The same factors that catalyzed widespread market recovery in 2012 and 2013 are likely to continue in 2014, though perhaps at a more moderate pace. That’s not a bad thing, since the market is returning to a stable, healthy state. Potential trends to watch for in 2014 include increased seller activity, more new construction and fewer foreclosures on the market. Inventory is another metric to watch this year.
New Listings in the Western Upstate region increased 9.3 percent to 635. Pending Sales were down 32.4 percent to 173. Inventory levels grew 3.6 percent to 3,518 units.
Prices marched higher. The Median Sales Price increased 11.0 percent to $129,900. Days on Market was down 9.7 percent to 113 days. Absorption rates improved as Months Supply of Inventory was down 6.2 percent to 12.7 months.
Given how far the market has come, it’s a good time for folks to reassess their situation. Many who were hesitant to sell in recent years may find themselves in a completely different position. Getting a fresh comparative market analysis might be a good idea. Interest rates remain attractive and should remain below their long-term average, but they are expected to creep higher in 2014. Politicians are gearing up for midterm elections, so pay close attention to campaign messaging as relates to real estate or mortgage financing. Job growth is still fundamental and is likely to dominate this election cycle.
Housing Supply Overview
With 2013 in the rearview mirror, a new year is upon us. Most are expecting the ongoing recovery to continue in 2014, though the pace could moderate as the market normalizes and returns to a healthy state. For the 12-month period spanning February 2013 through January 2014, Pending Sales in the Western Upstate region were up 10.4 percent overall. The price range with the largest gain in sales was the $200,001 to $350,000 range, where they increased 28.1 percent.
The overall Median Sales Price was up 6.3 percent to $135,000. The property type with the largest price gain was the Condo segment, where prices increased 8.4 percent to $103,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 100 days; the price range that tended to sell the slowest was the $350,001 and Above range at 148 days.
Market-wide, inventory levels were up 3.6 percent. The property type that gained the most inventory was the Single-Family segment, where it increased 7.0 percent. That amounts to 12.7 months supply for Single-Family homes and 13.2 months supply for Condos.
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