Nationwide, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of REALTORS®. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year. Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search.
New Listings were down 6.2 percent to 591. Pending Sales decreased 41.2 percent to 337. Inventory grew 1.9 percent to 1,132 units.
Prices moved higher as Median Sales Price was up 9.1 percent to $245,500. Days on Market decreased 39.7 percent to 44 days. Months Supply of Inventory was up 4.8 percent to 2.2 months, indicating that supply increased relative to demand.
There are signs the market may be shifting, however. New listings have continued to hit the market, bucking seasonality trends commonly seen in the fall, a time when listing and sales activity typically slows as children return to school. As inventory increases, competition for homes may soften, and could even bring a moderation in sales prices, which, after 114 months of year-over-year gains, would be music to the ears of homebuyers throughout the country.
Housing Supply Overview
According to the National Association of REALTORS®, the number of first-time homebuyers declined to 29%, the lowest level in years, as bidding wars, competition from cash buyers, and a lack of affordable housing have caused some buyers to put their home plans temporarily on hold.
With sales prices posting double-digit increases year-over-year, some first-time buyers have found they may lack the financial resources to buy a home and have decided to wait for a change in their personal or economic conditions before continuing their home search. For the 12-month period spanning October 2020 through September 2021, Pending Sales in the Western Upstate region were up 1.3 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 26.4 percent.
The overall Median Sales Price was up 17.1 percent to $234,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 17.6 percent to $240,000. The price range that tended to sell the quickest was the $100,000 and Below range at 51 days; the price range that tended to sell the slowest was the
$300,001 and Above range at 66 days.
Market-wide, inventory levels were up 1.9 percent. The property type that gained the most inventory was the Single Family segment, where it increased 5.1 percent. That amounts to 2.2 months supply for SingleFamily homes and 1.6 months supply for Condos.
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