The Columbia SC housing recovery seems to be seeing a bottom finally getting closer, but getting there remains dicey. Home sales are steady, more sellers are lowering their prices and the inventory of homes for sale is dropping.
Unfortunately, the inventory doesn’t include the so-called “shadow inventory” of both distressed properties and those still held by owners who are underwater, owing more than their home is worth, and at risk for default.
Columbia SC Housing Sales Up
No doubt, sales of existing homes are up, according to the National Association of Realtors’ (NAR) latest Trend Report.
Another thing affecting the Columbia SC housing recovery is inventory. Inventories are expected to increase in the coming months as lenders process and list the huge backlog of distressed properties freed by the recent multi-state attorneys general agreement.
The shadow foreclosure inventory is considerably higher than the total inventory on the market today. Unless properly managed, the disposition of such properties could easily undermine the progress that has been made to date, this also according to NAR.
Radar Logic agrees. “The Columbia SC housing price and sales trends observed in 2011 are consistent with sellers dropping their prices to meet bids from bargain-hunting buyers,” and that’s eating away at inventories, Radar reports.
Would-be Columbia SC home buyers are still experiencing difficulty accessing mortgage financing. While rates remain near record lows, lenders remain risk averse and underwriting standards remain extremely strict.
What is your opinion about the Columbia SC housing recovery? Is a bottom near? Or do we still have a ways to go?
The Columbia SC housing market continues to show positive signs of improvement, along with other markets throughout the U.S. This, as reported by National Association of Home Builder’s chief economist, David Crowe, in the NAHB March Market Index report…
Columbia SC Housing Market According to NAR
According to the National Association of Realtors (NAR), nationwide, not just in the Columbia SC housing market, pending home sales fell slightly in February, but still remained well above levels set in the first half of 2011.
The NAR report indicates the spring home-buying season looks bright because of an elevated level of contract offers so far this year. The NAR Pending Home Sales index is a forward-looking indicator of housing activity based on contract signings, and is not just indicative of the Columbia SC housing market, but all markets across the country.
The index hit a level of 96.5 in February, down 0.5% from a score of 97 in January. Still, it remains 9.2% above the February 2011 index score of 88.4.
Have specific questions or comments about the Columbia SC housing market? We’d love to hear from you.