Columbia SC Real Estate News

Pending Columbia SC home sales slipped a bit in OctoberCooler temperatures in October didn't really seem to affect Columbia SC home sales, as the housing market continues to post positive metrics.

There were signs of continued resilience in the Columbia SC housing market last month. Most of the metrics tracked by HousingPulse were positive for October and the few negative metrics appear to be seasonal.

Pending Columbia SC home sales slipped just a bit in October, reflecting a declining trend there amidst mixed numbers elsewhere.

Homes stayed on the market for shorter periods of time with increasing numbers of offers on those non-distressed properties. The average-time-on-market for non-distressed properties was 8.9 weeks in October, while the national average number of offers on non-distressed properties last month was 2.1.

Overall, the October data revealed a slowdown in homebuyer traffic and a three-month slide in the sales-to-list price ratio for non-distressed properties. Both of these trends were seen last fall and appear to be seasonal developments.

Government Shutdown Affects October Columbia SC Home Sales

"The government shutdown in the first half of October sidelined some potential buyers," said NAR chief economist Lawrence Yun. "In a survey, 17 percent of Realtors reported delays in October, mostly from waiting for the IRS income verification for mortgage approvals."

While the market could still rebound from October's level — the lowest since last December — limited inventory and deteriorating affordability conditions stand in the way. The threat of another possible government shutdown presents even more concern for the future of Columbia SC home sales.

Get more Columbia SC home sales information, along with other Columbia SC real estate news and information by clicking the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Statistics from the Mortgage Bankers Association indicate an increase in Columbia SC new home sales in October.

Columbia SC new home sales were up 11 percent in October versus September figuresMBA's Builder Application Survey for October shows mortgage applications for Columbia SC new home sales increased by 11 percent from September. The change doesn't include any adjustments for seasonal patterns.

Breaking the data down by product type: Conventional loans accounted for 67.5 percent of loan applications in October, while loans backed by the Federal Housing Administration (FHA) made up 17.8 percent. Mortgages made through the Department of Veterans Affairs accounted for 13.8 percent, and loans made through the U.S. Department of Agriculture and the Rural Housing Service composed 0.9 percent.

Using information from the survey as well as assumptions regarding market coverage and other factors, MBA estimates sales of new single-family homes nationwide ran at a seasonally adjusted annual rate of 509,000 in October. Unadjusted, the group estimates sales totaled 40,000.

The average loan size for Columbia SC new home sales was up nearly $5,000 in October, increasing to $294,480.

Columbia SC New Home Sales Up – Sellers Scaling Back

With Columbia SC new home sales up, sellers of previously owned homes this year have been aggressive in pricing their listings on the market. However, new data from technology-powered broker Redfin shows more and more sellers have had to dial back their expectations.

Only about one in seven sellers had to resort to reducing their listing price in order to move their property, Redfin reported. However, that number has steadily risen to one in four as of September.

Hope isn't lost for sellers looking to get as much as they can out of their home, though—Redfin's data for October shows slightly fewer homes taking a price cut, ending a seven-month streak.

With home prices now increasing at a less dramatic rate than earlier this year, sellers and agents are better able to price homes accurately without having to make adjustments later. Now that we're entering the winter months, sellers tend to be in less of a rush to sell at this time of the year, so price drops are expected to be less common for now.

To stay abreast of Columbia SC new home sales news, as well as news affecting Columbia SC re-sale homes, check out our other news articles by clicking on the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

The down side of rising home prices and tighter inventories is the decline of Columbia SC housing affordability.

A new study from Interest.com found that the American dream of owning a home is slipping out of reach of more and more families.

Columbia SC Housing Prices Outpace Income

Columbia SC housing affordability is slipping away for more and more familiesAlong with robust Columbia SC home prices, rising interest rates combined with anemic increases in family income are forming a near perfect storm of unaffordability.

Prices have risen so much that a median-priced home is no longer affordable for the majority of families earning a median income.

“The simple fact is that the very small improvement Americans have seen in their paychecks hasn't kept pace with a jump in home prices and mortgage rates,” according to Mike Sante, managing editor of Interest.com.

On average, home prices rose 12 to 16 percent over the last year, while incomes rose only by about 3 percent.

"Rising prices mean the house that a family with an average income can afford has shrunk," Sante says. "For many, home ownership is largely out of reach of median-income households."

Mortgage rates, although still low by most historic standards, are about a point higher than they were last winter and spring, contributing to the decline in home affordability.

The average cost of a 30-year, fixed-rate home loan is 4.43 percent in this study, up from 3.70 percent last year, although rates have dropped back down in recent weeks since the study was conducted.

To conduct its annual Home Affordability Study, Interest.com gathered city-specific data on median home prices and incomes, average property taxes and insurance costs, as well as consumer debt and mortgage rates.

To stay on top of the Columbia SC housing recovery, check out our other articles and tips by clicking on the Columbia SC Real Estate News link to your right.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

After taking a break in the summer, Columbia SC home prices got back up to strength in September, according to statistics reported by DataQuick in the company's monthly Property Intelligence Report. Other metrics, however, weakened.

Columbia SC Home Prices See Rapid Growth

Columbia SC home prices see increases widen in SeptemberDataQuick reported that Columbia SC home prices "resumed at a rapid rate of growth in September and spread to all" of its 42 reporting counties on a monthly, quarterly, and yearly basis. With the exception of July and August, DataQuick says growth of Columbia SC home prices has spread consistently, just as it has around the country, in the last 12 to 18 months, with all reporting markets seeing growth "in excess of their long term average."

There has been an increase in Columbia SC home prices and overall sales as homeowners with negative equity are gradually swept toward a position of positive equity, a decrease in foreclosures as homeowners have the equity to sell and avoid default, and an increase in demand for home equity lines of credit as borrowers look to tap into increased equity from home price growth.

Other factors DataQuick says to look out for are: "Continued single-family rental demand driven by decreases in home affordability, sustained risk of Columbia SC home prices seeing corrections and stringent mortgage credit standards, and an increase in purchases by investors" driven by the two preceding factors.

The risk of a "substantial correction" runs especially high as growth rates remain elevated, especially since growth isn't supported by steady economic fundamentals.

In the past, moderate economic fundamentals have supported long term growth of Columbia SC home prices with rates of three to four percent respectively. While generally positive, current economic drivers are weaker than those experienced in most previous expansions, leading to considerable uncertainty about future economic prospects.

We'll keep you informed on any news that might affect Columbia SC home prices right here at this website. For continuous updates regarding Columbia SC home prices, click the Columbia SC Real Estate News link to your right.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Government shutdown does not affect Columbia SC home pricesColumbia SC home prices were largely unaffected by the 16 day government shutdown.

Aside from asking prices, the housing market remains uncomfortably tied to Washington and its budget mess, such as the shutdown's effect on mortgage processing for home purchases and the potential effect of a default on the housing market and economy.

Other Factors Affect Columbia SC Home Prices

It's difficult to figure out how the shutdown may or may not have hurt Columbia SC home prices when there's a whole host of other factors – including seasonal changes, rising interest rates and a (slowly) improving job market – to contend with.

Nationally, asking home prices are up 1.0% between September and the first half of October, seasonally adjusted. This partial month-over-month increase is roughly in line with the month-over-month increases over the past few months. Before the shutdown started, several factors were already cooling down price gains, including expanding inventory, higher mortgage rates, and declining investor activity. Therefore, comparing how much Columbia SC home prices have risen or fallen in October with previous months can't, by itself, show whether the shutdown has directly affected Columbia SC home prices one way or the other.

But the nationwide housing recovery still depends on what the federal government will do in the coming months about Fed tapering, new budget negotiations, and the reform of Fannie Mae and Freddie Mac.

We'll be keeping a close eye on what Washington does (or doesn't do) in the coming days, weeks and months ahead, and let you know right here how we see it all affecting Columbia SC home prices, and the Columbia SC housing recovery in general.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.