Buying a house in Syracuse became much more expensive last month, causing some upstate New York buyers to hold off on purchasing a property.
Median home prices grew 8.2% year over year in August from $249,900 to $270,500, the Greater Syracuse Association of Realtors said Thursday in its latest market report, which captures homebuying activity in Cayuga, Madison, Oneida, Onondaga, Oswego and Seneca counties. The real estate agents' group reported closed sales plunged 13% from 871 to 759, while pending sales dropped 12.6% from 768 to 671.
Closed and pending sales dipped last month, in part, because homebuyers "are taking their time in moving forward," said David Manzano, the group's president.
"For most of us, buying a home is the largest financial investment we’ll make, and buyers were proceeding at a more deliberate pace in August — many with an eye on potential future decreases in (mortgage) rates," Manzano, an agent at MyTown Realty in Syracuse, said in a statement.
Sales may have dipped, but that doesn't mean homebuying has completely shut down in Syracuse, Reginia Tuttle, the group's CEO, said in a statement.
"There is still a great deal of buyer interest in newly listed homes, even in this more deliberate environment," Tuttle said, adding that those that do sell are doing so after multiple, above-asking-price offers.
Days on market fell from 19 to 16 year over year in August.
New listings rose 5.3% year over year in August from 1,030 to 1,085, while existing inventory skyrocketed 43% from 1,253 to 1,791.
There are dozens of homes for sale in Syracuse — including a three-bedroom ranch for $199,900, a three-bedroom Cape Cod for $219,000 and a two-bedroom bungalow for $165,000.
Region works to meet the demand
Syracuse has long been one of the largest cities in upstate New York where homes are less expensive compared to downstate markets such as Westchester County, New York City and Long Island. However, Syracuse and the greater Onondaga County now find themselves in need of more housing fast.
That's because, two years ago, computer chip manufacturer Micron Technology announced plans to build a new facility in Clay — a small suburb 15 miles north of Syracuse — that will employ 9,000 workers. Micron officials began construction on the facility last year.
Experts watching Syracuse's housing market say there aren't enough units to house an influx of Micron employees. Onondaga officials told Micron executives in a 2022 presentation that local homebuilders are working to create 12,000 new housing units in the area — about 3,000 of which would be single-family residences, with the remaining as apartments.