After a rough past 5 to 7 years, Columbia SC home prices are slowly returning to normal, and Case-Shiller predicts home prices will continue to average 3.3% increases annually over the next 5 years.
The Columbia SC housing market was the closest thing to being called “normal” in 2012 that we’d seen since 1977. For the past 14 or 15 years, Columbia SC home prices and sales have either been boosted by a bubble mentality, or by crash psychology. From 1998 until the peak of the housing bubble in 2006, Columbia SC home prices grew by more than 5% a year. But once the bubble burst, prices plunged, falling over 30% through the middle of last year.
It wasn’t until late 2011 that markets started to stabilize. Between September 2011 and September 2012, average U.S. home prices rose 3.6%. By then, 62% of the 384 metro areas Case-Shiller tracks reported rising home prices, up from just 12.5% of all markets during the same period a year earlier.
By the end of 2013, some analysts predict Columbia SC home prices will be heading even higher. Of course, we all know that real estate is local, and depending on where in the Columbia SC area you are, foreclosures still working their way through the system may keep prices softer in your neighborhood than in others.
Other than the remaining foreclosure inventory still being dealt with, there are many positive trends in today’s market. Columbia SC home prices are extremely affordable and mortgage rates are still near historic lows.
Overall, Case-Shiller expects stronger demand for housing going forward, and the sector should once again have positive impact on the overall economy.
We’ll continue to closely monitor the Columbia SC home prices and sales and let you know where things are going. Our advice would be, “if you’re waiting for a bottom, you appear to have waited too long… as Columbia SC home prices definitely appear to be heading in a northerly direction now. Give us a call, or fill out our contact form if you’d like for us to contact you about any particular home you see listed in our MLS.
We encourage you to look around at the homes for sale on our site here, and let us know if there is anything we can assist you with. Columbia SC home prices won’t be getting any lower than they are now, so if you’re ready to get into your own home, or move up to a larger home, we’re here to help.
Is Columbia SC housing turning a corner on the road to recovery? Home buyers, as well as those thinking of selling their home, are still wondering if Columbia SC housing really is recovering, or whether the market is just seeing a temporary bump that could still fall back in the short term.
CNBC recently interviewed Tanya Marchiol, CEO of Team Investments, and Ken Rosen, chairman of the Fisher Center of Real Estate and UC Berkeley, and here is what they had to say about the current housing market…
For more on the Columbia SC housing market, read our latest Columbia SC Real Estate News under the Columbia SC Real Estate Categories to your right.
We’d love to know how you feel about the Columbia SC housing market if you’re thinking of buying or selling a home now. Use our comment link to sound off. As always, your email address will never be shared or displayed when you post. Also, for you spammers, links to website URL’s will also be removed before your comments are displayed, if they are approved.
Here’s a breakdown of why Columbia SC housing and housing nationwide has continued to decline this year:
Many homeowners are underwater: More than 10 million homeowners, including many who own Columbia SC housing, owe more on their mortgage than their homes are worth. Underwater owners aren’t likely to sell unless they need to move due to changing life (marriage, divorce) or financial circumstances, and they’ll take a hit on their credit for pursuing a short sale, where the bank allows the home to sell for less than the amount owed.
Everyone wants to buy at the bottom, but few want to sell: Even those people who do have plenty of home equity are likely reluctant to sell if they think prices will be higher next month. Would you sell your largest asset today if you thought it might be worth 5% more next year? This helps explain why markets such as Columbia SC, which has smaller shares of underwater borrowers, have also seen double-digit inventory declines.
Banks have been slower at foreclosing: Banks and other companies that process delinquent mortgages have had trouble proving that they’ve followed state law in taking title to homes ever since the “robo-signing” scandal surfaced in late 2010, and they’ve also had to meet a host of new state and federal rules governing loan modifications and foreclosures from settlements spawned by the robo-scandal. Banks have also become better about approving short sales and loan modifications, which has curbed the flow of foreclosed properties onto the market.
Builders have been building fewer homes: Columbia SC housing starts were severely depressed from 2009 through 2011 and have only recently rebounded off of those low levels. Consequently, there’s been much less new home inventory being added to the market at a time when demand (boosted by increases in household formation) is picking up. If more homes are held off the market — for any of the reasons stated here — you can bet that builders will move in to fill the void.
For 2012 as a whole, sales were up 9% to 4.65 million units, the highest annual total since 2007.
Prices, meanwhile, are picking up because the number of homes for sale continues to drop despite the sales volume gains. The number of homes for sale nationwide fell to 1.82 million at the end of 2012, an 8.5% drop from November and a 21.6% decline from one year earlier.
There are three reasons for optimism when it comes to Columbia SC housing. Liz Ann Sonders with Charles Schwab explains…
Bookmark this website to stay abreast of all the latest news as it pertains to Columbia SC housing in 2013.
As we start a new year, national and regional trends for housing are very positive. Columbia SC housing, as well as housing throughout the entire 48 contiguous states were up in December.
Stick with us throughout 2013 for all the latest Columbia SC housing news. If you have a comment or question about any of our articles, we welcome you to leave your comments here.