Housing Supply Overview
The average 30-year fixed-rate mortgage ended the month at 3.55%, nearly a full point higher than the low of 2.65% recorded in January 2020, with residential borrowing costs now the highest they’ve been since March 2020, according to Freddie Mac. As rates continue to rise, home price growth is predicted to increase at a more moderate pace. While declining home affordability may temper buyer activity, the chronic lack of supply across most housing market segments appears unlikely to change significantly in the near future. For the 12-month period spanning February 2021 through January 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 14.0 percent to $240,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 12.6 percent to $245,000. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 48 days; the price range that tended to sell the slowest was the $300,001 and Above range at 56 days.
Market-wide, inventory levels were up 5.0 percent. The property type that gained the most inventory was the Single Family segment, where it increased 2.8 percent. That amounts to 1.6 months supply for Single-Family homes and 3.1 months supply for Condos.
The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5% compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.
New Listings were down 3.8 percent to 504. Pending Sales decreased 37.9 percent to 313. Inventory grew 5.0 percent to 945 units.
Prices moved higher as Median Sales Price was up 20.1 percent to $242,000. Days on Market decreased 26.8 percent to 52 days. Months Supply of Inventory was up 5.9 percent to 1.8 months, indicating that supply increased relative to demand.
For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.
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