Housing Supply Overview
Months of supply are beginning to rise as unaffordable-to-most listings begin to enter the market with more regularity. Sales have actually been steady in higher price ranges, while first-time buyer markets are extremely competitive. For the 12-month period spanning May 2018 through April 2019, Pending Sales in the Western Upstate region were down 1.8 percent overall. The price range with the largest gain in sales was the $150,001 to $200,000 range, where they increased 4.7 percent.
The overall Median Sales Price was up 4.1 percent to $174,900. The property type with the largest price gain was the Condos segment, where prices increased 7.6 percent to $134,500. 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 133 days.
Market-wide, inventory levels were up 11.1 percent. The property type that gained the most inventory was the Condos segment, where it increased 60.2 percent. That amounts to 4.5 months supply for Single- Family homes and 6.4 months supply for Condos.
For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales.
Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets. However, buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce.
New Listings were up 9.5 percent to 785. Pending Sales decreased 30.1 percent to Inventory grew 11.1 percent to 2,036 units.
Prices moved higher as Median Sales Price was up 1.4 percent to $173,477. Days on Market increased 10.6 percent to 115 days. Months Supply of Inventory was up 11.9 percent to 4.7 months, indicating that supply increased relative to demand.
The national unemployment rate dropped to 3.6 percent during April 2019, the lowest level since 1969. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, yet inventory is straining to keep pace in the most competitive price ranges.
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