% in December; from 23,808 units available in December 2023 to a record low 23,198 homes in December 2024. This marks the lowest number of homes for sale since statistics started being kept by NYSAR in 1997.

Sales across the Empire State did increase in December. Closed sales rose 3.7%– from 8,814 homes in December 2023 to 9,138 units last month. Pending sales increased from 6,207 homes in December 2023 to 6,423 homes in 2024. This represents a 3.5% rise in year-over-year comparisons. New listings were also up 3.9% in December – from 5,742 listings in 2023 to 5,968 listings in 2024.

Interest rates dropped slightly in December, according to Freddie Mac. The average rate on a 30-year fixed- rate mortgage ended the month at 6.72%, which is lower than the November average rate of 6.81%. For comparison, a year ago, the interest rate stood close to November’s average rate of 6.82%. Median sales prices continue to escalate, rising 10.5% in December, from $380,000 in December 2023 to $420,000 in December 2024.

How “good cause eviction” is raising New Yorkers’ rents

Renters residing in New York City and municipalities that have adopted “good cause” eviction, which NYSAR strongly opposed, are likely facing higher rent increases now due to the law. The average monthly CPI for the NY/NJ/PA area increased by roughly 3.8% in 2023 and again in 2024. Following enactment of the state “good cause” eviction law, which imposes rent increase restrictions in New York City and other municipalities that have opted into the law, the maximum rent increase currently sits at around 8.8% in New York City. Building owners and landlords are now more likely to set rent increases at the 8.8% provided to them, where they may have not increased rents at all. Unfortunately, New York tenants covered by “good cause” eviction will end up paying more than if the law had not passed.