Housing Supply Overview
Sales have been brisk, particularly at midpoint levels away from the highs and lows, and months’ supply of inventory continues to drop, sometimes significantly. For the 12-month period spanning July 2015 through June 2016, Pending Sales in the Western Upstate region were up 0.3 percent overall. The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 8.1 percent.
The overall Median Sales Price was up 5.2 percent to $149,900. The property type with the largest price gain was the Condos segment, where prices increased 9.1 percent to $108,000. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 84 days; the price range that tended to sell the slowest was the $300,001 and Above range at 126 days.
Market-wide, inventory levels were down 7.2 percent. The property type that lost the least inventory was the Condos segment, where it decreased 5.6 percent. That amounts to 8.0 months supply for Single-Family homes and 8.3 months supply for Condos.
Halfway through 2016, residential real estate markets are performing as predicted at the beginning of the year. Sales and prices have been going up in most areas, while the number of homes for sale and total months’ supply of inventory have been going down. Meanwhile, many sellers have been getting a higher percentage of their asking price, and supply continues to struggle to meet demand. The message may be repetitive, but it is largely positive.
New Listings were down 7.4 percent to 652. Pending Sales decreased 51.7 percent to 209. Inventory shrank 7.2 percent to 2,890 units.
Prices moved higher as Median Sales Price was up 0.3 percent to $156,950. Days on Market decreased 7.4 percent to 88 days. Months Supply of Inventory was down 6.9 percent to 8.1 months, indicating that demand increased relative to supply.
The national unemployment rate recently dropped 0.3 percent to 4.7 percent, but some states felt more of a pinch in their own figures. Similarly, the low inventory situation is showing signs of strain in markets where there are few homes for purchase. With an interest rate increase still in the cards this year, combined with the American political landscape and global economic events, a cool-down could occur by winter. Presently, however, summery growth prevails as many locales are reaching near-record prices not seen in more than a decade.
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