Housing Supply Overview
Bedroom Housing had a slow start to the year but ongoing market improvements across various areas and segments continue. Nowadays, it’s important to assess market performance by price point. Also watch for long-awaited and yet still-uneven inventory gains. For the 12-month period spanning September 2013 through August 2014, Pending Sales in the Western Upstate region were up 2.4 percent overall. The price range with the largest gain in sales was the $200,001 to $350,000 range, where they increased 9.7 percent.
The overall Median Sales Price was up 4.2 percent to $138,000. The property type with the largest price gain was the Condo segment, where prices increased 8.0 percent to $105,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 93 days; the price range that tended to sell the slowest was the $350,001 and Above range at 146 days.
Market-wide, inventory levels were up 5.8 percent. The property type that gained the most inventory was the Single-Family segment, where it increased 9.1 percent. That amounts to 13.9 months supply for Single-Family homes and 10.0 months supply for Condos.
Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline. This is not uncommon in a balanced market, but it’s been so long since we’ve seen one that we’re watching it with perhaps too much trepidation. Metrics to watch include inventory and prices, but also days on market, months supply and percent of list price received at sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand.
New Listings in the Western Upstate region increased 0.5 percent to 615. Pending Sales were down 29.9 percent to 227. Inventory levels rose 5.8 percent to 3,920 units.
Prices continued to gain traction. The Median Sales Price increased 6.0 percent to $145,000. Days on Market was up 1.4 percent to 109 days. Buyers felt empowered as Months Supply of Inventory was up 3.3 percent to 13.6 months.
Sustained job growth, lower mortgage rates and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it’s encouraging to see second quarter GDP growth revised upwards to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues.
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