Housing Supply Overview
With a shortage of existing homes for sale, many prospective buyers are turning to new construction for their next home purchase. But with rising construction costs, many buyers are finding they can’t afford to purchase a new home. Nearly 7 out of 10 U.S. households can’t afford a new median-priced home, according to data recently released by the National Association of Home Builders (NAHB), which found that 69% of U.S. households lack the income to qualify for a mortgage of $412,506 using standard underwriting criteria. For the 12-month period spanning March 2021 through February 2022, Pending Sales in the Western Upstate region were down 0.9 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 16.4 percent.
The overall Median Sales Price was up 12.1 percent to $241,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 12.5 percent to $247,950. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 46 days; the price range that tended to sell the slowest was the $300,001 and Above range at 54 days.
Market-wide, inventory levels were up 12.5 percent. The property type that gained the most inventory was the Single Family segment, where it increased 10.7 percent. That amounts to 1.6 months supply for Single-Family homes and 2.9 months supply for Condos.
The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.
New Listings were up 10.6 percent to 593. Pending Sales decreased 25.7 percent to 373. Inventory grew 12.5 percent to 946 units.
Prices moved higher as Median Sales Price was up 12.3 percent to $255,250. Days on Market decreased 33.8 percent to 53 days. Months Supply of Inventory was up 12.5 percent to 1.8 months, indicating that supply increased relative to demand.
Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.
To view these, and previous, market reports click here.