Seasonal Slowdown in Full Swing
As expected each January, the Capital Region experienced a seasonal slowdown in real estate market activity. Still, there were 717 new listings reported with pending sales landing at 741. Buyers closed on 662 homes last month with homes spending an average of only 34 days on market.
The median sales price increased by 6.4 percent to $266,000 indicating that the demand for properties remains relatively strong amid a continued seller’s market as evidenced by the drop in days on the Market from 39 in January 2022 to 34 last month and the $16,000 increase in median sales price.
The lag in new construction continues to impact sales prices and inventory challenges.
The 14 percent increase in the month’s supply of inventory was largely existing homes hitting the market. New construction added 121 new units yielding less than two months of inventory at 1,558 units; nearly 10 percent lower than in January 2022. The percentage of the original list price received remained high at 97 percent.
Buyer interest remains strong throughout the Capital Region. The median price of new construction was $550,000 – a 15 percent increase over January 2022 – with only 32 days on the market. Greater Capital Association of REALTORS® CEO, Laura Burns, commented on the current market stating, “There were 18,500 showings last month. Despite unpredictable interest rates, inflation, and the “great resignation,” inventory is still selling in less time on the market and at a higher price than last January. ”
Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.