Both closed and pending home sales took off in May in Western New York, while competition for fewer homes on the market drove prices slightly higher, according to new figures from the Buffalo Niagara Association of Realtors.
Closed sales rose 17.2 percent to 812 from 693 a year earlier, while pending sales - in which a contract has been signed but the deal isn't done - rose 17 percent to 1,030 from 880, the highest level for any month in two years.
So far this year, closed sales are up 10.8 percent to 3,170 from 2,860 in the first five months of 2011, while pending sales are up 16.3 percent to 4,371 from 3,757.
At the same time, the inventory of homes available for purchase is falling, and fewer homes are being added to the market. The number of homes for sale dropped 11.7 percent in May, to 5,541, while new listings also fell 6.7 percent to 1,784.
That, in turn, means that at the current pace, there is a 6.9 month of supply on the market, down 22.5 percent from an 8.9 month supply a year ago. Homes on average are spending 86 days on the market, up two days from a year ago.
As a result, competition is heating up for the best homes at various price points. The median sales price rose 3.3 percent to $118,000, while the average sales price ticked up 1.3 percent to $137,151. Sellers are getting 95.4 percent of their asking prices.
The figures reported by BNAR reflect only those "arms-length" transactions handled by members of the group in the eight-county region of Western New York, as well as a few sales in Livingston and Monroe counties in the Rochester area.
"Spring has brought both change and clarity to our local market," the Realtors' group said in its statement accompanying the report. "May looked pretty good all around."
