Supply vs Demand
In the Capital Region, what goes up does not necessarily come down. With reports of a slowdown in new construction permits nationwide, a lack of local supply of homes on the market is causing the price creep of the past two years to continue and inventory to dip by more than 25 percent last month. The new median sale price came in at $286,354 with nearly 103% of the list price received at sale.
Pending sales decreased 8.5 percent from July 2021 to 1,247 last month. Closed sales decreased by 23 percent in year over year comparison to 1,104. Greater Capital Association of Realtors® president, Kendal Baker, principal broker of Marker’s Octagon Realty, noted “Currently, the reduction in sales can be attributed more to the lack of homes for sale than a lack of buyers. The Capital Region continues to experience not only an influx of remote workers but also tech employees relocating due to the growing needs of the Tech Valley, other positive business expansions and start-ups throughout the region”
Inventory levels market-wide decreased 35 percent to 2,191 units. Months’ supply of inventory was down to 2 months. The median sales price increased by 10 percent last month. All indications are that prices are likely to stay firm through the remainder of the summer.
GCAR CEO, Laura Burns, noted that “The impact of decreased affordability may challenge not only first-time home buyers seeking to turn their high-cost rent into a mortgage payment but also for those buyers who are ready for their “move-up” home purchase.”
Despite the summer slowdown, homes are still selling quickly, with more than 26,000 showings taking place last month and the typical home staying on market for an average of only 20 days. New Construction added 92 listings in July selling at a median price of $497,822 in 44 days.