Housing Supply Overview
The prevailing trend for 2015 still appears to be more sales and rising prices – not of the headline-grabbing variety but enough to keep the wider economy bullish on housing. With improved inventory, things will only get better. For the 12-month period spanning February 2014 through January 2015, Pending Sales in the Western Upstate region were up 8.0 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 13.2 percent.
The overall Median Sales Price was up 2.3 percent to $138,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 3.1 percent to $140,500. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 95 days; the price range that tended to sell the slowest was the $300,001 and Above range at 140 days.
Market-wide, inventory levels were up 0.5 percent. The property type that gained the most inventory was the Single Family segment, where it increased 0.8 percent. That amounts to 10.2 months supply for Single-Family homes and 8.9 months supply for Condos.
It’s already evident that 2015 will be marked by talk of changing mortgage rates and regulations. Rates should stay low, but consumers and finance experts alike believe that we’re at or near rate bottoms. Early indications point to more sales, more listings, more new construction and more excitement. It’s not expected to be the overblown land grab of the early 2000s, but it should feel like a healthy market, which, in and of itself, may feel like an odd sensation to real estate practitioners accustomed to the boom and bust of the 21st century.
New Listings were down 9.4 percent to 605. Pending Sales decreased 38.0 percent to 170. Inventory grew 0.5 percent to 3,129 units.
Prices moved higher as Median Sales Price was up 13.8 percent to $145,700. Days on Market increased 0.9 percent to 113 days. Months Supply of Inventory was down 6.5 percent to 10.1 months, indicating that demand increased relative to supply.
The 3 percent downpayment programs from Fannie Mae and Freddie Mac should help potential new homeowners, but in a recent member survey by the Independent Community Bankers of America, three-fourths of respondents stated that regulatory burdens are hurting their ability to loan money. The wider economy shows slight wage increases and gas prices near five-year lows but rising along with extended daylight and buyer demand. These various economic pushes and pulls can turn stagnant markets into exciting ones. It’s all in how you look at it.
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