Condo sales, prices drop in region: There were 262 purchases in region in 2009, a 12 percent dip

By Chris Churchill, Albany Times Union, N.Y.

Mar. 9--ALBANY -- The number of condominiums sold in the Capital Region fell sharply in 2009, a trend that reflects the struggles of the overall housing market.

There were 262 Capital Region condo purchases in 2009, according to the Greater Capital Association of Realtors. That's a 12 percent decline from the pace of 2008, when 297 condos were sold.

Prices also fell sharply. For example, the median condo price in Saratoga County dropped from $217,500 in 2008 to $191,500 last year. In Albany County, home to the region's largest condo market, the median fell from $184,900 to $178,500.

The GCAR numbers echo a recently released report on the condo market from T.L. Metzger Associates in Albany. That report, which considers only urban condo locations, found that condo sales in 2009 were down 43 percent from 2008.

Condo inventory in the region's cities also is declining, the report found, in part because many developers have pulled back from building condos -- a trend perhaps best illustrated by Norstar Development's decision last year to delay the Capital Grand project planned for a site north of downtown Albany.

Tracy Metzger, head of Metzger and Associates, has long maintained that there's growing demand for low-maintenance, condo-style living in the Capital Region, although the housing type is still relatively novel here.

On Monday, Metzger noted that several large and high-end apartment developments have opened and seem to be succeeding. (An example is The Alexander, an expensive complex along Washington Avenue in Albany.)

"The demand is getting filled by these new apartment options, because of the lack of condo options," Metzger said.

Metzger's report finds that Saratoga Springs is the only market in the Capital Region that has so far proven itself "able to develop and sell high-end condos."

In fact, the highest condo price yet recorded in the Capital Region occurred in 2009 in Saratoga Springs. A unit at the new Park Place development sold for $1.9 million.

Slumping sales

Condominium sales and prices fell in most of the Capital Region's counties, reflecting the sluggishness of the overall housing market. Only Saratoga County recorded an increase in condo sales, although most of the sold units were outside the city of Saratoga Springs.

County Units sold 2009 % change from 2008 Median price % change from 2008

Albany 94 down 18% $178,500 down 3%

Rensselaer 47 down 19% $155,000 down 4%

Saratoga 74 up 11% $191,500 down 12%

Schenectady 47 down 19% $170,500 down 21%

Source: Greater Capital Association of Realtors

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