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Since the 2008 reset, new home construction has fallen behind by nearly 3.8 million homes. Now the market is struggling to meet buyer demand. New home sales rose 14% this year, according to the U.S. Department of Housing and Urban Development, despite labor shortages and supply chain issues. Strong demand for new housing boosts builder confidence, resulting in new communities nationwide. New home prices are rising double digits this fall due to market factors. New construction sales prices have risen, helping homeowners cash in on their equity.
Since the 2008 reset, new home construction has fallen behind by nearly 3.8 million homes. Now the market is struggling to meet buyer demand. New home sales rose 14% this year, according to the U.S. Department of Housing and Urban Development, despite labor shortages and supply chain issues. Strong demand for new housing boosts builder confidence, resulting in new communities nationwide. New home prices are rising double digits this fall due to market factors. New construction sales prices have risen, helping homeowners cash in on their equity.
Grand Strand single-family home sales remain strong. In October, our market’s median single-family home sales price was $319,000 and the average was nearly $375,000, up 26.7%. Despite a rise in new listings in October, there are 35.3% fewer homes for sale than last year. Home prices will keep rising as demand outstrips supply. The fastest-selling homes were $150,000-$200,000. Buyer interest is higher at this price point due to affordability, so homes sell faster. The $300,000-plus price range sold in 118 days, down 25% from last year. As more people work from home, homes with 4 bedrooms or more sold faster and for more money, selling for 14.2% more than last year with an average sales price of $373,333 and 126 days on the market.
Closed sales increased 38.2% from last year due to rising home prices and low interest rates. Condos were scarce in October (neutral market has 5-6 month-supply of homes). With fewer homes on the market, competition increases sales prices and decreases days on the market. Pending sales rose 13.7% in October and 37% year-to-date. The market days dropped 41.7% to 74. In October, limited supply and increased demand drove the median sales price up 18.8% to $190,000 and the average sales price up $223,723. Contrary to expectations, condo sales above $300,000 rose 91.5% from last year.
As things change, they remain the same. REALTORS must stay abreast of local, regional, and national market changes. Understanding real estate market changes helps sellers decide when to sell and how much. Lack of housing supply is this month’s Market Update’s main takeaway. Homeowners should sell now with a 1.3-month supply of homes.
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