The share of would-be Columbia SC home buyers who think now is a good time to buy a Columbia SC home officially plummeted to an all-time low in August, according to a new housing industry report.
Fannie Mae's August National Housing Survey results found this to be the second consecutive month it has fallen, dropping six percentage points since June to 64% and tying the all-time survey low.
Fannie Mae's recent numbers lend support to a forecast that 2015 won't be all that hot either, as more and more potential Columbia SC home buyers are losing interest in buying in the current economic conditions.
The current attitudes about the home buying environment reflects a shift away from record home buying affordability without enough consumer personal financial sentiment to compensate for it.
Not All Bad News for Columbia SC Home Buyers
The Fannie Mae survey found some sectors of the mortgage production universe are seeing significant growth. And Americans' attitude toward the future of the Columbia SC housing market is getting more positive, suggesting that housing activity could resume its modest recovery in 2015 after some pullback in 2014.
While prospective Columbia SC home buyers certainly wouldn't mind if home prices came back down, it could be rough for the Columbia SC economic recovery. Because homes have regained so much of their lost value, many Columbia SC home buyers once again have positive equity in their homes. And if prices were to decline, many homeowners could once again find themselves underwater, which would be a very bad thing.
The share of people who said they would buy if they were going to move fell to 64%, while the share of people who would rent increased to 32% — the narrowest gap in more than a year.
We'll continue to keep a sharp eye on trends that may affect Columbia SC home buyers, and report any and all trends in future updates here on our website. In the meantime, find more current real estate news articles under our Columbia SC Real Estate News section under Columbia SC Real Estate Categories to your right.
The Columbia SC housing report for June from Case-Shiller and FHFA are out and show that both existing home sales and new home sales were down, even though prices were up. Inventory is also on the rise and that should continue to dampen price pressures for people looking to buy a home.
Rick Sharga, EVP at Auction.com talks about the latest housing numbers and what it means going forward…
Find more articles about buying Columbia SC housing under the Columbia SC Real Estate Categories to your right.
Columbia SC housing has been showing signs of slowing down, and new problems facing homeowners looking to relocate, upsize or downsize, may be the reason why.
The problem is that by doing so, many homeowners would be surrendering a dynamite mortgage interest rate, which means even if the home they want to buy is about the same price or just a little more, they could end up paying much more per month.
Rates Inching Up for Columbia SC Housing
Interest rates for those looking at Columbia SC housing have been ticking up slowly since the middle of 2013 with a few stops and declines, but overall rates are higher and slowly rising.
The average rate on a 30-year mortgage fell below 4% toward the end of 2011 and reached a historic low of 3.3% in November 2012.
Rates on a 30-year fixed did not rise above 4% until June 2013, and in the interim homeowners and buyers went on a purchase and refi spree. Today, almost one in three active residential mortgages has a rate below 4%.
With this serving as a disincentive for otherwise qualified, motivated borrowers, it contributes to the spiral or rising affordability gaps (and hence, sluggish sales) since it has a negative impact on the available Columbia SC housing inventory.
Coupled with the decline in new construction and the shrinking pool of distressed properties, it’s a recipe for a really tight market, inventory-wise.
Home sales nationwide picked up momentum entering the summer months, and the latest numbers show that home prices are rising at a faster pace than at the start of 2014.
Constructed to gauge the price movement among normal home sales by excluding distressed properties, the index rose 1% from April to May. On a year-over-year basis, the rate of home-price appreciation across the nation slowed by 1% to 2% when compared to the first quarter.
This combination of rising prices and shrinking inventory is one of the reasons the Columbia SC housing recovery may be coming to a halt.
For more on Columbia SC housing trends and news, visit our Columbia SC Real Estate section of articles under our Columbia SC Real Estate Categories to the right.
The question most people want to know is how long will it take for Columbia SC home values to be back to where they were before the bottom dropped out? The housing recovery began approximately 3 years ago, but many markets have still to regain values lost during the recession.
Presently, Columbia SC home values are around 11.3% below their peak values seen in 2007. Columbia SC home values are expected to increase by a further 4.2% through to the second quarter of next year. These figures are from the Zillow Home Value Forecast, and it’s expected it will take 2.7 years for Columbia SC home values to reach their pre-recession levels, assuming that prices continue to appreciate at the levels predicted.
This would mean Columbia SC home values wouldn’t return to their previous peak values until the first quarter of 2017, nearly a decade since the housing recession first began, and it’s thought full recovery in the real estate market could take even longer. This is because the rate of home value appreciation is expected slowdown in the next few months and years.
While the news on Columbia SC home values don’t appear to be all that great for sellers, the lower Columbia SC home values are making it somewhat easier for buyers to find bargains, and home affordability should remain good over the next couple of years.
Columbia SC Home Values Increasing, But Inventory Shortages Still Exist
While the number of Columbia SC homes for sale is showing signs of inching up, inventories still remain constrained. Could “pocket listings” — for-sale properties that aren’t marketed widely or posted on the MLS — be the real culprit?
The sentiment in the marketplace is that we still have a shortage of inventory, and some believe it is due to the prevalence of pocket listings. Instead of marketing these for-sale properties on the MLS, brokers circulate the listings among their own buyer clients or within their own brokerage. No data exists on the number of pocket listings, but real estate professionals have been reporting a rise in this practice in recent months.
When there is limited inventory, agents convince sellers, because there is so much demand for housing, that maybe as many eyeballs don’t need to see their home as in a traditional market. We believe this practice hurts the market, and actually slows down the return to normal Columbia SC home values.
When it comes to Columbia SC homebuyers, it seems more and more people want open and more accessible homes, with outdoor living space, according to a recent housing trend report.
The American Institute of Architects recently released a quarterly survey on home-design trends that gathered input from architecture principals, partners and firm leaders from more than 500 AIA member–owned residential architecture firms.
According to the AIA's first-quarter 2014 report, some architects are designing slightly larger homes with more open spaces. About 15 percent of residential architects reported increases in home sizes, according to the report.
And 20 percent of architects reported home sizes were decreasing, down from 34 percent in the same period a year earlier.
More Columbia SC Homebuyers Want Combined Space
Some builders are creating homes for Columbia SC homebuyers with a more efficient use of space. Architects also are adding more features that make Columbia SC homes appear larger. According to the survey, more homes are being designed with higher ceilings and two-story entryways. An increase in open-layout concepts for homes was also reported, according to the survey.
More Columbia SC homebuyers are asking for new homes with kitchens and living rooms combined in one large room.
Residential architects also reported a significant increase in home layouts that implement improved accessibility. In-home accessibility, which includes wider hallways and fewer steps, was reported by almost two-thirds of the survey respondents. More than half, 55 percent, have reported that accessibility into and out of the home with on-grade entrances and ramps are becoming more popular features for Columbia SC homebuyers building new homes.
There is one other space that an increasing number of homes are adding, but it's not indoors. No matter the climate, people want a living space outdoors. This could be a patio, a deck that is connected to multiple living areas, or an outdoor fireplace or kitchen. Nearly 70 percent of residential architects report outdoor living to be increasing in popularity, according to the survey.
Many new Columbia SC homebuyers are looking to make green enhancements to their property. These include landscaping that requires little water and rainwater retention and reuse features for newer homes.
The desire to have green, energy-efficient products has moved inside, too. Consumers are very interested in investing in appliances and heating and cooling systems that are energy-efficient, and "they want the green (features) to impact the cost of operating the house." For more Columbia SC homebuyers tips, check out our Columbia SC Homebuyers Tips section of articles.