Much of the real estate news over the past 12-18 months has centered around an improving U.S. housing market that’s finally on the way to recovering from the last recession. Sales prices and home values have grown steadily during that time, while home inventory levels have been near historic lows. New home construction, though brisk, has struggled to keep pace with growing demand. As we prepare for the end of another calendar year, many analysts are asking the question, “Is the Columbia SC real estate seller's market over?”
Let’s take a more in-depth look into answering that question.
The simple answer is “yes and no.” According to nationwide data, experts say the Columbia SC real estate seller's market news making headlines next year will be that the real estate market in 2017 will be very similar to what it was in 2016. Case in point: a nationally recognized real estate website took a survey of prospective homebuyers and reported that 52% are first-time buyers – an increase of 19% from the previous year. Real estate professionals say they, too, expect a larger number of first-time buyers entering the market next year, but express caution that with those new buyers comes challenges to both the real estate market and the buyers themselves.
What has caused the forecast for more first-time homebuyers to be looking into the 2017 market? Several factors: A seemingly stronger job market and continued lower interest rates seem to be the real motivators. Plus, rents have risen almost as steadily as home values, prompting a number of first-timers to consider buying as a more sensible financial decision than renting.
The influx of first-time buyers will bring challenges – some of them of very real concern. Low home inventory is expected to continue to plague the delicate balancing act of supply and demand. Some experts say to absorb the expected 19% increase in first-time buyers, the market needs a minimum of six months of supply. However, the market has had 49 consecutive months of less than six months home supply. So, experts say, the Columbia SC real estate seller’s market will probably continue, as well as throughout the nation as a whole – with some areas or regions seeing slight shifting to the contrary.
So, where will seller’s markets continue?
Cities throughout America where the population continues to increase at a steady pace are the likely candidates for seller’s markets to continue. In these metropolitan areas, housing simply won’t be able to keep up with demand. When that happens, the fewer available homes on the market become more valuable and the seller’s benefit.
In some markets, real estate professionals report a slight increase in housing inventory which has caused asking prices to be more reasonable. In addition, some sellers are offering more concessions in negotiations such as paying partial closing costs or repair allowances. However, some of the increased inventory is artificial, in a sense, because those sellers aren’t committed to selling – they are simply testing the market to find out what level of interest there may be in buying a home at a certain price point. The result, experts say, is a dilution of the so-called Columbia SC real estate seller's market due to a perceived glut in inventory.
What about buying power and financing?
As always, chances are if a buyer qualifies for a mortgage loan he should still be successful in buying a home in most markets – even in a seller’s market. Experts recommend using some strategy in planning your purchase. Here’s why.
According to the website survey referenced above, over half the home shoppers responding planned to purchase in seven months or so – in the spring and summer – the housing market’s most popular time to buy. Real estate professionals say if you want to avoid competing offers and not engage in bidding wars, consider buying now or either wait another full year. That way, the market is a little leaner and there aren’t as many buyers – first-timers and others – scrambling for a limited supply of homes on the market. One expert likened the strategy to shopping for Christmas presents in, say, September. You’ll likely have everything available you’re looking to buy – without the hustle and bustle of last-minute shoppers and long lines. Given the existing home supply challenges with low home inventory, which experts say probably can’t and won’t change substantially in 2017, smart buyers could enjoy reasonable prices and less competition by buying this winter or waiting until next fall.
If you’re not ready to enter the market at the present time – because you don’t have a down payment or a lease that doesn’t expire until next spring – remember that the real estate market is cyclical. The market will likely cool off in what has been the most active areas. What that will ultimately mean is homebuyers will probably again have the upper hand one day. One expert had this to say about market shifts.
“Balanced markets don't really exist for a long period of time – they’re really only transitional. It could be six months or a year, but at some point in time even the hottest of markets… head into a buyer’s market.
So, what’s the bottom line?
It’s likely, as experts agree, that the Columbia SC real estate seller's market will feature headlines including slight increases in interest rates as a result of a Federal Reserve move in the next few months. In addition, now that the elections are over there will be less daily concern about a U.S. economy in flux, although we’ll all keep a watchful eye on foreign trade and its impact on the global economy over the next year or two. Lastly, though the home ownership participation rate has been the lowest in decades, it appears to be climbing slightly, giving real estate professionals and economists hope for greater increases in 2017 and years beyond.
See more articles pertaining to a Columbia SC real estate seller's market in the section of articles on Columbia SC Real Estate News 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.
The Columbia SC real estate market is like that of other parts of the country. No doubt you’ve heard that home inventory is low and people choosing to sell are in the proverbial “catbird seat.” The basic economic principle of supply and demand is never more true than in a seller’s market – where supply is low and demand remains relatively high. However, is it the right time for you to sell? This article will examine that question and help you avoid seller’s remorse. Although we never work for sellers or list property for sale and always represent home buyers only, we know and can find the very best listing agents anywhere to help you with selling your home.
Columbia SC Real Estate: Should You Sell?
As is the case in most seller’s markets, it’s not unusual for homes in some areas to sell for more than the asking price. Anxious buyers with little to choose from often provide sellers with multiple offers – and a few prospective buyers may even get in a bidding war to get the home they want. Because home prices are so high, some real estate agents are trying to get potential sellers to list their homes for sale now.
Sure, it seems like a wonderful time to sell… but how do you know if it’s really a good time for you to sell? We’re all familiar with the phrase “buyer’s remorse,” the feeling that you may experience after you’ve bought something and are having second thoughts or sensing you made a mistake in judgment. In the case of homes under contract for sale, a prospective buyer can usually get out of the deal by using contingencies or other clauses that may provide him an “out.” “Seller’s remorse” is just as prevalent, but in most cases there aren;t contingencies that protect the seller. So, it’s important that you’re ready and committed to sell before you sign the sales contract – actually, before you list your home for sale.
To help you avoid seller’s remorse and enable the sales transaction to be as seamless as possible, remember the following Columbia SC real estate strategies.
Devise a Good Pricing Strategy
Naturally, a good real estate agent will encourage their sellers to list their homes competitively to ensure it’s received favorably in the marketplace. While some skeptical sellers may look at their agent’s recommendation as pricing their home low for a quicker sale, the agent is really looking out for the seller’s best interest.
Regardless of what the situation holds, a discussion about pricing strategy should be the most important part of the relationship between seller and agent. If there are issues on the asking price, it could set the tone for a rocky relationship. As a seller, should you find yourself in the position of disagreeing with your agent’s recommended price, you should discuss the options or, if necessary, get a second opinion on pricing.
You could list your home at first with a higher asking price. It may be against your agent’s advice, but if it makes you feel better it may be worth a try. However, be smart… if there’s little or no activity in the first two weeks, reduce the asking price. Our best advice is to listen to – and trust – your listing agent. After all, they’re the professional, not you. Either way, remember this: If you aren’t prepared to have a good long discussion on price with your Columbia SC real estate agent or if you’re wavering on the listing price, follow your instincts and realize you may not actually be ready to sell yet.
Plan for What do to After the Sale
We recently heard a story regarding the sellers of a home who decided to sell because their local market was enjoying higher than normal sales prices. They had previously tried to sell their home just six months earlier, but with no success. As they prepared to list their home for a second time they performed a variety of work. They had the home painted, they made necessary repairs, and had even put some of their excess belongings in storage to make their home more presentable to prospective buyers. Going on the Columbia SC real estate market, for them, was easy.
What the sellers of the home didn’t expect, however, was three offers within a matter of hours following the first open house showing. All three offers were more than the asking price. The buyers the sellers chose wanted to close the sale in thirty days. Ordinarily that’s a great combination – a sales price higher than the asking price, and a closing date in a matter of a few weeks. However, there was just one small problem: The sellers, once they moved, had nowhere to go. Due to poor planning – or a lack of a plan altogether – these sellers achieved what they set out to do, but failed miserably on the next step of what to do after the sale. Let’s continue to read what happened next.
Prepare to Negotiate
The new purchasers decided to try to see if they could arrange terms that would better suit their situation. The listing agent was able to negotiate a quick close including a 30-day-free rent-back arrangement, and an additional 30 days rent in which the sellers agreed to pay the buyer’s PITI payment. With the aid of quick thinking and good negotiating, the sellers and their agent were able to come up with an arrangement that was a “win-win” for both parties.
The lesson here is to be prepared to negotiate what you – and the other party – may want or need to have a successful sale.
In Doubt? Stay Out!
Homes can sell fairly quickly in the Columbia SC real estate market. Of course, that’s good news for the housing market. However, sellers should plan for their sale several months in advance. It should rarely, if ever, be a spur of the moment decision.
Utilizing a knowledgeable real estate agent early in the planning process is a good first step. Your agent can walk you through what you should do and what to expect. Lastly, here’s one simple, but vital piece of advice. If you are in doubt about whether to sell, if you have concerns about your physical, emotional or financial abilities in preparing to sell, or if you have any hesitation at all – don’t list your home yet. You can always enter the Columbia SC real estate market at a later date when and if the time is right for you.
You can find more articles pertaining to home selling tips in the Columbia SC Home Selling Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
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As foreclosures have taken a sudden nose dive, it appears that bidding wars have begun to break out among Columbia SC home buyers, as well as home buyers in markets all over America.
It would seem that the long awaited “bottom” in the Columbia SC real estate market has already passed, meaning, if you were waiting, you’ve waited too long.
Don’t let prices continue to go up and inventory continue to go down. Smart Columbia SC home buyers are looking for that perfect home now. Give us a call for more information, or search for homes at our site and let us know when you’re ready to start looking at properties.