The housing market around the country has been crazy since the beginning of the pandemic, and that’s no different in South Carolina. If you’re looking to buy or sell a home right now, it’s important to understand how the current conditions of the market affect your real estate investment. Whether you’re looking at Charleston houses for sale or putting your Columbia home for sale, read on to learn a little more about how the market may impact you personally.
Home prices are high, but not too high
The cost of homes increased all over the country over the last two years, including in South Carolina. That means 2020 and 2021 were great times to sell a home, but not great times to buy, particularly for those on a budget. Not only have homes been more expensive, but many people were forced to offer much higher than the list price or chose to waive appraisal to avoid contingencies, making themselves more desirable to the seller.
While South Carolina’s housing market certainly isn’t back to where it was pre-pandemic, home prices this fall have actually fallen from where they were in the spring and summer. That’s a good sign that things are returning to normal.
Lack of Inventory
Why are sellers about to charge an arm and a leg for homes? A lot of it has to do with simple supply and demand. Because more people wanted to buy houses than were selling, homes became a hot commodity and many people selling their homes were able to name their price. The good news is things seem to be leveling out in this area as well, possibly even quicker than in other parts of the country. Even areas like Myrtle Beach, which is the hottest market in the state, have seen a slowdown in home sales, meaning the playing field is beginning to even out between buyers and sellers.
Another factor that impacted the housing market greatly this year is the record-low mortgage rates we experienced. These low rates were the reason many buyers were not deterred from making exorbitant offers and were undoubtedly one of the main reasons the balance of sellers and buyers was so thrown off. These rates are projected to increase into the end of 2021 and the beginning of 2022, making them a little less desirable for potential homeowners, but hopefully leading to more affordable real estate and a less competitive market.
As we look to 2022, it’s hard to predict what is in store for the South Carolina real estate market. The pandemic is slowly coming to an end, and while it has impacted much of what we do and how we’ll continue to live in the future, the housing market is likely to bounce back, giving sellers and buyers more equal footing. Aside from all the turmoil, real estate still remains one of the best ways to invest money and build wealth, increasing the security your family has for the future.