Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations. Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.
New Listings were up 0.3 percent to 620. Pending Sales decreased 33.7 percent to 387. Inventory grew 92.3 percent to 1,615 units.
Prices moved higher as Median Sales Price was up 13.3 percent to $277,594. Days on Market increased 13.0 percent to 52 days. Months Supply of Inventory was up 113.3 percent to 3.2 months, indicating that supply increased relative to demand.
The US housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace. As a result, many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.
Housing Supply Overview
Rising mortgage rates continue to hamper America’s homebuilders, as higher material costs and growing affordability challenges limit the number of people who can afford to purchase a new home, causing new-home sales to decline nationwide. Construction of new homes has slowed, with housing starts down 8.1% month-to-month as of last measure, according to the U.S. Census Bureau, while the supply of new homes for sale increased 13.6% over the same period, equaling a 9.2 months’ supply. For the 12-month period spanning November 2021 through October 2022, Pending Sales in the Western Upstate region were down 8.4 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 13.2 percent.
The overall Median Sales Price was up 12.8 percent to $265,000. The property type with the largest price gain was the Condos segment, where prices increased 30.0 percent to $214,557. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 40 days; the price range that tended to sell the slowest was the $300,001 and Above range at 50 days.
Market-wide, inventory levels were up 92.3 percent. The property type that gained the most inventory was the Condos segment, where it increased 125.4 percent. That amounts to 3.1 months supply for Single-Family homes and 3.4 months supply for Condos.
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