Housing Supply Overview
Supply will dip for the remainder of the year, but there are some hopeful signs that we may see a bump in the new year. To say that more inventory
will immediately impact housing markets is premature, especially if affordability continues to drop and prices continue to rise. For the 12-
month period spanning November 2016 through October 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 8.7 percent to $163,000. The property type with the largest price gain was the Single-Family Homes
segment, where prices increased 7.1 percent to $166,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range
at 55 days; the price range that tended to sell the slowest was the $300,001 and Above range at 105 days.
Market-wide, inventory levels were down 4.5 percent. The property type that gained the most inventory was the Condos segment, where it
increased 7.0 percent. That amounts to 5.6 months supply for Single-Family homes and 4.6 months supply for Condos.
For residential real estate in 2017, the news has continued to provide a relative sense of calm for both buyers and sellers. The national unemployment rate registered in at 4.1 percent for October 2017, which means that joblessness has not been this low in the U.S. since December 2000. Another positive, mortgage rates have held steady at or near 3.9 percent. Historically, the average rate has been around 6.0 percent. These factors help to keep the pool of potential buyers full, even during the so-called off-season of home sales.
New Listings were down 8.5 percent to 535. Pending Sales decreased 47.8 percent to 199. Inventory shrank 4.5 percent to 2,222 units.
Prices moved higher as Median Sales Price was up 4.1 percent to $171,750. Days on Market decreased 16.3 percent to 72 days. Months Supply of Inventory was down 3.5 percent to 5.5 months, indicating that demand increased relative to supply.
Although inventory levels are low in many markets, there has largely been enough listing and building activity, or at least conversation about future activity, to maintain a positive attitude about the prospects of buying or selling a home. Low affordability has started to become a recent topic of conversation and is worth watching. But with a healthy economy, level of demand and national unemployment rate, sellers are going to continue to see strong prices for their homes.
To view these, and previous, market reports click here.