Columbia SC Real Estate and Community News

Jan. 18, 2023

Columbia SC Real Estate Market Update

December 2022

2022 was a turbulent year for the US housing market, as inflation, soaring interest
rates, and elevated sales prices combined to cause a slowdown nationwide.
Affordability challenges continue to limit market activity, with pending home sales
and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-
year, respectively, according to the National Association of REALTORS®
(NAR). Higher mortgage rates are also impacting prospective sellers, many of whom
have locked in historically low rates and have chosen to wait until market conditions
improve before selling their home.

New Listings were down 14.6 percent to 858. Pending Sales decreased 13.9
percent to 840. Inventory grew 38.2 percent to 1,843 units.

Prices moved higher as Median Sales Price was up 9.7 percent to $266,010. Days
on Market increased 60.0 percent to 40 days. Months Supply of Inventory was up
60.0 percent to 1.6 months, indicating that supply increased relative to demand.

Economists predict sales will continue to slow and housing prices will soften in
many markets over the next 12 months, with larger price declines projected in more
expensive areas. However, national inventory shortages will likely keep prices from
dropping too much, as buyer demand continues to outpace supply, which remains
limited at 3.3 months, according to NAR. Even if prices fall, many prospective
buyers will find it difficult to afford a home in 2023, as higher rates have diminished
purchasing power, adding hundreds of dollars to monthly mortgage payments.

Information courtesy of CMLS*

Dec. 21, 2022

Columbia SC Real Estate Market Update

November 2022

Housing affordability continues to be a major roadblock for market participants, with
mortgage rates more than double compared to this time last year. Buyers are
delaying home purchases in hopes rates will drop, while many sellers are holding off
on listing their homes due to weakening buyer demand, unwilling to trade in their
current lower rates for significantly higher borrowing costs on their next property. As
a result, existing-home and pending home sales have continued to slow as we move
into winter.

New Listings were down 22.1 percent to 988. Pending Sales decreased 28.1
percent to 850. Inventory grew 47.9 percent to 2,119 units.

Prices moved higher as Median Sales Price was up 11.7 percent to $260,285. Days
on Market increased 65.2 percent to 38 days. Months Supply of Inventory was up
80.0 percent to 1.8 months, indicating that supply increased relative to demand.

With home sales down, nationwide housing inventory was at 3.3 months’ supply
heading into November, up from 2.4 months from this time last year, according to
the National Association of REALTORS®. Although buyers have more options to
choose from, home prices remain high, and soaring borrowing costs have caused
monthly payments to increase significantly, with the average homebuyer paying
77% more on their loan per month compared to the same period a year ago,
according to Realtor.com.

Information courtesy of CMLS*

Nov. 18, 2022

Columbia SC Real Estate Market Update

October 2022

Existing home sales declined nationwide for the eighth consecutive month, falling
1.5% as of last measure, according to the National Association of REALTORS®
(NAR), with sales down nearly 24% from the same period last year. Pending home
sales also declined, dropping 10.9% month-to-month, exceeding economists’
expectations. Stubbornly high inflation and soaring borrowing costs have eroded
buyer purchasing power and have caused the market to cool rapidly this year.

New Listings were down 24.0 percent to 1,150. Pending Sales decreased 25.5
percent to 1,004. Inventory grew 44.4 percent to 2,154 units.

Prices moved higher as Median Sales Price was up 10.2 percent to $258,725. Days
on Market increased 40.0 percent to 28 days. Months Supply of Inventory was up
63.6 percent to 1.8 months, indicating that supply increased relative to demand.

The US housing market is undergoing a major shift, and affordability continues to be
an obstacle for buyers and sellers. Mortgage rates have doubled since March, and
home prices remain elevated due to a limited supply of homes, although price gains
are slowing at a quickening pace. As a result, many homeowners are waiting until
market conditions improve to sell their home, while other sellers are increasingly
cutting prices and offering concessions to attract a greater number of buyers.

Information courtesy of CMLS*

Oct. 17, 2022

Columbia SC Real Estate Market Update

September 2022

The U.S. real estate market continues to slow as we move into fall, as rising
consumer prices and higher mortgage interest rates squeeze homebuyer budgets
and cool activity. With inflation showing little sign of abating, the Federal Reserve
implemented another 75-basis-point hike in September, marking the third such rate
increase this year. The cost of borrowing has reached multi-year highs on everything
from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the
first time since 2008, causing existing home sales to decline for the seventh
consecutive month.

New Listings were down 12.9 percent to 1,373. Pending Sales decreased 12.3
percent to 1,197. Inventory grew 39.2 percent to 2,109 units.

Prices moved higher as Median Sales Price was up 15.5 percent to $271,462. Days
on Market increased 42.1 percent to 27 days. Months Supply of Inventory was up
54.5 percent to 1.7 months, indicating that supply increased relative to demand.

Affordability challenges have priced many buyers out of the market this year, and
buyers who do succeed in purchasing a home are finding that the costs of
homeownership have increased significantly, with monthly mortgage payments
more than 55% higher than a year ago, according to the National Association of
REALTORS®. Inventory remains lower than normal, and as the market continue to
shift, experts project homes will begin to spend more days on market and price
growth will slow in the months ahead.

Information courtesy of CMLS*

Sept. 15, 2022

Columbia SC Real Estate Market Update

August 2022

Summer 2022 has been a season of change for the U.S. real estate market. With
housing affordability at a 33-year low, existing-home sales have continued to soften
nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last
measure, according to the National Association of REALTORS® (NAR). Pending
home sales have also continued to decline, while new listings have steadily
increased, with unsold inventory reaching 3.3 months’ supply at the start of August.
The pullback in demand has been particularly hard on homebuilders, causing new home
sales and construction to slow.

New Listings were down 1.0 percent to 1,634. Pending Sales decreased 8.0 percent
to 1,388. Inventory grew 41.5 percent to 2,082 units.

Prices moved higher as Median Sales Price was up 20.3 percent to $276,790. Days
on Market increased 22.2 percent to 22 days. Months Supply of Inventory was up
45.5 percent to 1.6 months, indicating that supply increased relative to demand.

Inflation, higher interest rates, and fears of a potential recession have taken a toll on
buyers and sellers this summer, leading many people to stay on the sidelines to see
what will happen with the market. But some experts, including NAR Chief Economist
Lawrence Yun, believe the worst of inflation may be over. Although sales prices
remain up from this time last year, price growth is expected to moderate in the
months ahead as the market continues to shift in a more buyer-friendly direction.

Information courtesy of CMLS*

Aug. 16, 2022

Columbia SC Real Estate Market Update

July 2022

The U.S. housing market has continued to cool, as rising mortgage rates and record-high
sales prices have stifled affordability, weakening demand and pricing out a
multitude of buyers. Nationally, median household income has failed to keep pace
with increasing mortgage payments, with the costs of buying a home about 80%
more expensive now than they were just three summers ago, according to the
National Association of REALTORS® (NAR). As more and more prospective buyers
find their home purchase plans delayed, many are turning to the rental market,
where competition has intensified due to increased demand.

New Listings were down 16.2 percent to 1,621. Pending Sales decreased 14.5
percent to 1,306. Inventory grew 32.6 percent to 1,982 units.

Prices moved higher as Median Sales Price was up 20.0 percent to $274,818. Days
on Market increased 23.5 percent to 21 days. Months Supply of Inventory was up
36.4 percent to 1.5 months, indicating that supply increased relative to demand.

At a time of year when homebuying activity is typically very strong, soaring
homeownership costs have caused home sales to decline nationwide for the fifth
consecutive month, with existing-home sales falling 5.4% month-to-month and
14.2% year-over-year as of last measure, according to NAR. But there is a bright
spot. Inventory of existing homes has continued to climb this summer, with 1.26
million homes available at the beginning of July, equivalent to a 3 months’ supply.
And despite the summer slowdown, homes are still selling quickly, with the typical
home staying on market an average of 14 days.

Information courtesy of CMLS*

 

July 14, 2022

Columbia SC Real Estate Market Update

June 2022

Rising inflation, soaring home prices, and increased mortgage interest rates have
combined to cause a slowdown in the U.S. housing market. To help quell inflation,
which reached 8.6% as of last measure in May, the Federal Reserve raised interest
rates by three quarters of a percentage point in June, the largest interest rate hike
since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching
6%, have exacerbated affordability challenges and rapidly cooled demand, with
home sales and mortgage applications falling sharply from a year ago.

New Listings were up 11.0 percent to 1,956. Pending Sales increased 1.1 percent to
1,432. Inventory grew 40.3 percent to 1,764 units.

Prices moved higher as Median Sales Price was up 20.0 percent to $282,000. Days
on Market increased 10.0 percent to 22 days. Months Supply of Inventory was up
44.4 percent to 1.3 months, indicating that supply increased relative to demand.

With monthly mortgage payments up more than 50% compared to this time last
year, the rising costs of homeownership have sidelined many prospective buyers.
Nationally, the median sales price of existing homes recently exceeded $400,000 for
the first time ever, a 15% increase from the same period a year ago, according to
the National Association of REALTORS®. As existing home sales continue to soften
nationwide, housing supply is slowly improving, with inventory up for the second
straight month. In time, price growth is expected to moderate as supply grows; for
now, however, inventory remains low, and buyers are feeling the squeeze of higher
prices all around.

Information courtesy of CMLS*

June 20, 2022

Columbia SC Real Estate Market Update

May 2022

After two years of record-setting activity, there are signs the housing market might
be cooling. High home prices and a surge in mortgage interest rates are slowing
buyer activity, with home sales declining for the third consecutive month under the
weight of soaring homeownership costs. The National Association of REALTORS®
(NAR) reports existing home sales were down 2.4% from the previous month, while
pending sales fell 3.9% as of last measure, extending the trend of recent months.
Economists predict sales will continue to soften in the near future, which may put
downward pressure on home prices.

New Listings were down 1.9 percent to 1,638. Pending Sales decreased 2.9 percent
to 1,514. Inventory grew 23.9 percent to 1,322 units.

Prices moved higher as Median Sales Price was up 20.0 percent to $270,000. Days
on Market decreased 16.0 percent to 21 days. Months Supply of Inventory was up
25.0 percent to 1.0 months, indicating that supply increased relative to demand.

The slowdown in sales has provided a much-needed lift to housing supply, with
inventory up 10.8% from the previous month according to NAR, although supply
remains down 10.4% compared to this time last year, with only 2.2 months’ supply
of homes at the current sales pace. As the nation continues to explore ways to solve
the ongoing housing shortage, estimated at 5.5 million homes, the Biden
administration recently unveiled the Housing Supply Action Plan, which aims to
expand housing access through a number of administrative and legislative actions
and help relieve the nation’s housing crisis over the next 5 years.

Information courtesy of CMLS*

May 16, 2022

Columbia SC Real Estate Market Update

April 2022

The average 30-year fixed rate mortgage exceeded 5% in April, the highest level
since 2011, according to Freddie Mac. The recent surge in mortgage rates has
reduced the pool of eligible buyers and has caused mortgage applications to
decline, with a significant impact on refinancing applications, which are down more
than 70% compared to this time last year. As the rising costs of homeownership
force many Americans to adjust their budgets, an increasing number of buyers are
hoping to help offset the costs by moving from bigger, more expensive cities to
smaller areas that offer a more affordable cost of living.

New Listings were down 3.9 percent to 1,666. Pending Sales decreased 8.4 percent
to 1,466. Inventory grew 11.1 percent to 1,210 units.

Prices moved higher as Median Sales Price was up 17.8 percent to $265,100. Days
on Market decreased 20.7 percent to 23 days. Months Supply of Inventory was up
12.5 percent to 0.9 months, indicating that supply increased relative to demand.

Affordability challenges are limiting buying activity, and early signs suggest
competition for homes may be cooling somewhat. Nationally, existing home sales
are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5
straight months of under contract declines, according to the National Association of
REALTORS®. Inventory remains low, with only 2 months supply at present, and
home prices continue to rise, with the median existing home at $373,500, a 15%
increase from this time last year. Homes are still selling quickly, however, and
multiple offers are common in many markets.

Information courtesy of CMLS*

April 19, 2022

Columbia SC Real Estate Market Update

March 2022

Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as
buyers struggled to find a home amid rising prices and historic low inventory.
Pending sales are also down, declining 4.1% as of last measure, according to the
National Association of REALTORS®. Builders are working hard to ramp up
production—the U.S. Census Bureau reports housing starts are up 22.3%
compared to a year ago—but higher construction costs and increasing sales prices
continue to hamper new home sales, despite high demand for additional supply.

New Listings were up 0.3 percent to 1,621. Pending Sales decreased 0.3 percent to
1,586. Inventory shrank 7.2 percent to 1,015 units.

Prices moved higher as Median Sales Price was up 17.2 percent to $255,000. Days
on Market decreased 22.9 percent to 27 days. Months Supply of Inventory was
down 12.5 percent to 0.7 months, indicating that demand increased relative to
supply.

Across the country, consumers are feeling the bite of inflation and surging mortgage
interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4
percent since January and the highest rate in more than 3 years. Monthly payments
have increased significantly compared to this time last year, and as housing
affordability declines, an increasing number of would-be homebuyers are turning to
the rental market, only to face similar challenges as rental prices skyrocket and
vacancy rates remain at near-record low.

Information courtesy of CMLS*