Monthly Indicator Report
It’s tempting to confuse market normalization with a possible slowdown. But those equipped with high-quality MLS data know better. As mortgage delinquencies fade, banks are listing bargain-priced product less often. That means investor activity – which accounts for a substantial market share – is moderating. That’s not to say that rates and prices aren’t still attractive to owner-occupant buyers. They most certainly are. Some short term volatility is expected as part of a normal market readjustment.
New Listings in the Western Upstate region decreased 9.3 percent to 577. Pending Sales were down 24.9 percent to 205. Inventory levels grew 0.6 percent to 3,548 units. Prices marched higher. The Median Sales Price increased 15.8 percent to $141,298. Days on Market was down 5.0 percent to 116 days. Absorption rates improved as Months Supply of Inventory was down 8.4 percent to 12.8 months.
The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction. There is no denying the fact that we’ve now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There’s still work to be done. Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.
Housing Supply Overview
Four factors might be contributing to some market turbulence of late. Weather, interest rates, fewer distressed properties and less investor activity can all affect the market numbers. But the spring market is upon us and there is plenty of reason for optimism. For the 12-month period spanning March 2013 through February 2014, Pending Sales in the Western Upstate region were up 9.8 percent overall. The price range with the largest gain in sales was the $200,001 to $350,000 range, where they increased 30.9 percent.
The overall Median Sales Price was up 7.1 percent to $136,000. The property type with the largest price gain was the Condo segment, where prices increased 8.2 percent to $105,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 99 days; the price range that tended to sell the slowest was the $350,001 and Above range at 149 days.
Market-wide, inventory levels were up 0.6 percent. The property type that gained the most inventory was the Single-Family segment, where it increased 3.1 percent. That amounts to 12.7 months supply for Single-Family homes and 14.2 months supply for Condos.
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