Housing Supply Overview
New residential construction continues to pick up steam, as limited existing-home inventory drives buyer demand toward the new construction market. Monthly new-home sales exceeded economists’ expectations once again, rising 4.1% to a seasonally adjusted annual rate of 683,000 units, the highest reading since March 2022, according to the U.S. Census Bureau. Housing starts were up 2.2% month-over month, reflecting gains in both single-family and multifamily construction, while permits for future single-family homes reached a 7-month high. For the 12-month period spanning June 2022 through May 2023, Pending Sales in the Western Upstate Association of REALTORS® region decreased 10.8 percent overall. The price range with the largest pending sales gain was the $750,001 to $1,000,000 range, where sales increased 20.4 percent.
The overall Median Sales Price improved 10.9 percent to $277,330. The property type with the largest gain was the Condos segment, where prices increased 15.0 percent to $218,500. The price range that tended to sell the quickest was the $150,000 and Below range at 48 days. The price range that tended to sell the slowest was the $1,000,001 and Above range at 72 days.
Market-wide, inventory levels went up 37.3 percent. The property type with the largest gain was the Single-Family Homes segment, where the number of properties for sale were up 42.6 percent. That amounts to 2.9 months of inventory for Single-Family Homes and 3.3 months of inventory for Condos.
Monthly Indicators
Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
New Listings were down 14.8 percent to 741. Pending Sales increased 5.4 percent to 547. Inventory grew 37.3 percent to 1,471 units.
Prices moved higher as Median Sales Price was up 4.2 percent to $300,000. Days on Market increased 73.0 percent to 64 days. Months Supply of Inventory was up 50.0 percent to 3.0 months, indicating that supply increased relative to demand.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.
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