Going, Going, Gone! In just 26 days….
Last month, a single-family sold just above 100 percent of the original list price in less than a month on market. That’s a reduction of 22 days over last September. A limited supply of housing and increased selling prices are keeping the Capital Region market hot. Homes are still selling at a brisk pace and listing prices continue to grow steadily over the previous year.
Active inventory continues to fall short and is down 22 percent from a year ago with just 2,874 units on the market. Greater Capital Association of REALTORS® CEO, Laura Burns, commented that “With new listings down 23 percent to 1,453, the uptick in inventory we saw last month seems to have hit the pause button.”
Homes are still being quickly snapped up as demand remains elevated. GCAR President, Jeffrey Decatur of Re/Max Capital noted, “It’s difficult for inventory to grow when shoppers are still actively buying homes and the pace of new sellers is weakening.”
Existing home sales were down in September, falling 14.5 percent. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 11.6 percent to $270,000. New construction provided 127 new listings last month, down by 41 percent on the 217 new homes that came to market in September 2020. This shortage has played a part in the median sale price of new construction rising by 7 percent last month to $425,346.
Declining affordability is showing an impact on homebuyers. According to Freddie Mac, though mortgage rates are still historically low, many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.
As the Capital Region heads into the cooler weather, the market often cools as well. If Covid-19 and Delta variant concerns don’t make it to the rearview mirror, the cold weather might not affect the hot market.