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Columbia SC Housing Market Happy to See Spring Arrive
The term "Spring Thaw" means different things to different people, depending on where in the world they may live. But a thaw in the Columbia SC housing market is the same no matter where you may live.
After a weather-weakened winter for Columbia SC housing sales, as well as most everywhere else in the country, more potential buyers signed contracts to buy a Columbia SC home in March.
The National Association of Realtors says pending sales of existing homes rose 3.4 percent from the previous month, the first monthly increase in nine months.
Lawrence Yun, chief economist for the National Association, said, “After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers.”
Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy. The increase in contracts for Columbia SC homes was welcome news because actual sales of existing homes were flat in March. Contract signings in March were still 7.9 percent below March 2013.
A slow start to the year will likely mean fewer overall sales throughout this year compared with 2013. The NAR forecasts total existing home sales of 4.9 million this year, compared with 5.1 million last year. The association forecasts housing prices will rise another 6 percent to 7 percent this year.
Case-Shiller Thoughts on Home Pricing
The latest Case-Shiller Home Price Indices report, "Going forward, if home prices continue to rise, there are a limited number of options to offset the rising cost of purchasing a home: 1) an equally sizable increase in wages or 2) a marked reduction in credit restrictions. Given the significant slack in the labor market, the latter option of easing lending standards appears to be the most probable and fast-acting solution."
Despite continued price gains, most other housing statistics are weak.
Sales of both new and existing homes are flat to down. The recovery in housing starts, now less than one million units at annual rates, is faltering. Moreover, home prices nationally have not made it back to 2005. Mortgage interest rates, which jumped in May last year and are steady since then, are blamed by some analysts for the weakness. Others cite difficulties in qualifying for loans and concerns about consumer confidence. The result is less demand and fewer homes being built.
Columbia SC Homeownership at Lowest Level Since 1995
The Columbia SC homeownership rate in the first quarter of 2014 stands at the lowest since June 1995.
The rate of homeownership at the end of the first quarter of 2014 was 64.8%, which is 0.2 percentage points lower than the first quarter 2013 rate of 65%, according to the U.S. Census Bureau.
Mortgage Applications Dive
Applications for Columbia SC home mortgages fell last week to their lowest level since December 2000 as both refinancing and purchase applications declined.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 5.9 percent to 333.2 in the week ended April 25. That was the lowest level since December 2000.
The combination of higher rates, new regulation and tight inventory in the Columbia SC housing market are all leading to a weaker spring market than we have seen in years.
The MBA's seasonally adjusted index of refinancing applications declined 6.9 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell 4.4 percent.
Fixed 30-year mortgage rates averaged 4.49 percent this past week, unchanged from the week before.
Call us today or use the contact link at our website to take advantage of the spring thaw in Columbia SC housing, and let us know how we can help you find the perfect Columbia SC home for your needs and your budget.
There have been all kinds of bad Columbia SC housing news reports in recent weeks, from slower home price increases, to rising mortgage rates and harder rules to qualify for a loan.
On top of that, national new reports on real estate have been chilly, mainly due to a cold winter and low consumer confidence. But there are a few things to be optimistic about when it comes to Columbia SC housing this year…CNN's Christine Romans reports…
Check out our other articles and tips pertaining to Columbia SC housing news by clicking on the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.
The Columbia SC housing recovery appears to be on track, according to newly-released data, although not at the pace it once was. Home prices rose slightly more than expected in December, according to the S&P/Case-Shiller index.
David Blitzer, chairman of the S&P Dow Jones Indices Index Committee, called 2013 the best year for the index since 2005, but noted that gains are slowing from month-to-month. That's in line with the latest results from luxury homebuilder Toll Brothers, which reported a 52% jump in quarterly revenue but said demand has leveled recently.
Check out our other articles and tips pertaining to Columbia SC housing by clicking on the Columbia SC Real Estate link to your right under Columbia SC Real Estate Categories.
Columbia SC housing is expected to see slower rates of growth this year compared to 2013. The double-digit gains in home prices we saw in 2013 are expected to slow to a more realistic 2-4 percent. We also expect to see more inventory of homes coming on the market in 2014. Many sellers who were stuck in their homes when they owed more than the home was worth, will now be looking to sell and move to a different home.
Real estate expert Brendon DeSimone discussed the overall housing market recently on Bloomberg Surveillance, and here's what he had to say…
The spring Columbia SC housing market is just around the corner. And if the latest price and sales numbers are any indicator, this spring is likely to see another big jump in prices, driven in large part by the long-standing shortage of listings.
Take a look at what happened in December, usually the dead zone of the annual Columbia SC housing cycle. Instead, Columbia SC housing was up in December from November, and although experts like DeSimone think things will slow down this year, so far, it's not really happening quite like he's seeing in our market.
We'll keep you informed on Columbia SC housing and how the economy is affecting our market right here at our website. Stay tuned!
Key indicators show Columbia SC housing moving in a positive direction, paving the way for an ongoing recovery, the latest Freddie Mac Economic and Housing Market Outlook shows.
"As we start 2014, the housing recovery continues its steady pace. House-price gains will likely moderate from last year's pace but rise about 5 percent in national indexes," said Frank Nothaft, Freddie Mac's vice president and chief economist.
"Home sales, as well as other key indicators, continue to trend in the right direction, although in some markets we are seeing the sales recovery strengthen while many others remain weak," Nothaft added.
Pivotal Columbia SC Housing Indicators
Pivotal Columbia SC housing indicators include December's unemployment rate of 6.7%, which remains stubbornly high.
The report indicated that it may take another two years until the labor market gets back to full employment.
Additionally, the report said that mortgage delinquency rates at 5.88% have been nearly cut in half from their peak, but they are still very high from their long term normal average of approximately 2%.
There is still room for improvement in payment-to-income ratios, which are only at 60% of the level seen in 1999 suggesting room for continued home price growth.
From 1999-2006, mortgage payments on a hypothetical 30-year, fixed-rate mortgage would have increased by 50% more than income growth.
And when measured against the single-family housing stock, home sales have historically averaged about 6% of the stock at an annual rate. With home sales at a 5.8 million pace nationwide in 2014, this rate should rise up to 5.7% for 2014.
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