Housing Supply Overview
Builder sentiment slid into negative territory in August, as higher costs continue to impact buyers and builders alike. Buyer traffic has declined considerably this summer, with new home sales down 29.6% nationally compared to a year ago and falling to their lowest level since 2016, according to the U.S. Census Bureau. As sales slow and new home inventory piles up, builders are lowering prices to entice buyers, with about 1 in 5 builders cutting prices in August to boost sales and limit cancellations, according to the National Association of Home Builders. For the 12-month period spanning September 2021 through August 2022, Pending Sales in the Western Upstate region were down 6.5 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 14.9 percent.
The overall Median Sales Price was up 12.4 percent to $258,500. The property type with the largest price gain was the Condos segment, where prices increased 26.2 percent to $207,371. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 40 days; the price range that tended to sell the slowest was the $300,001 and Above range at 49 days.
Market-wide, inventory levels were up 71.6 percent. The property type that gained the most inventory was the Condos segment, where it increased 150.0 percent. That amounts to 2.9 months supply for Single-Family homes and 3.2 months supply for Condos.
Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new home sales and construction to slow.
New Listings were down 5.0 percent to 703. Pending Sales decreased 19.1 percent to 486. Inventory grew 71.6 percent to 1,534 units.
Prices moved higher as Median Sales Price was up 3.6 percent to $260,000. Days on Market held steady at 40. Months Supply of Inventory was up 87.5 percent to 3.0 months, indicating that supply increased relative to demand.
Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.
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