The U.S. real estate market continues to slow as we move into fall, as rising consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity. With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increase this year. The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, causing existing home sales to decline for the seventh consecutive month.
New Listings were up 8.5 percent to 665. Pending Sales decreased 17.6 percent to 436. Inventory grew 78.8 percent to 1,593 units.
Prices moved higher as Median Sales Price was up 19.1 percent to $291,745. Days on Market increased 4.4 percent to 47 days. Months Supply of Inventory was up 93.8 percent to 3.1 months, indicating that supply increased relative to demand. Affordability challenges have priced many buyers out of the market this year, and buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of REALTORS®. Inventory remains lower than normal, and as the market continue to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.
Housing Supply Overview
Builder confidence declined for the ninth consecutive month in September, as high home prices, rising interest rates, and elevated building costs continue to impact affordability, reducing buyer traffic and hindering new home sales, according to the National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI). The NAHB reports builder confidence dropped 3 points to 46 in September; by contrast, the index stood at 83 in January, when interest rates were half of what they are now. For the 12-month period spanning October 2021 through September 2022, Pending Sales in the Western Upstate region were down 6.1 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 15.7 percent.
The overall Median Sales Price was up 11.9 percent to $262,810. The property type with the largest price gain was the Condos segment, where prices increased 28.2 percent to $210,417. 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 49 days.
Market-wide, inventory levels were up 78.8 percent. The property type that gained the most inventory was the Condos segment, where it increased 155.2 percent. That amounts to 3.0 months supply for Single-Family homes and 3.3 months supply for Condos.
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