Columbia SC Real Estate and Community News

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*

March 18, 2022

Columbia SC Real Estate Market Update

February 2022

The U.S. real estate market remains hot ahead of the spring selling season, with
existing home sales up 6.7% as of last measure, according to the National
Association of REALTORS®. Experts attribute the growth in sales to an uptick in
mortgage interest rates, as buyers rushed to lock down their home purchases
before rates move higher. Mortgage rates have increased almost a full percentage
point since December, with the average 30-year fixed-rate mortgage briefly
exceeding 4% in February, the highest level since May 2019.

New Listings were up 0.6 percent to 1,362. Pending Sales decreased 3.5 percent to
1,347. Inventory shrank 16.5 percent to 1,054 units.

Prices moved higher as Median Sales Price was up 19.2 percent to $250,000. Days
on Market decreased 23.1 percent to 30 days. Months Supply of Inventory was
down 20.0 percent to 0.8 months, indicating that demand increased relative to
supply.

Inventory was at an all-time low of 860,000 as February began, down 17% from a
year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief
Economist at the National Association of REALTORS®, much of the current housing
supply is concentrated at the upper end of the market, where inventory is
increasing, while homes priced at the lower end of the market are quickly
disappearing, leaving many first-time buyers behind. The shortage of homes is
boosting demand even further, and with bidding wars common in many markets, it’s
no surprise sales prices continue to soar.

Information courtesy of CMLS*

Feb. 17, 2022

Columbia SC Real Estate Market Update

January 2022

The 2022 real estate market begins where 2021 left off, in which existing home sales
reached their highest level since 2006, with the National Association of REALTORS®
reporting sales were up 8.5% compared to the previous year as homebuyers rushed
to take advantage of historically low mortgage rates. Home sales would’ve been
even greater were it not for soaring sales prices and a shortage of homes for sale in
many markets, forcing a multitude of buyers to temporarily put their home purchase
plans on hold.

New Listings were down 11.9 percent to 1,158. Pending Sales increased 6.3 percent
to 1,326. Inventory shrank 23.9 percent to 1,086 units.

Prices moved higher as Median Sales Price was up 14.6 percent to $239,500. Days
on Market decreased 26.3 percent to 28 days. Months Supply of Inventory was
down 27.3 percent to 0.8 months, indicating that demand increased relative to
supply.

For many buyers, 2022 marks a new opportunity to make their home purchase
dreams a reality. But it won’t be without its challenges. Inventory of existing homes
was at 910,000 at the start of the new year, the lowest level recorded since 1999,
according to the National Association of REALTORS®, and competition remains
fierce. Affordability continues to decline, as inflation, soaring sales prices, and
surging mortgage interest rates reduce purchasing power. The sudden increase in
rates and home prices means buyers are paying significantly more per month
compared to this time last year, which may cause sales to slow as more buyers
become priced out of the market.

Information courtesy of CMLS*

 

Jan. 14, 2022

Columbia SC Real Estate Market Update

December 2021

The 2021 housing market was one for the history books. After three consecutive
months of increases recently, existing home sales are on pace to hit their highest
level in 15 years, with an estimated 6 million homes sold in 2021 according to the
National Association of REALTORS®. Sales prices reached new heights, inventory
hit rock bottom, and homes sold in record time, often for well above asking price.
Mortgage rates, which began the year at historic lows, remain attractive, and
homeowners who choose to sell in the coming months can expect to see plenty of
buyer activity due to pent-up demand during the pandemic.

New Listings were down 9.4 percent to 996. Pending Sales increased 0.8 percent to
1,055. Inventory shrank 15.1 percent to 1,286 units.

Prices moved higher as Median Sales Price was up 15.0 percent to $241,565. Days
on Market decreased 33.3 percent to 26 days. Months Supply of Inventory was
down 25.0 percent to 0.9 months, indicating that demand increased relative to
supply.

Looking ahead, experts anticipate many of the housing market trends of 2021 will
continue in 2022, albeit at a more moderate level. Strong buyer demand and
inventory shortages are likely to persist over the next year. Home sales are
projected to remain strong but will be tempered by the limited supply of homes,
higher sales prices, and rising interest rates, with the Federal Reserve planning
multiple rate hikes in the new year. Price growth is expected to slow somewhat as a
result, but affordability will likely remain a top constraint for some homebuyers.

Information courtesy of CMLS*

Dec. 15, 2021

Columbia SC Real Estate Market Update

November 2021

The economy is improving, unemployment is falling, and the U.S. real estate market
remains strong as we head into the holiday season, a period when activity typically
slows as people take time to travel, celebrate, and spend time with loved ones.
Although the market is not as frenetic as was seen earlier this year, buyer demand is
high, bolstered by attractive mortgage rates and a low supply of inventory.

New Listings were up 17.6 percent to 1,278. Pending Sales increased 14.0 percent
to 1,284, the eighth consecutive month of year-over-year gains. Inventory shrank
12.4 percent to 1,412 units.

Prices moved higher as Median Sales Price was up 11.1 percent to $232,160. Days
on Market decreased 32.4 percent to 23 days. Months Supply of Inventory was
down 23.1 percent to 1.0 months, indicating that demand increased relative to
supply.

The most recent data from the National Association of REALTORS® reports the
median single-family existing home sales price rose 16% in the third quarter of this
year to $363,700, with all four regions of the country experiencing double-digit price
growth. In new construction, builder confidence increased in November, surpassing
analyst expectations and rising to 83 on the National Association of Home Builders
(NAHB)/Wells Fargo Housing Market Index (HMI), the highest level since spring,
despite persistent labor and supply chain challenges and a shortage of available
lots.

Information courtesy of CMLS*

Nov. 15, 2021

Columbia SC Real Estate Market Update

October 2021

The U.S. housing market remains robust, with strong activity reported across both
rental and residential housing fronts. Single-family rent prices are increasing rapidly,
as demand for single-family housing and inventory constraints forces some buyers
to rent, increasing competition and pushing rents up across the nation. Meanwhile,
sales of new construction single-family homes recently hit a six-month high, rising
14% to a seasonally adjusted rate of 800,000, according to the latest data from the
U.S. Department of Housing and Urban Development.

New Listings were up 1.4 percent to 1,524. Pending Sales increased 4.8 percent to
1,449, the seventh consecutive month of year-over-year gains. Inventory shrank
17.6 percent to 1,481 units.

Prices moved higher as Median Sales Price was up 15.9 percent to $237,650. Days
on Market decreased 46.2 percent to 21 days. Months Supply of Inventory was
down 21.4 percent to 1.1 months, indicating that demand increased relative to
supply.

As temperatures drop, existing home sales continue to be plentiful, buoyed by
strong demand, low-interest rates, and a slight uptick in new listings in recent
months, according to the National Association of REALTORS®. With interest rates
inching upward, and experts expecting further rate increases on the horizon,
motivated buyers are hoping to lock in their home purchases to take advantage of
what are still historically low rates.

Information courtesy of CMLS*

Oct. 15, 2021

Columbia SC Real Estate Market Update

September 2021

Nationwide, existing home sales were down slightly in August, falling 2% after two
consecutive months of increases, according to the National Association of
REALTORS®. 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 14.9% compared to last year. Declining affordability has had a significant impact
on homebuyers, many of whom have been priced out of the market and are
choosing to wait for sales prices to ease before resuming their home search.

New Listings were up 8.5 percent to 1,575. Pending Sales increased 14.1 percent to
1,465. Inventory shrank 21.0 percent to 1,457 units.

Prices moved higher as Median Sales Price was up 13.2 percent to $237,750. Days
on Market decreased 53.7 percent to 19 days. Months Supply of Inventory was
down 33.3 percent to 1.0 months, indicating that demand increased relative to
supply.

There are signs the market may be shifting, however. New listings have continued to
hit the market, bucking seasonality trends commonly seen in the fall, a time when
listing and sales activity typically slows as children return to school. As inventory
increases, competition for homes may soften, and could even bring a moderation in
sales prices, which, after 114 months of year-over-year gains, would be music to the
ears of homebuyers throughout the country.

Information courtesy of CMLS*

Sept. 22, 2021

Columbia SC Real Estate Market Update

August 2021

The booming U.S. housing market has spilled over to the rental market, which has
seen demand for apartment and single-family rentals skyrocket this year, as high
sales prices and an inadequate supply of available housing have forced many
prospective buyers to rent for the foreseeable future. Increased demand for housing,
along with an improving economy, has competition for rental units soaring, and
landlords are taking note, with the national median rent increasing 11.4% in 2021 so
far, according to Apartment List.

New Listings were up 14.2 percent to 1,657. Pending Sales increased 13.8 percent
to 1,617. Inventory shrank 24.8 percent to 1,395 units.

Prices moved higher as Median Sales Price was up 11.7 percent to $230,000. Days
on Market decreased 60.9 percent to 18 days. Months Supply of Inventory was
down 33.3 percent to 1.0 months, indicating that demand increased relative to
supply.

In new construction, home builders continue to struggle to meet buyer demand, as
housing starts nationwide dropped 7% last month, according to the Commerce
Department. Single-family home construction declined 4.5%, and multi-family home
construction, which includes condos and apartment buildings, was also down,
falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks
continue to challenge builders, with some projects temporarily paused due to
availability and cost of materials.

Information courtesy of CMLS*

Aug. 17, 2021

Columbia SC Real Estate Market Update

July 2021

The White House recently announced additional measures to help struggling
homeowners avoid foreclosure as they exit forbearance, including loan
modifications and payment reductions. Borrowers with federally backed mortgages
can lock in lower interest rates and extend the length of their mortgages. For
borrowers who can’t resume their monthly mortgage, HUD will offer lenders the
ability to provide all eligible borrowers with a 25% principal and interest reduction.

New Listings were up 21.5 percent to 1,950. Pending Sales increased 11.5 percent
to 1,677. Inventory shrank 31.1 percent to 1,365 units.

Prices moved higher as Median Sales Price was up 10.6 percent to $228,625. Days
on Market decreased 63.0 percent to 17 days. Months Supply of Inventory was
down 41.2 percent to 1.0 months, indicating that demand increased relative to
supply.

The National Association of REALTORS® reported inventory of homes for sale
nationwide rose slightly in June as more sellers list their homes, hoping to take
advantage of record-high sales prices across the country. Even with renewed home
seller interest, inventory overall remains 18.8% lower than a year ago, according to
NAR.

Information courtesy of CMLS*