A Columbia SC housing rebound appears to be fully underway. There was a significant increase in both housing starts and building permits locally last month, as well as nationwide.
On a national level, housing starts rose 6.9% in June to a 760,000 annual rate, the highest level in four years. That’s up an impressive 23.6% compared with a year earlier. Permits to build new homes fell slightly from revised May numbers to 755,000, but were up 19.3% compared with June 2011.
Columbia SC Housing – The Stark Reality
Columbia SC housing has seen many house hunters start out looking for existing homes in picture-perfect, move-in condition, only to be disappointed in what they found. Few of those homes are available because the owners are sitting on them. Many owners are just not selling now, forcing many would-be buyers to look to new construction to get what they want.
A separate release from the National Association of Home Builders (NAHB) reported that builder confidence is at its highest level in five years.
Builder confidence increased by solid margins in every region of the country in July. “Views of current sales conditions, prospects for future sales and traffic of prospective buyers all improved,” said Barry Rutenberg, NAHB’s chairman.
With home building numbers on the rise and prices solidifying, the Columbia SC housing market should start contributing to national economic growth for the first time since 2007. The contribution will be even larger next year as home building continues to increase, foreclosures work their way off the market, and prices see more consistent gains.
If you’re ready to dive into the Columbia SC housing market, make sure you don’t do it without the expertise of your own agent. Contact us for more information about Columbia SC housing and some of the pros and cons of buying now.
Columbia SC housing, although improving, will certainly see more clarity as we move through the summer and fall buying seasons and into 2013.
If you’re even remotely considering buying a Columbia SC home, or a home in any of the many areas we serve, contact us right away before home prices increase even more, and available inventory is further reduced. These trending home indicators will only make buying Columbia SC housing even more expensive, the longer you wait.
Columbia SC apartment rent prices became even more expensive during the second quarter. Vacancies set a new 10-year low and rents rose faster than since before the financial crisis began.
Demand from tenants sitting out the home-buying market pushed vacancy rates to their lowest point in more than a decade. Despite the sluggish economy, average rents increased in all 82 markets tracked by Reis Inc., a real estate data firm. Average rents are now at record levels in 74 of those markets.
Tight Lending Standards Drive Columbia SC Apartment Rent Higher
With the economy slowly recovering, more people are looking for their own places. But many are opting to rent rather than buy due to tighter lending standards—including higher down payments—and because of concerns about job security.
Reis said that this is only the third quarter in over three decades that the vacancy rate has been below 5%. When vacancies fall to this level, landlords typically accelerate rent increases “and that is exactly what is transpiring,” according to the Reis report.
Generation Y has also been a driving force for higher rental prices in urban areas where job markets are relatively strong. Even though Columbia SC home ownership costs less than renting, young professionals prefer to rent apartments in the tightly packed city than move out to the spacious suburbs.
Analysts point out that the apartment sector may lose steam if the economy weakens further and tenants begin doubling up again or put up more resistance to Columbia SC apartment rent hikes. An increase in new construction has led more and more people to squeeze into tight urban areas at higher prices.
If you’re trying to decide whether the increased rates being charged for Columbia SC apartment rent is cheaper or more expensive than owning your own home, contact us today. We can help you crunch the numbers to see which scenario fits your financial situation the best.
A Columbia SC housing shortage, as well as a nationwide housing shortage, is a real threat. The housing market has gone through a series of events that include foreclosures, bad equity, bad loans and many more. One topic the real estate market is ignoring is home shortages.
Columbia SC Housing Shortage And Why It Is Coming
Alex Charfen discusses with Steve Harney about the growth in housing shortages and the drastic drop of houses being built over the past five years. Before 2008, 1 million homes were being built on average, but by 2009 the number of homes built have dropped consistently about 10-20% per year.
A Columbia SC housing shortage will only get worse before it gets better, which makes now the best time to be looking for a home. Wait until the shortage really kicks in, and not only will prices have jumped, but the available inventory of homes to choose from will have diminished greatly.
Contact us today for a free, no-obligation consultation on the Columbia SC housing shortage, and how it could affect home prices and inventory if you decide to wait a year or two to buy a home.