Inventory Woes Continue
And so it goes….across the Capital Region, last month sellers listed 866 homes, but buyers continued to outpace them by going under contract for 887 single-family homes creating an all-time inventory low of 1.3 months’ supply.
The shortage of homes is boosting market competitiveness and with bidding wars common throughout our market, it’s no surprise sales prices continue to soar. In the Capital Region, the median sales price increased 8.7 percent over February 2021 to $250,000. New construction’s median price for February 2022 landed at $461,894 which leans towards the rest of the country’s markets as well.
Lawrence Yun, Chief Economist at the National Association of REALTORS®, reported that much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind and pushing rents up.
Though some corporate home investors espouse their rentals are helping those who have been priced out of buying a home live the “American Dream” by renting, Laura Burns, CEO of the Greater Capital Association of REALTORS® disagrees stating, “Homeownership has always been and will remain a critical part of the path to living the “American Dream”. Owning your own home enables the building of wealth, control of costs, and home equity that can transfer from one generation to the next.” Last March Forbes Magazine cited that 57% of people between 18 and 29 believe homeownership is still an essential part of the American dream.
“With such high demand and low inventory, houses are flying off the shelves, averaging just 52 days on market. Having more listings on the market would be good for everyone. The stage is set for another active spring selling season,” said Kendal Baker, of Marker’s Octagon Realty, GCAR President.
Sales were down compared to last year, despite increased showings and buyer interest, which may mean that consumers are being more selective amidst rising prices. Pending sales decreased 6.7 percent from February 2021 to 887 for the month. New construction listings added 115 homes to the market. The arrival of Spring usually has a positive impact on the local market which already seems to be revving up despite the chilly February – last month REALTORS® in the Capital Region conducted 22,850 showings.