March 2023 Market Reports

Housing Supply Overview

According to the U.S. Census Bureau, national sales of new homes edged up 1.1% month-over-month as of last measure, thanks in part to builders’ use of incentives and price discounts, with increases in housing starts and permits reported as well. Builder sentiment also continues to rise, as a limited supply of existing-home inventory has led to an uptick in new home demand. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence increased for the third consecutive month in March, rising two points to 44 from the previous month, marking a six-month high. For the 12-month period spanning April 2022 through March 2023, Pending Sales in the Western Upstate region were down 14.0 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 5.3 percent.

The overall Median Sales Price was up 11.8 percent to $274,000. The property type with the largest price gain was the Condos segment, where prices increased 21.4 percent to $218,545. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 45 days; the price range that tended to sell the slowest was the $300,001 and Above range at 55 days.

Market-wide, inventory levels were up 111.1 percent. The property type that gained the most inventory was the Single Family segment, where it increased 124.4 percent. That amounts to 3.1 months supply for Single-Family homes and 3.2 months supply for Condos.

Monthly Indicators

Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.

New Listings were up 3.7 percent to 706. Pending Sales decreased 19.7 percent to 485. Inventory grew 111.1 percent to 1,486 units.

Prices moved higher as Median Sales Price was up 3.9 percent to $265,000. Days on Market increased 73.2 percent to 71 days. Months Supply of Inventory was up 138.5 percent to 3.1 months, indicating that supply increased relative to demand. Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.

To view these, and previous, market reports click here.