Housing Supply Outlook
The last 12 months have seen a lot of buyer activity. Prices are up in most markets and buyers are hungry to purchase, yet inventory remains low. If existing owners will not sell, new construction is the next best answer to this dilemma. For the 12-month period spanning June 2014 through May 2015, Pending Sales in the Western Upstate region were up 10.6 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 16.0 percent.
The overall Median Sales Price was up 5.0 percent to $141,750. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 5.5 percent to $145,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 96 days; the price range that tended to sell the slowest was the $300,001 and Above range at 137 days.
Market-wide, inventory levels were down 4.2 percent. The property type that lost the least inventory was the Single Family segment, where it decreased 4.1 percent. That amounts to 10.4 months supply for Single-Family homes and 10.8 months supply for Condos.
The U.S. economy has been pretty even so far this year. Usually when new figures are released, they paint a pretty picture worthy of putting above the fireplace in that purchased new home. Recently, some numbers for the first quarter were adjusted to show a slight contraction in the economy. The initial response from Wall Street was unfavorable, but the correction itself is truly a mere blip. Nobody is predicting that the market will take a sudden turn.
New Listings were down 1.9 percent to 756. Pending Sales decreased 42.6 percent to 226. Inventory shrank 4.2 percent to 3,403 units.
Prices moved higher as Median Sales Price was up 10.3 percent to $150,000. Days on Market increased 2.9 percent to 107 days. Months Supply of Inventory was down 13.2 percent to 10.5 months, indicating that demand increased relative to supply.
One interesting effect of a weaker-than-expected economy is that the Federal Reserve does not seem ready to raise short-term interest rates during summer, as some had suggested might happen. New projections indicate that rates will remain the same until September at the earliest. The dominant storylines in housing are decidedly not negative these days. Instead, you’re more likely to see top sales and luxury living highlighted than the woes of foreclosures and short sales.
To view these, and previous, market reports, click here.