Housing Supply Outlook
With the election cycle behind us and 2015 well within sight, it’s a good time to start assessing how the market is shaping up. Inventory levels are finally rising in many areas and demand is still strong in most segments. For the 12-month period spanning November 2013 through October 2014, Pending Sales in the Western Upstate region were up 5.2 percent overall. The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 9.8 percent.
The overall Median Sales Price were up 3.7 percent to $137,500. The property type with the largest price gain was the Condos segment, where prices increased 20.7 percent to $105,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 94 days; the price range that tended to sell the slowest was the $300,001 and Above range at 142 days.
Market-wide, inventory levels were up 6.0 percent. The property type that gained the most inventory was the 4 Bedrooms or More segment, where it increased 8.2 percent. That amounts to 11.8 months supply for Single-Family homes and 10.2 months supply for Condos.
Even while the pace of home price acceleration normalizes, housing has shown recent signs of ongoing strength. Both housing starts and future building permits are on the rise nationally. Inventory levels are increasing in most metro areas, driven higher by rising prices and more confident sellers. Homes are still selling quickly and for close to or even above list price.
New Listings were up 26.5 percent to 673. Pending Sales decreased 23.2 percent to 192, the eighth consecutive month of year-over-year declines. Inventory grew 6.0 percent to 3,523 units.
Prices moved higher as Median Sales Price was up 1.8 percent to $140,000. Days on Market increased 13.0 percent to 122 days. Months Supply of Inventory remained flat at 11.7, indicating a stabilizing supply-demand balance.
Interest rates remain attractive, even as Federal Reserve banter is finally hinting that quantitative easing is reaching its fateful conclusion. Capital markets have exhibited some volatility, but ultimately it’s all about earnings and growth, and corporate earnings have been encouragingly strong, while private job gains have recently exceeded expectations.
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