Monthly Indicators
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
New Listings were down 14.5 percent to 355. Pending Sales decreased 24.5 percent to 311. Inventory grew 87.3 percent to 1,431 units.
Prices moved higher as Median Sales Price was up 18.5 percent to $287,964. Days on Market increased 35.6 percent to 61 days. Months Supply of Inventory was up 107.1 percent to 2.9 months, indicating that supply increased relative to demand.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
Housing Supply Overview
In an effort to attract buyers amid slowing traffic and declining home sales, U.S. homebuilders have been increasingly reducing prices and offering sales incentives this year. According to the National Association of Home Builders, 36% of single-family homebuilders reported cutting prices as of last measure, with an average price reduction of 6%.
Meanwhile, 59% of builders reported offering sales incentives, including price discounts, paying closing costs or fees, and offering free upgrades or price discounts, among others. For the 12-month period spanning January 2022 through December 2022, Pending Sales in the Western Upstate region were down 11.7 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 13.5 percent.
The overall Median Sales Price was up 13.2 percent to $270,000. The property type with the largest price gain was the Condos segment, where prices increased 29.8 percent to $220,612. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 41 days; the price range that tended to sell the slowest was the $300,001 and Above range at 52 days.
Market-wide, inventory levels were up 87.3 percent. The property type that gained the most inventory was the Single Family segment, where it increased 90.2 percent. That amounts to 2.8 months supply for Single-Family homes and 3.2 months supply for Condos.
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