Housing Supply Overview
The share of Americans planning to purchase a home in the next year is falling, according to NAHB’s Housing Trends Report, with only 13% of adults intending to purchase a home in the next 12 months, the lowest level since mid-2020. Declining affordability and low inventory have made it difficult for many buyers to compete in the current market, as rising inflation, surging interest rates, and record high sales prices have priced an increasing number of prospective buyers out of the market. For the 12-month period spanning May 2021 through April 2022, Pending Sales in the Western Upstate region were down 7.1 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 7.7 percent.
The overall Median Sales Price was up 12.5 percent to $247,500. The property type with the largest price gain was the Condos segment, where prices increased 16.9 percent to $187,579. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 42 days; the price range that tended to sell the slowest was the $300,001 and Above range at 51 days.
Market-wide, inventory levels were up 42.1 percent. The property type that gained the most inventory was the Single Family segment, where it increased 42.1 percent. That amounts to 1.8 months supply for Single-Family homes and 2.7 months supply for Condos.
The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
New Listings were up 3.3 percent to 679. Pending Sales decreased 36.7 percent to 397. Inventory grew 42.1 percent to 1,006 units. Prices moved higher as Median Sales Price was up 13.6 percent to $255,500. Days on Market decreased 25.5 percent to 41 days. Months Supply of Inventory was up 58.3 percent to 1.9 months, indicating that supply increased relative to demand.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
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