Housing Supply Overview
Although new construction has yet to come to the rescue of low inventory, there are signs that demand for construction materials is high and that previous measurements of low construction activity have been weighed down by the public sector not private, residential building. For the 12-month period spanning September 2016 through August 2017, Pending Sales in the Western Upstate region were down 0.6 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 14.8 percent.
The overall Median Sales Price was up 7.0 percent to $160,325. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 7.9 percent to $165,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 54 days; the price range that tended to sell the slowest was the $300,001 and Above range at 107 days.
Market-wide, inventory levels were up 0.8 percent. The property type that gained the most inventory was the Condos segment, where it increased 4.8 percent. That amounts to 6.2 months supply for Single-Family homes and 5.2 months supply for Condos.
August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cool down before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be
made well into the school months, as household formations take on many shapes and sizes.
New Listings were up 4.0 percent to 673. Pending Sales decreased 54.2 percent to 214. Inventory grew 0.8 percent to 2,453 units.
Prices moved higher as Median Sales Price was up 4.2 percent to $172,900. Days on Market decreased 22.4 percent to 66 days. Months Supply of Inventory was up 1.6 percent to 6.2 months, indicating that supply increased relative to demand.
The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.
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