Housing Supply Overview
Summer’s here, and with vaccination rates on the rise, buyers continue to flood the market in search of their next home, with rock bottom inventory and record high sales prices reported throughout much of the country. Although closed sales were down nationally, overall demand for housing remains high, in part due to attractively low interest rates, offering buyers some relief and affordability in a fiercely competitive market.
For the 12-month period spanning July 2020 through June 2021, Pending Sales in the Western Upstate region were up 7.4 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 48.9 percent.
The overall Median Sales Price was up 18.5 percent to $225,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 19.6 percent to $233,150. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 58 days; the price range that tended to sell the slowest was the
$300,001 and Above range at 81 days.
Market-wide, inventory levels were down 20.4 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 19.9 percent. That amounts to 1.9 months supply for Single-Family homes and 2.4 months supply for Condos.
School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices. May saw the median existing home sales price exceed $350,000, a 24% increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS®. Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.
New Listings were up 8.1 percent to 718. Pending Sales decreased 43.2 percent to 367. Inventory shrank 20.4 percent to 1,059 units.
Prices moved higher as Median Sales Price was up 12.9 percent to $240,500. Days on Market decreased 47.3 percent to 48 days. Months Supply of Inventory was down 25.9 percent to 2.0 months, indicating that demand increased relative to supply.
The increase in sales prices comes with a slight decline in existing home sales nationwide, as homebuyers struggle with declining affordability amid a lack of inventory, forcing some buyers to simply wait it out in hopes of more inventory and less competition. Meanwhile, home builders are trying to meet the increased market demand, with housing starts up 3.6% in May from April, according to the Commerce Department. As we ease into new routines and look forward to a post-pandemic future, one thing remains certain: America desperately needs more homes.
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