Columbia SC Real Estate and Community News

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*

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*