Housing Supply Overview
Inventory is gradually starting to improve in many pockets across the country, including in several markets that are showing year-over-year percentage increases. Listings tend to improve immediately after a new year, but this national increase also has to do with fewer sales. For the 12-month period spanning February 2018 through January 2019, Pending Sales in the Western Upstate region were down 1.9 percent overall. The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 6.2 percent.
The overall Median Sales Price was up 4.8 percent to $173,000. The property type with the largest price gain was the Condos segment, where prices increased 6.9 percent to $130,000. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 93 days; the price range that tended to sell the slowest was the $300,001 and Above range at 138 days.
Market-wide, inventory levels were up 12.7 percent. The property type that gained the most inventory was the Condos segment, where it increased 46.9 percent. That amounts to 4.4 months supply for Single-Family homes and 5.2 months supply for Condos.
Monthly Indicators
Despite a strong U.S. economy, historically low unemployment and steady wage growth, home sales began to slow across the nation late last year. Blame was given to a combination of high prices and a steady stream of interest rate hikes by the Federal Reserve. This month, the Fed responded to the growing affordability conundrum. In a move described as a patient approach to further rate changes, the Fed did not increase rates during January 2019.
New Listings were down 1.6 percent to 627. Pending Sales decreased 23.2 percent to 318. Inventory grew 12.7 percent to 1,950 units.
Prices moved higher as Median Sales Price was up 2.7 percent to $171,950. Days on Market increased 46.3 percent to 117 days. Months Supply of Inventory was up 15.4 percent to 4.5 months, indicating that supply increased relative to demand.
While the home affordability topic will continue to set the tone for the 2019 housing market, early signs point to an improving inventory situation, including in several markets that are beginning to show regular year-over-year percentage increases. As motivated sellers attempt to get a jump on annual goals, many new listings enter the market immediately after the turn of a calendar year. If home price appreciation falls more in line with wage growth, and rates can hold firm, consumer confidence and affordability are likely to improve.
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