Capital Region housing market shifts toward buyers as high-end homes linger

Troy broker Colin McDonald says the Capital Region’s housing market is moving in buyers’ favor as higher-end homes stay listed longer and sellers cut prices. He expects the trend to continue heading into the November midterms, with pricing discipline becoming more important for sellers.

Why it matters: - Buyers in the Capital Region are regaining negotiating power after years of bidding wars and fast-moving sales. - Higher-end sellers face longer market times and more pressure to reduce prices. - The shift could change how homes are priced and negotiated heading into the November midterms.

What happened: - Colin McDonald, broker-owner of McDonald Real Estate Company in Troy, said the Capital Region housing market is tilting toward buyers. - McDonald said homes, especially in the higher-end market, are sitting on the market longer. - Sellers are increasingly lowering prices to draw offers. - The comments came as the region heads toward the November midterm elections.

The details: - McDonald said the market is changing most clearly at the top end. - He said homes that would have drawn multiple offers a few years ago are now taking longer to sell. - In desirable neighborhoods, buyers no longer feel forced to overpay just to get into a specific area. - McDonald said buyers are “finally seeing some relief” and are able to negotiate again. - He said buyers are also putting more of their own money and judgment into deals. - McDonald said interest rates were lower two or three years ago, when the market was stronger. - He said some buyers used to stretch their budgets to win homes in sought-after neighborhoods.

Between the lines: - The market’s balance appears to be shifting from seller leverage to price discipline. - If rates move higher, as McDonald expects they could near 8%, affordability pressure could further weaken seller leverage. - His comments suggest the biggest reset is happening in the luxury and move-up segments, where pricing errors are no longer getting rewarded. - The advice to sellers is clear: overpricing now risks sitting on the market and forcing multiple cuts later.

What’s next: - McDonald expects buyers to hold an even stronger hand in the coming months. - He said sellers will need to price homes realistically from the start. - McDonald said sellers can no longer expect “crazy numbers” like they saw a couple of years ago. - He said buyers who paused during the bidding-war period should consider re-entering the market because negotiation is back.

The bottom line: - The Capital Region housing market is becoming less seller-driven, and the higher-end segment is feeling the change first.