Columbia SC Housing Sees Strong Recovery Starting

A strong recovery appears to be starting for Columbia SC housing, according to a report released recently by Goldman Sachs Group.

Their report notes that Columbia SC housing has a “long list of positives,” including rising prices, job growth, supportive government policies and a decline in the so-called shadow inventory of homes.

Sachs reported, “The super cyclical housing market has turned and a strong recovery in new-home sales is ahead.” One Sachs analyst wrote, “Over the last year a number of risks to the housing market have abated, giving us confidence that rising home prices will drive a 3-7 year up-cycle in the U.S. market.”

The report went on to note, “the U.S. economy has created enough jobs since the end of the recession in 2009 to fuel new-home sales at an annual rate of 550,000 to 600,000. New houses sold at a pace of 369,000 in May, the highest rate since 2010, according to a Commerce Department report.

Government policies have improved in the past year by addressing supply instead of demand. Recent programs include the bulk sale of foreclosed single-family homes to investors who are converting them to rentals, and the expanded Home Affordable Refinance Program (HARP), which allows refinancing of properties worth less than their mortgages.

The Goldman Sachs report estimated new-home sales would reach 700,000 nationwide in 2014.

As for Columbia SC housing, we believe we have already seen the bottom, and the market is definitely showing signs of recovery.