Housing Supply Overview
Millennials are entering the housing market at a record pace, fueling demand and driving sales prices higher amid an epic housing shortage. Currently, millennials represent 22% of the U.S. population but make up 43% of the current market share, according to a survey by the National Association of REALTORS®. With nearly a quarter of the population approaching their peak earning years over the next two decades, this new generation of homebuyers are expected to have a big impact on the economy—and on the housing market—in the years to come. For the 12-month period spanning April 2021 through March 2022, Pending Sales in the Western Upstate region were down 4.3 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 11.9 percent.
The overall Median Sales Price was up 12.4 percent to $245,000. The property type with the largest price gain was the Condos segment, where prices increased 12.1 percent to $180,000. The price range that tended to sell the quickest was the $100,000 and Below range at 43 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 26.6 percent. The property type that gained the most inventory was the Single Family segment, where it increased 25.5 percent. That amounts to 1.6 months supply for Single-Family homes and 3.0 months supply for Condos.
Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory.
Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.
New Listings were down 1.8 percent to 673. Pending Sales decreased 32.1 percent to 444. Inventory grew 26.6 percent to 951 units.
Prices moved higher as Median Sales Price was up 17.0 percent to $255,000. Days on Market decreased 40.6 percent to 41 days. Months Supply of Inventory was up 28.6 percent to 1.8 months, indicating that supply increased relative to demand.
Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.
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