Housing Supply Overview
The primary housing storyline for the past two years remains the same. Demand is high, supply is low and interest rates have been steady. There
are a few signs that indicate an increase in the number of homes for sale in 2018. For now, inventory remains low in most submarkets. For the 12-
month period spanning December 2016 through November 2017, Pending Sales in the Western Upstate region were down 1.2 percent overall. The
price range with the largest gain in sales was the $300,001 and Above range, where they increased 11.7 percent.
The overall Median Sales Price was up 8.6 percent to $164,000. The property type with the largest price gain was the Single-Family Homes
segment, where prices increased 8.1 percent to $167,500. The price range that tended to sell the quickest was the $100,001 to $150,000 range
at 56 days; the price range that tended to sell the slowest was the $300,001 and Above range at 104 days.
Market-wide, inventory levels were down 2.3 percent. The property type that gained the most inventory was the Condos segment, where it
increased 11.0 percent. That amounts to 5.3 months supply for Single-Family homes and 4.3 months supply for Condos.
The facts of residential real estate have remained consistent in 2017. In year-over-year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices. This hasn’t always been true, but it has been a common enough storyline to make it an overarching trend for the year.
New Listings were up 12.6 percent to 473. Pending Sales decreased 50.7 percent to 165. Inventory shrank 2.3 percent to 2,121 units.
Prices moved higher as Median Sales Price was up 7.3 percent to $171,550. Days on Market increased 5.6 percent to 76 days. Months Supply of Inventory was down 1.9 percent to 5.2 months, indicating that demand increased relative to supply.
New tax legislation could have ramifications on housing. The White House believes that the tax reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost homeownership. The National Association of REALTORS® has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story.
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