By Michael Williams 5/12/2021
The numbers are in, and yes, prices are rising, not just in Skaneateles but across the county and region. So far, this year’s numbers in Skaneateles suggest prices are up more than 20% over the same period last year. Why? Several reasons and events are converging.
First, as may seem obvious, the pandemic changed how we lived and worked over the past year. Many people deferred their moves, perhaps indefinitely, and others chose to move to what they otherwise might consider seasonal homes for the year. Thus, existing homes for sale decreased. A decrease in the number of homes for sale without a corresponding decrease in the number of prospective buyers exerts upward pressure on prices.
Second, very few new homes were built last year. Again, the pandemic played a large part in this as builders and building materials suppliers pulled back from an uncertain market. Now they are looking to build, and quickly! The corresponding shortage of materials, however, needs a bit longer to mend as wood and other materials suppliers respond to re-established demand. A sheet of plywood in my local Lowe’s is $60, so the materials shortage will need to abate somewhat to affect any leveling of prices on new homes.
Third, prospective buyers, including both new buyers and buyers who deferred purchases last year, are out looking. Many people who worked through the year were able to save money, and the stimulus payments helped.
So how is this playing out? Multiple offers and escalation clauses have made their way into the local lexicon. Nevertheless, you still can find available homes if you’re willing to do some work, which is how you can find the good deals. Even in the village of Skaneateles, where everything that’s move-in-ready is selling within a few days, homes that need work are going without buyers.
If you need help selling, we at Lake and Village are here to help with marketing and finding a buyer at the best price possible while keeping our commissions below our competitors’. If you’re looking for a home, we can help navigate the turbulence in this seller’s market.