A foreclosure backlog could slow the Columbia SC housing recovery. All states are not backed up with foreclosures in waiting, some are, some aren't. This backlog, coupled with the continued problem of homeowners being underwater on their mortgage, could mean the housing uptick we've seen over the past year could be confronted with a slowdown.
The Columbia SC housing recovery continues to also be hampered by record low inventory of homes on the market for sale. Many sellers are either holding out for higher prices later, or, as mentioned before, are dealing with mortgages that are still underwater because values fell so far during the previous real estate bust.
We have more news and articles as they relate to the Columbia SC housing situation at our Columbia SC Real Estate News category to your right under the Columbia SC Real Estate Categories.
Columbia SC home sales in March continued to show signs of improvement, in spite of the tight housing supply that is plaguing the market. Home sales are somewhat stuck due to the limited number of homes available to buy, which is somewhere near 17 percent below year-ago levels.
Some home owners are still hesitant to sell, noticing the recent price increases and hoping for more.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7.0 percent above March 2012 when it was 98.8. Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
Columbia SC Home Sales May Decline In Future Months
Columbia SC home sales are listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing, so this would usually be for closed sales in April and May.
With limited inventory at the low end and fewer foreclosures, we might see flat or even declining existing Columbia SC home sales. The key is that the number of conventional sales is increasing while foreclosures and short sales decline – and that is a sign of an improving market, even if total sales decline.
The national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low, but trend up slowly and reach 4 percent in the fourth quarter. The housing shortage is expected to continue, which means this cycle of price increases and lower inventory may go on for some time to come.
For more on news as it affects Columbia SC home sales, check out the Columbia SC Real Estate News section under Columbia SC Real Estate Categories in the column to your right.
It's no surprise that things have been looking up for the Columbia SC housing market for several months now. But solid statistics now show that people are just as optimistic about mortgage rates as they are the Columbia SC housing market.
An analysis of Fannie Mae's monthly telephone survey of just over 1,000 homeowners and renters shows that views on the Columbia SC housing market stayed almost the same from February to March, which is good because they're optimistic.
Fannie Mae conducts its telephone survey each month to assess the attitudes of Americans toward owning and renting a home, home and rental price changes, homeowner distress, the economy, and household finances. Both homeowners and renters are contacted for the survey which includes more than 100 questions.
71% of individuals surveyed believe that now is the time to buy a new home, while 26% believe it's a good time to sell; this is nearly double the percentage from this point last year.
Growing Skepticism Towards the Columbia SC Housing Market
There seems to be a growing skepticism towards the Columbia SC housing market staying this good for a while. There was a slight bump in the percentage of those surveyed who believe that home prices will increase over the next 12 months, and while those who think prices will go down hasn't adjusted much, those who believe prices will stay the same has decreased five percent in the past three months.
The survey shows a string of 17 positive one-year-ahead home price expectations through March, the average expected gains have remained below 3 percent. By comparison, main measures of national home prices in early 2013 posted year-over-year gains of at least double or triple that figure.
Based on this survey, it seems people are aware the Columbia SC housing market is getting better but are also concerned with it not staying this good for the rest of the year. People are speculating that the Columbia SC housing market may get more competitive by the end of the year.
Many previously foreclosed Columbia SC home buyers are now wanting back in to the home market. In what economists call "The Boomerang Buyers", many who lost their homes to foreclosure are now wanting to buy again.
With more and more people who previously lost their home to foreclosure getting back in to an already crowded market, it's no wonder why would-be Columbia SC home buyers are finding there is less and less available inventory of homes to choose from when they are looking for that perfect home.
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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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