The Columbia SC real estate market, like most housing markets throughout the U.S., presents a challenge for that segment of the population commonly referred to as “Millennials.” Millennials are generally identified as men and women between the ages of 25-34. Let’s look at the ongoing dilemma many Millennials face in today’s complex real estate environment.
Columbia SC Real Estate: Where Do Millennials Fit?
It wasn’t long ago that home ownership was a goal every red-blooded, hard-working American citizen aspired to achieve. Parents scrimped and saved to provide their children with at least a portion of the down payment needed to buy their first home. Home ownership was viewed as an expectation by some, and a mark of success by others. Being able – or willing – to buy a home was somewhat of a rite of passage, after all, who wants to “throw money away” on rent each month?
Today, more than a few things have changed – no doubt as a result of what a large segment of Millennials have personally experienced – shaping their thoughts, opinions and goals. During the housing crisis of less than a decade ago, millions of Millennials witnessed firsthand the effects foreclosure can have on a family. Even if they weren’t directly affected by rampant foreclosures, they surely know friends or relatives who were. It’s perfectly understandable that for many, the scars associated with the financial battles they and their families faced were both real and memorable.
Couple the housing crash with a recessionary economy and a job market that consistently failed to meet their growing expectations and it’s no wonder many Millennials who probably could be buying homes have opted not to for now.
Columbia SC Real Estate: Statistics
Generation Progress, a national progressive advocacy and action network for young people, recently cited data from the Bureau of Labor Statistics. They expressed an optimistic outlook of the current Millennial labor participation market. Generation Progress said for older Millennials – between the ages of 25-34 – the participation in the U.S. labor force is much higher than the national average. While many Millennials are working again and presumably earning more, the possibility of buying a home is a reality within reach. The question that remains, however, is will they buy?
For many of these potential first-time purchasers, the home buying process is rather daunting. They are finding that a home they can afford now may not fill the bill for their “forever home.” Even though the cozy little two-bedroom starter home is affordable and larger than their one-bedroom apartment, Millennials are pausing to ask themselves, “What happens when we want more room, start a family, or want to move to a nicer neighborhood?” When you’re young, the chances of outgrowing your first home are pretty good. Thus, the Millennial dilemma continues. Should they buy a home they can afford now knowing they will want to move sooner than later, or keep saving for a down payment on a larger home?
Consider this statistic, courtesy of the National Association of Realtors: “… for the last three years, Generation Y/Millennials (buyers 18 to 35) is the largest share of home buyers at 35%.” So, the good news is a number of Millennials have entered the Columbia SC real estate market and have purchased homes. Let’s take a quick look at the positives and negatives that Millennials still wrestle with.
Columbia SC Real Estate: Positives
Nationwide, home prices are expected to continue to rise through the rest of the year. In addition, mortgage interest rates are still very low – despite rumblings from the Federal Reserve that they won’t stay low. Simply put, it’s a good time to buy a home. The most important thing to consider is compared to next year, today’s Columbia SC real estate market may look like a bargain.
Columbia SC Real Estate: Negatives
While many Millennials may have saved enough money for a sufficient down payment, some may not realize that’s only the beginning of their cash needs. In order to close a home sale they’ll need closing costs, property taxes, homeowners insurance, maintenance, utilities and more. In addition, if they plan to do any remodeling, even painting or re-carpeting, they’ll need additional money.
Experts say maintenance and repairs usually run home owners 1% – 2% of their mortgage costs annually. So, conservatively, if your mortgage is $150,000 that 1% would cost you roughly $1,500 per year, or $125 per month. Another point to consider: If you move to the suburbs and have formerly been a one-car family, you may now need two cars. Statistics show most Americans spend nearly half of their household income on housing and transportation.
Millennials, like most first-time home buyers will eventually learn their best option may be to buy something now they can get into relatively inexpensively while interest rates are low and prices haven't gone any higher. Then, as the newly-acquired property appreciates they can sell and move up to a larger home – hopefully enjoying the profits of their investment. With soaring rents nationwide, that may be more appealing than continuing to pay rent.
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Columbia SC home improvements can cost tens of thousands of dollars – but they don't have to. Landscaping upgrades are among the most popular improvement projects because of their relatively inexpensive price tag. In addition, a landscaping facelift can dramatically transform the way a home appears, often adding value by recouping the investment made. Whether your goal is to improve your home’s curb appeal, grow a colorful flower garden or create a relaxing backyard wonderland, by following these simple tips you can save money with Columbia SC home improvements to your home’s surroundings.
Columbia SC Home Improvements: Decks
If you have a wooden deck that needs to be brought back to life, it doesn’t have to cost a fortune. Take time to carefully inspect the structure and foundation of the deck. Pay close attention to the load-bearing posts, the stair stringers and ground-level support joists. Check to make sure bolts and screws are tight and secure. If you see any boards that are showing signs of deterioration, replace them now – they will only get worse. Also, be sure to tap down any nail heads that have popped up on the good boards.
The next step is to swab the deck, matey! You’ll be surprised at what a thorough cleaning can do for the appearance of a tired or worn-looking deck. So, after you’ve made any repairs, scrub down the deck with the following mixture: Mix a quart of regular household bleach and 1/3 cup of your favorite powdered laundry detergent into three quarts of warm water. Use whatever scrubbing method or material is best for you, but experts recommend a stiff-bristled, long handled brush – or an old broom you’re planning to throw away. Once you’ve given it a good scrubbing, hose down your deck and take a look at your revived surface. If you choose to finish the deck, a semitransparent stain is a popular choice for the protection and enhancement of old wooden decks.
Columbia SC Home Improvements: Fences
Fencing is a favorite item on homeowners’ lists of Columbia SC home improvements. A good, sturdy fence is important for giving you privacy and for keeping children and pets safe and secure. The downside of good fencing? It can be expensive. Fencing materials alone can cost upwards of $14 per linear foot for select grade picket fence board. In addition, because properly installing a fence requires the right tools and some expertise, it’s usually not a recommended do-it-yourself project for the average homeowner. However, if you’re considering replacing an old fence with something newer, homeowners can save a good deal of money in doing the tear-down and removal themselves. All that’s usually required for that stage of the Columbia SC home improvements project is a sledgehammer, a crowbar, a hammer or two and a truck to haul off the old fence – plus a generous helping of “elbow grease!”
The pricing of new fencing is usually based on the materials you select. Decide what best suits your needs and meets your budget. Homeowners often find a less expensive fence provides the same results as a top-of-the-line model that can throw your budget for a loop. Lastly, before you start swinging that sledgehammer, take another look at your fence. If it’s still sturdy and solid, but just needs a new look, try a fresh coat of paint. You may be surprised at the results, and you’ll save money, too.
Columbia SC Home Improvements: Landscaping
Let’s be honest. You can spend a small fortune on sod, plants and flowers – but you don’t necessarily need to. While greenery and flowers are important parts of your Columbia SC home improvements landscaping makeover, you can save money and still get what you want. The best time to buy trees, shrubbery and plants – including mulch and garden accessories – is late in the growing season. Visit the big-box stores where the prices are lower because they buy in bulk. Be careful, however, to inspect their plants and flowers carefully. They likely don’t receive the care and treatment they would at a professional nursery and garden center.
Experts suggest you buy perennials, since as the name implies, they reappear every year. You can also get some plants for free, by organizing a neighborhood garden swap or by sharing cuttings from neighbors’ yards. All you have to do is snip from the areas of new growth, pot the cuttings and water them sufficiently.
Columbia SC Home Improvements: Patios
Patios are popular, and keeping them updated shouldn't cost a great deal. If it’s time for a patio makeover, follow these tips from the experts. Inspect the concrete floor. As long as the structure and foundation is sturdy and sound, a worn appearance can usually be spruced up with concrete paint. Specially made paint for concrete floors comes in a variety of colors and, with a little creativity and ingenuity, you can make your patio as unique as you want.
If you’re considering starting a patio from scratch, consider this: Devote a portion of your yard to pavers. They’re easy to work with, easy to take care of and fairly inexpensive. Professional installation of pavers can cost as little as $5 per square foot in some areas of the country.
The final step is to update the furnishings on your existing or new patio. You can save money by looking for deals on various websites like DealCatcher, or by going to eBay or Craigslist. Garage and yard sales may also offer great bargains on gently used, pre-owned furniture that’s perfect for your patio. If you currently have patio furniture, but need to give it a little TLC, you can sand the metal frames and give it them fresh coat of spray paint. Adding new weather-resistant seat cushions and a medium-to-high-quality patio umbrella is also a nice touch.
Columbia SC Home Improvements: Gardens
Creativity is your friend when it comes to creating and cultivating a garden gallery as one of your Columbia SC home improvements. Dishes from a dollar store or containers and canisters from a flea market or yard sale can be used as unique flowerpots. Plus, before you go out and buy something new, take stock in what you have that can be reused or recycled for a different purpose. An old chest of drawers or dresser can be used as a potting station for all your garden implements and tools. In addition, an unused dining cart can be transformed into a mobile grill accessory. Be careful, however, not to overdo it. The last thing you want is for your facelift to look junky. That will defeat the whole purpose of your improvement project.
By using your mind’s eye to envision the transformation of the outside of your home, you can find interesting and useful ways to use your imagination without spending a lot of money to make these and other Columbia SC home improvements.
You can find more articles pertaining to home improvements in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right. We also post tips daily on Twitter and Facebook and would love for you to follow us there as well.
The Columbia SC economy grew only slightly less than expected during the first quarter of 2016. This was due, in part, to a surge in home-building and a slow but steady increase in inventory investment by businesses. The U.S. Commerce Department had projected the gross domestic product (GDP) to grow at a rate of .9%. In actuality, the GDP grew slightly less than that, at .8%.
Columbia SC Economy: What to Expect
The rise in GDP of .8% was higher than the .5% pace reported last month, the Commerce Department reported. It was at the weakest level since the first quarter of last year. The upward revision to the GDP growth estimates the result of improved trading than was previously anticipated. In addition, government reports included a slight rebound in post-tax corporate profits. Profits increased at a rate of .6% in the first quarter after suffering an 8.4% decline during the fourth quarter of 2015.
Looking at the income side of the equation, the U.S. economy grew at a 2.2% pace following an increase of 1.9% during the fourth quarter of 2015.
The Columbia SC economy – as is the case throughout the U.S. – has been damaged by a relatively strong dollar and stagnant-to-sluggish demand in global markets. That slowed demand has resulted in eroding growth in exports. The economy has also been hurt by lower oil prices, undercutting profits for major oil companies and causing them to curtail or suspend equipment spending.
Economists argue the government’s model to selectively dissect seasonal patterns from reporting data isn’t working. Government agencies including the Commerce Department spent considerable time in the past year trying to address the reporting problems.
First-quarter GDP data has suffered due to the residual seasonality inherent in the reports, with growth underperforming in five of the last six years. There are some signs that the economy gained traction in the second quarter in retail sales, industrial production, the export of goods, housing starts, and home sales increases in April.
While the Atlanta Federal Reserve is currently forecasting a second-quarter increase in the GDP of 2.9%, the continuing higher than expected inventory levels presents a risk to their estimate. In a recent poll of U.S. economists by Reuters, most had anticipated the first-quarter growth in GDP would be revised upward to .9%. The U.S. economy grew at a 1.4% rate during the fourth quarter of 2015.
Spending on residential construction in the Columbia SC economy increased 17.1% in the first quarter – representing the fastest growth rate in just over three years. The increase was previously reported to be 14.8%. Nationwide, businesses amassed over $69 billion worth of inventory, up from the $60.9 billion estimated a month ago. Inventory was reduced slightly by .2% from the first-quarter GDP growth projections of .33%.
Consumer spending levels, which account for over 66% of the activity in the U.S. economy, were not revised. Spending increased at a rate of nearly 2%, slightly lower than the fourth quarter’s 2.4% pace.
U. S. households were apparently more frugal in the first quarter. There was a noticeable cutback on the purchase of long-lasting manufactured goods like automobiles and home appliances. Disposable household income after taxes and inflation was revised upward to reflect a 4% growth rate during the first quarter compared to the previously reported 2.9%.
Savings in accounts were revised upward to nearly $783 billion from $712 billion. While exports were initially anticipated to be weak, first quarter results showed improvement, resulting in a smaller trade deficit.
Economists expect cheap gas and lower airfares will result in a spike in summer travel and an overall slight increase in the U.S. economy.
While building permits issued remain relatively high, the actual number of home starts concern some analysts insight of what has already been termed a "low inventory home market."
Furthermore, many U.S. economists are concerned that the Federal Reserve, in an effort to cling to the misguided belief that full employment causes inflation, will raise interest rates at their next meeting. Defining "full employment" as a maximum unemployment rate of 5-6%, the Fed is exhibiting signs leading to "stagflation" – the condition that largely plagued the U.S. economy during much of the 1970s and early 1980s. Stagflation was defined as rising inflation doubled with a high unemployment rate and low-to-negative economic growth.
Economists fear the Fed doesn't fully understand that full employment and stable prices can co-exist. They argue that having more workers producing goods and services will never, on its own, contribute dramatically to an economy of soaring prices. The recent pace of hiring was the lowest since the fourth quarter of 2015. In addition, job creation has churned to a sluggish average of 200,000 net new jobs created for the past three months. Most concerning is the fact that this slowdown comes on the heels of a five-year high of 282,000 jobs per month during the fourth quarter of 2015.
It remains to be seen what the Federal Reserve will or won't do and how their decision will affect the Columbia SC economy. In the meantime, there are bright spots that can hopefully be expanded. As is usually the case, an election year may have anticipated changes and consequences.
Read more articles pertaining to the Columbia SC economy in the section of articles on the Columbia SC Economy just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
Columbia SC insurance – like many other goods and services – depends on several factors and can vary from carrier to carrier, and house to house. Homeowners insurance experts say that insurance premiums and coverages can very from one house to the next, even if they’re on the same block in a subdivision. With the cost of living seemingly always on the rise, shouldn’t you be vigilant in making sure you’re not paying more than you should be for Columbia SC insurance premiums for your home? Let’s take a look at a few tips that may help you get the very best deal on your homeowners insurance.
Columbia SC Insurance: Ways to Save Money
Bundle, bundle and bundle some more. If there’s one word that’s more often suggested and sold to consumers today, it’s “bundle.” The concept has always been around. Early general stores offered their customers discounts if they bought feed, seeds and planting equipment together. The merchant was able to increase his total sale and, in exchange for the higher sale, he could offer a small savings to this customer. Insurance, like telephone, cable and Internet companies these days do the same thing. Many insurance providers will offer as much as a 15% discount or more on your homeowners insurance premium if you allow them to bundle it with your automobile or other insurance coverage. Usually, it’s a "win-win” for the consumer since he has all his insurance coverage in one convenient place and only has to deal with one company in the event of an accident or other loss.
Inquire about other available discounts. Insurance carriers sometimes advertise only some of their discounts, but fail to mention others. Often, just asking your agent about available discounts may lead to positive results and money-saving policy premiums on your Columbia SC insurance.
Prepare your home for disasters. While none of us wants to think about any kind of fire, peril or natural disaster, they do happen. If you live in an area of the country known for natural disasters such as hurricanes, tornadoes or wildfires, it’s best to be as prepared as possible. Some insurance companies can save you up to 30% or more on your homeowners insurance if you perform a few basic disaster preparedness steps. While most major insurance carriers cover homes meeting the Institute for Business and Home Safety (IBHS) requirements to get the highest discounts, ask your agent about what his company offers. You may be pleasantly surprised to learn that making a few minor improvements or performing a handful of preventative maintenance will pay off in the event of a natural disaster.
Install a burglar alarm system. Burglary or vandalism to your home is one of the leading reasons insurance claims are so high. Subsequently, your Columbia SC insurance premiums can be significantly decreased by installing a burglar alarm to reduce the risk of your home being burglarized. Homeowners who install quality alarm systems may be able to save as much as 20% in insurance premiums. Due to the proliferation and popularity of the accompanying technology, the cost of alarm systems has come down dramatically in recent years. The savings on your insurance premiums will likely enable you to recoup your investment in a short period of time.
Increase your deductible. By raising your deductible, that is, the amount you have to pay out of pocket before the insurance company will pay the remainder of your claim limits, you can save a substantial amount of money. Columbia SC insurance deductibles can range from $500 to $5,000 or more. Of course, a higher deductible means the insurance carrier is less likely to have to pay a claim – meaning they are willing to pass some of those savings on to you. A word of caution, however: Make sure you can afford to pay the deductible in the event of a loss. Having a too-high deductible that you can’t pay will only lead to additional problems when and if you have a fire, peril or other loss.
Don’t carry more insurance on your home than you need. In nearly every case, you should carry no more than full market coverage – and it’s usually worth having that amount of coverage. We recommend you have your home inspected by an independent contractor who can provide you a second opinion of its value. Beware of insurance agents that inflate your home’s value to get you to pay higher premiums. And, just as a reminder, the land on which your home is situated can’t burn down, so there’s no need to include its value in the overall replacement coverage of your home and any outbuildings, etc.
Maintain a good credit score. Believe it or not, your credit score can impact your Columbia SC home insurance premium costs. Insurance carriers – like a growing number of businesses – reward their customers for paying their bills on time. Conversely, if they deem you a credit risk or a slow-payer, the premiums may be higher than normal.
Review your policy and premium rates every year. Insurance rules and regulations change from time to time. In addition, the cost of replacement materials can fluctuate – up and down – according to supply, demand and new technologies. Make sure you’re up to date on all the component parts that comprise your homeowners insurance policy. Staying abreast of changes will not only keep you informed, but it could also save you money when the time comes to compare policies and coverages with other insurance carriers.
It’s your responsibility. No matter how good your relationship is with your current insurance carrier or agent, at the end of the day saving money on your home insurance is your responsibility, not theirs. So, be vigilant and keep your eyes open for areas in which you can save money. A little here and a little there can add up to be a lot of money over the life of your insurance coverage. And, of course, you’ll always want to have insurance as long as you have a home to insure.
Read more articles pertaining to insurance in the section of articles on Columbia SC Insurance just below Columbia SC Real Estate Categories in the column to your right. Remember, we also post tips daily on Facebook and Twitter. We hope you'll check us out there, too.
Buying Columbia SC real estate is an emotional process. Many buyers see a house they fall in love with and decide in their heart and mind that's the home they want to buy. If you find what appears to be the perfect home for you and your family, it’s a good idea to take a more detailed, in-depth look at the home’s exterior. The old adage, “Don’t judge a book by its cover” doesn’t apply in this case. For homes in the Columbia SC real estate market, it’s important to give the outside of the home a thorough inspection. By doing so, the “cover” may, indeed, give you a better idea of the entire “book.” Let’s take a look at some of the exterior considerations to keep in mind when looking for a home to buy.
Columbia SC Real Estate – Check the Outside
Trees and Foliage
Take a closer look at the trees surrounding or near the home. Pay particular attention to how close the trees are to the home’s foundation. As those trees continue to grow, the roots can expand and cause problems to the foundation. In addition, other areas like concrete or paved walkways and driveways can be affected. Furthermore, if an older tree is removed it could create a void when the roots decay, resulting in a drop in the foundation.
To ensure you can avoid potential problems it may be a good idea to seek the opinion of a foundation expert during the inspection process. Enlist the aid of an experienced tree expert of arborist to evaluate the health of trees that may affect your home.
In addition, those beautiful mature trees may have limbs that extend over the home’s roof. Have the home inspected for any signs of damage to the roof shingles or eaves. Squirrels, possums, and rodents often use tree branches to get into accessible areas of your home. When that happens, they can enter your attic through the smallest of openings in the fascia or soffit. If the home you’re looking to buy has foliage extending over its roof, consider asking the seller to prune the tree limbs. It’s also advisable to inspect the shrubbery that may be in direct contact with the house to make sure it doesn’t contain evidence of termites or carpenter ants that may have gained easy access. Naturally, to be completely sure, it’s always good to have a professional termite or wood-destroying insect inspection and treatment.
The Home’s Foundation
Check the foundation of the home for cracks. Some cracks are to be expected and most will be minor in nature. However, cracks allow moisture in the foundation and can cause deterioration – especially in climates subject to freezing temperatures in the winter.
Experts suggest that if you encounter foundation cracks you should have a contractor inspect them to determine the degree of severity. If you decide to move forward with the home purchase, the cost of the repairs – if necessary – could be a factor in the price negotiation.
Lastly, in areas prone to foundation problems, a potential purchaser should take note of the grade or slope of the soil around and against the house. The foundation should be exposed by a minimum of two inches and it should be sloped away from the house. This ensures that rainwater runs away from the foundation and doesn’t collect or pool against the home.
A Swimming Pool
If the home in the Columbia SC real estate market you’re interested in has a swimming pool, there are several questions you should ask:
How old is the pool lining?
Has the pool liner been resurfaced?
How old is the pool equipment?
For a more in-depth inspection, contact a professional pool company. While a swimming pool can seem like a wonderful amenity for a home, it can also become an expensive and problematic feature for prospective home owners.
What if You Find a Problem?
If you find an issue or two with the home’s exterior, it doesn’t necessarily mean you shouldn’t buy the house. Compile an analysis of the home’s plusses and minuses. Consider the problems objectively, taking into consideration the cost to remedy them. Then, armed with that information you can either request that the seller make the necessary repairs or use that in the negotiating process. In many cases, the seller may discount the sales price based on the estimated cost of substantiated repairs a buyer may have to make. In addition, some lenders may require certain repairs be made before they provide final approval of the financing.
What if Everything’s Good?
If everything regarding your exterior inspection checks out, you should still keep in mind the future maintenance of the home.
• Continue to keep foliage and tree branches pruned
• Determine what type of grass your yard has and care for it accordingly
• If you have a lawn sprinkler system, check it regularly
• Inspect you landscape lighting
Remember, Curb Appeal is More Than Just the Obvious
Curb appeal is important in evaluating Columbia SC real estate, but curb appeal is more than just an attractive mailbox or driveway. There are many other components that should be considered and inspected to make sure your prospective home is all you want it to be. Be cautious, inquisitive and have an expert inspect the home. A little knowledge beforehand can save a ton of frustration and expense after the fact.
You can find more articles pertaining to Columbia SC real estate in the real estate section of our site below Columbia SC Real Estate Categories in the column to your right.
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