Monthly Indicators
National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August.
With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).
New Listings were up 1.2 percent to 685. Pending Sales decreased 7.2 percent to 466. Inventory grew 9.0 percent to 1,615 units.
Prices moved higher as Median Sales Price was up 5.2 percent to $306,000. Days on Market increased 12.5 percent to 54 days. Months Supply of Inventory was up 17.9 percent to 3.3 months, indicating that supply increased relative to demand.
Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.
Housing Supply Overview
Sales of new single-family homes decreased 8.7% month-over-month, to a seasonally adjusted annual rate of 675,000 units, according to the U.S. Census Bureau, the slowest pace since March. Higher mortgage interest rates are taking their toll on buyer demand, and a number of buyers are choosing to postpone their next home purchase until rates move lower. With sales softening, builder confidence also declined, falling five points to 45 in September, according to the National Association of Home Builders (NAHB). For the 12-month period spanning October 2022 through September 2023, Pending Sales in the Western Upstate Association of REALTORS® region were down 6.4 percent overall. The price range with the largest pending sales gain was the $250,001 to $350,000 range, where sales increased 10.2 percent.
The overall Median Sales Price rose 8.8 percent to $286,852. The property type with the largest gain was the Single-Family Homes segment, where prices rose 8.5 percent to $292,910. The price range that tended to sell the quickest was the $150,000 and Below range at 52 days. The price range that tended to sell the slowest was the $1,000,001 and Above range at 80 days.
Market-wide, inventory levels went up 9.0 percent. The property type with the largest gain was the Single-Family Homes segment, where the number of properties for sale went up 9.9 percent. That amounts to 3.3 months of inventory for Single-Family Homes and 2.7 months of inventory for Condos.
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