Columbia SC Home Values Seen Outpacing the Boom

Columbia SC home values are expected to continue upward over the next 5 years.Experts and economists agree, Columbia SC home values are expected to end 2013 up an average of 4.6 percent, and rise cumulatively by 22 percent over the next 5 years. These percentage increases come from a nationwide panel of economists, real estate experts and market professionals in every market, not just the Columbia SC market.

Columbia SC Home Values Expected to Continue Upward

Survey respondents predicted Columbia SC home values will rise another 4.2 percent on average in 2014, before moderating somewhat to annual appreciation rates between 3.6 percent and 3.8 percent for 2015, 2016 and 2017. On average, panelists predicted Columbia SC home values to rise 4.1 percent annually from 2013 through 2017, exceeding the pre-housing bubble (1987-1999) average annual appreciation rate of 3.6 percent.

This is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey's inception three years ago. "The panel is quite bullish on home prices near-term, considering a pre-bubble average appreciation rate of 3.6 percent per year," said Zillow Chief Economist Dr. Stan Humphries. "That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong growth in Columbia SC home values this year. This is being fueled by tighter-than-normal inventory of homes for-sale and robust demand attributable to high affordability and a stronger general economy."

The most optimistic group of panelists predicted a 6.1 percent increase in Columbia SC home values in 2013, on average, while the most pessimistic predicted an average increase of 3 percent. Through 2017, panelists predicted cumulative home value changes of 22 percent, on average. Expectations for cumulative home value change projections ranged from 34.2 percent among the most optimistic quartile to 11.7 percent among the most pessimistic, on average.

The first quarter 2013 Zillow Home Price Expectations Survey asked the panel to indicate their view of a reasonable timeframe for "winding-down" government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The majority of panelists (59 percent) indicated that a reasonable and appropriate timeframe for winding-down the GSEs is within the next five years. On the opposite ends of the spectrum, 13 percent suggested a timeframe within the next two years, and 10 percent said they believe a period of more than 10 years is sensible.

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