Capital Region Housing Market Holds Steady Despite Higher Mortgage Rates
The November Capital Region housing market showed resilience in the face of higher mortgage rates, with 791 new pending sales—a 15.1 percent increase over November 2022.
Closed sales aligned with the national average, experiencing a nearly 12 percent decline compared to the previous year; 894 sales were recorded during the month.
As a result of low inventory and surprisingly resilient demand, home prices continued to rise. The months’ supply of inventory increased by 4.8 percent to 2.2 months. Sellers experienced success, with homes selling for 99.3 percent of their original list price, indicating a favorable market for sellers.
Greater Capital Association of REALTORS CEO Laura Burns commented, “The nearly 10 percent price gain in the Capital Region last month was not surprising when lined up with the 10 percent hit inventory took in November. Buyers in the Capital Region are active in the local market. Nearly 900 homes closed last month with another 791 going under contract following 8,600 showings.”
While down nearly 10 percent, the rate of decreasing inventory year-over-year has slowed to about half of what it was at this time last year. The region’s median home price was up 9.5 percent in November to $301,000, the fastest price growth in over a year, mirroring the national all-time high median price of $391,800.
November saw a 12 percent increase in newly listed homes compared to the previous year, signaling increased activity among home sellers. Despite consumer expectations of rising mortgage rates, the boost in home selling sentiment suggests potential sellers are adjusting plans to accommodate current market conditions.