This week's "Slap in the Face" Award goes to our devoted public servants in Washington, who've decided the Columbia SC housing market isn't moving fast enough. To correct this, they're lowering lending requirements, and some mortgages will not require a down payment… again.
Really? We mean, REALLY?
Previously owned Columbia SC home sales climbed in September to the highest level in a year, pointing to growing confidence in the U.S. economy as employment firms.
Nationwide, purchases advanced 2.4 percent to a 5.17 million annual rate. Demand was up 1.9 percent compared with the same month last year before adjusting for seasonal patterns.
Of all Columbia SC home sales, cash transactions accounted for about 24 percent, down from 33 percent 12 months earlier, the report showed. Investors, 63 percent of whom paid cash, represented 14 percent of the market last month, down from 19 percent in September 2013.
Distressed sales, comprised of foreclosures and short sales, in which the lender agrees to take less than the balance of the mortgage, made up 10 percent of the total.
"The traditional Columbia SC home buyer — the person who takes out a mortgage loan to buy a Columbia SC home — seems to be growing in strength over the past year and we expect that to continue,” according to Robert Stein, deputy chief economist at First Trust Portfolios LP in Wheaton, Illinois, who is among the best forecasters of existing home sales over the past two years, according to data compiled by Bloomberg.
To get more news on Columbia SC home sales, including more articles and news about Columbia SC real estate in general, check out our other articles by clicking on the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.
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Columbia SC home prices increased in August, yet the pace of these gains continues to slow, helping to improve affordability for potential buyers.
Real estate data provider CoreLogic said recently that Columbia SC home prices rose 6.4 percent in August compared with a year ago. That marks a decline from an annual gain of 6.8 percent in July. Columbia SC home prices had been rising as much as 12 percent yearly toward the end of last year.
Columbia SC Home Prices Not Adjusted for Seasonality
Prices rose 0.3 percent in August from July. But CoreLogic's monthly figures aren't adjusted for seasonality, such as buying that occurs during warmer weather.
Sales struck a plateau in the middle of last year and have remained subdued for much of 2014. As sales have slowed, so have price gains. That should eventually make it easier for would-be buyers to afford a Columbia SC home.
As the pace of price gains has slowed, so have sales of existing homes.
Home Prices Dropping Nationwide Too
Nationwide, the National Association of Realtors reports that purchases fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August. Sales fell from a July rate of 5.14 million, a figure that was revised slightly downward. Overall, the pace of home sales has dropped 5.3 percent year-over-year.
Economists associate annual sales of 5.5 million with a healthy market.
The NAR also said that median sales prices had risen 4.8 percent over the past 12 months to $219,800, but that average slipped slightly in August compared to prices in July and June.
Follow news on Columbia SC home prices and the housing recovery right here by periodically checking back in the Columbia SC Real Estate News section of our website under Columbia SC Real Estate Categories.
After falling for two consecutive months, Columbia SC new home sales jumped 18 percent in August to the highest level since 2008.
The jump in Columbia SC new home sales for August comes during the same month when housing construction slumped. Housing starts fell 14.4 percent in August, the biggest one-month drop in more than a year. Even so, home construction in July reached the highest level in almost seven years.
For the companies that build new homes, optimism is rising.
A recent report from the National Association of Home Builders said its builder confidence index rose for he fourth consecutive month in September, to the highest level since November 2005.
Columbia SC New Home Sales Catching Up With Builder Sentiment
While this report is prone to some volatility and revisions, it's promising to see Columbia SC new home sales finally begin to catch up with home-builder sentiment, which is at its highest level in almost a decade
The monthly builder survey covers current sales conditions, prospective buyer traffic and future sales expectations. All its metrics rose in September, according to the NAHB.
Why is this news about Columbia SC new home sales so important?
Home building, which accounts for about 3 percent of gross domestic product compared with about 12 percent for capital spending, matters because of its "broader linkages that will feed back into the economy" to spur household spending, wealth, hiring, and confidence.
We'll continue to keep a sharp eye on trends that affect Columbia SC new home sales, and report any and all trends in future updates here on our website.
In the meantime, find more current Columbia SC real estate news articles under our Columbia SC Real Estate News section under the Columbia SC Real Estate Categories to your right.
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We've featured articles here on our site in the past about the pro's and con's of getting Columbia SC home warranties. But just recently, Consumer Reports released an article discussing why you should avoid Columbia SC home warranties, since even the best ones typically aren't worth the cost, and they advise putting your money in the bank instead.
The state of New Jersey recently filed a lawsuit against a home warranty company stating that warranty claims are denied because the company says the problem was pre-existing. Or, the claim is denied because the consumer can't prove that a broken item was properly maintained. They say they've seen consumers raise these issues in the past in connection with home warranties and other types of service contracts.
The state said the company, which sold coverage in at least 25 states, denied claims even when technicians said covered products had been property maintained or that a problem wasn't pre-existing or caused by a lack of maintenance. For some claims, the state said, the company demanded that customers provide years of maintenance records.
While the coverage required the company to replace products that couldn't be repaired, the state said the company offered consumers cash "buyouts" for hundreds of dollars less than it would cost to replace the item. And in some cases, local technicians dispatched to handle claims refused to respond, saying the company failed to pay them for their previous service.
Columbia SC Home Warranties Not Recommended By CR
Consumer Reports now recommends avoiding Columbia SC home warranties and service contracts, even those provided by companies with no record of engaging in any shenanigans. The reason is that coverage for contracts that cover homes and cars, for example, can cost hundreds of dollars.
Instead, CR suggests putting the money you otherwise would use to buy that service contract into a savings account or product repair-and-replacement fund.
Many credit card issuers automatically extend the manufacturer's warranty for an extra year or so for most products you buy using their card. Many companies also have goodwill programs and service campaigns that provide free or low-cost repairs or product replacement for items that fail in an unreasonably short time.
If an item falls under a safety-related defect, manufacturers generally must initiate recalls and provide free repairs, which are not even covered under Columbia SC home warranties.
Consumer Reports offers an "Extended Warranty Buying Guide" here.
While we don't necessarily endorse Consumer Reports in their stand against Columbia SC home warranties or companies, we felt obligated to advise you of their recommendation, and let you make your own intelligent decision in this matter.
Stay abreast of all the news affecting Columbia SC housing and real estate right here at our website. More articles can be found in the Columbia SC Real Estate section, or the Columbia SC Real Estate News section, both to your right under Columbia SC Real Estate Categories.