Buying a Columbia SC Home – Think Long Term
Not long ago, buying a Columbia SC home was the best investment you could make. Not only did it provide a place to live, but it provided instant wealth for many homeowners through rapid home-price appreciation. Renting seemed risky. If you didn’t own a Columbia SC home, you’d miss out on equity buildup that would bankroll a move to a bigger, better home.
In this market, the realistic way to look at buying a Columbia SC home is to secure a place you want to live. Buying a Columbia SC home doesn’t guarantee you’ll make a big return on your investment. You might if you stay long enough. Over the long term, home-price appreciation usually outpaces the inflation rate. However, this varies from one locale to the next.
If Your Columbia SC Home Doesn’t Work Out
If you buy a Columbia SC home that you find out doesn’t work for you and sell it again within a year or so, there’s a chance you’ll lose money when you take into account the costs of buying and selling.
No one knows for sure when the economy will substantially improve. Last year, some economists predicted a double-dip recession. That appears to be less risky at the moment. In the fourth quarter of 2011, the nation’s economic output grew at an annualized rate of 2.8 percent, which is not recession territory, but is not considered good enough by some economists.
Columbia SC Home Market Prediction
Will 2012 be the turnaround year for housing? Lawrence Yun, the National Association of Realtor’s (NAR) chief economist, thinks that the combination of increasing home sales, record-low interest rate and low home prices “demonstrates a market in recovery.”
Other good news for anyone thinking of buying a Columbia SC home is the recent increase in consumer confidence and the decrease in the inventory of homes for sale to a level not seen since March 2005, according to NAR. Yun thinks the drop in inventory will contribute to price stabilization and possible modest price growth in the near future.
Problems for Columbia SC Home Buyers
There is pent-up demand on both the buy and sell side. One problem for those considering buying a Columbia SC home has been the lack of quality inventory. That may improve this year as some sellers decide they’re tired of waiting for a better time to sell.
Buyers have the advantage of low interest rates and home prices. Buyers considering buying a Columbia SC home who can find the right house and stay put for five to 10 years will probably be happy they bought now.