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November 3rd, 2019 by Marco Santarelli
Many people have become interested in investing in real estate. Over the last decade or so owning real estate has become much more attractive because it is tangible and you can see it. In this article, our focus will be on the Greenville SC real estate market and investment opportunities in 2020.
Greenville, South Carolina is nestled in the foothills of the Blue Ridge Mountains. It has evolved from an agricultural and textile economy to a service-based on, though it isn’t experiencing the explosive growth of cities like Atlanta. Greenville is home to a little under a hundred thousand people.
That makes it the sixth largest metro area in South Carolina. However, the Greenville SC real estate market is much larger than this. Take the various suburbs into account, and the Greenville SC housing market contains about four hundred thousand people.
The larger metro area is often said to include the cities of Mauldin and Anderson. This brings the Greenville area up to almost a million people. That makes the Greenville SC real estate market the third largest in the Carolinas. 2019 proved to be a seller’s market for homeowners in the Greenville area as the demand continued to outstrip supply.
Is Greenville going to be one of the hottest real estate markets for investors in 2020? Let’s take a deep look at the latest Greenville housing market trends to come to a conclusion.
Greenville SC Real Estate Market Forecast 2020
The real estate data from Zillow shows that the median home value in Greenville is $188,700. Greenville home values have gone up 4.6% over the past year and their Greenville real estate market prediction is that the prices will rise 2.3% within the next year.
The median list price per square foot in Greenville is $142, which is higher than the Greenville-Anderson-Mauldin Metro average of $120.
The median price of homes currently listed in Greenville is $274,900 while the median price of homes that sold is $201,800. The median rent price in Greenville is $1,250, which is lower than the Greenville-Anderson-Mauldin Metro median of $1,295.
Here is the Greenville, SC real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.3% till Aug 2020.
Greenville SC Housing Market Forecast 2020 – 2021
Here is a short and crisp Greenville SC housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Greenville is 84% and it is predicting a positive trend.
The LittleBigHomes.com estimates that the probability for rising home prices in Greenville is 84% during this period. If this price forecast is correct, the Greenville home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Greenville, South Carolina Real Estate Market Forecast.
Greenville SC Real Estate Market Trends
We shall discuss some of the most recent housing trends in the Greenville area. Currently, Trulia has 1,136 resale and new homes for sale in Greenville, SC, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sale price in Greenville, SC is $239,500. The current Greenville real estate price trends show that the homes are selling for about $138/sqft.
In the past month, 267 homes have been sold in Greenville, SC as reported by Redfin.com. In addition to houses in Greenville, there were also 155 condos, 79 townhouses, and 9 multi-family units for sale in Greenville last month.
As per their real estate data, the Greenville SC housing market is somewhat competitive. Homes in Greenville receive 1 offers on average and sell in around 54 days. The average sale price of a home in Greenville was $224K last month, up 4.4% since last year.
The average sale price per square foot in Greenville is $126, up 5.0% since last year. Homes typically receive 1 offer. Properties for sale in the Greenville SC housing market sell for about 2% below list price and go pending in around 54 days. If it is a hot home, it can sell for around list price and go pending in around 35 days.
There are 1,437 homes for sale in Greenville, SC on Realtor.com. 79 of which were newly listed within the last week. The Greenville home prices range from $4.9K to $3.7M. Additionally, there are 222 Greenville rental properties for sale, and their rent price ranges $556 to $2.8K per month.
According to their statistics, in September 2019, the Greenville SC housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Greenville, the sellers have held good leverage in these negotiations in the past month.
On an average, they could sold homes for 98.57% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
The median list price of homes in Greenville, SC was $260K in September 2019, trending down -3.3% year-over-year. The median listing price per square foot was $121. The median sale price was $225.9K.
On average, homes in Greenville, SC sell after 59 days on the market. The trend for median days on market in Greenville, SC has gone down since last month, and slightly down since last year.
The median list price in Greenville, SC is $229,400 on Movoto.com. The median list price in Greenville went up 1% from September to October. Greenville’s home resale inventories is 48, which decreased 7 percent since September 2019.
The median list price per square foot in Greenville is $131. In September 2019 it was $130. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Greenville, SC Single Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
As per the real estate company called Neigborhoodscout.com, the median house price in Greenville, SC is just $275,787, which indicates that home prices in Greenville are above the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Greenville, accounting for 47.50% of the city’s housing units. One and two bedroom single-family detached homes are the most common housing units in Greenville.
Other types of housing that are prevalent in Greenville include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Greenville has a mixture of owner-occupied and renter-occupied housing.
The median sales price of a newly built single family home in the greater Greenville market, which includes Greenville and Pickens counties, is now more than $200,000 and rising.
The reasons behind the Greenville area’s rising costs for new and existing homes are twofold, both on the supply and demand sides, and are common in major markets across South Carolina, according to Research economist Joey Von Nessen.
Demand is growing at a very high rate compared to supply and the Greenville market is not yet ready to cope with it. Currently, there are 680 single family homes for sale in Greenville, SC on Zillow. Additionally, there are 207 single family homes for rent in Greenville, SC.
Under potential listings, there are about 7 Foreclosed and 2 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Greenville, SC Foreclosures And Bank Owned Homes Statistics
As per the Greenville foreclosure data by Zillow, in Greenville, South Carolina, 0.8 homes are foreclosed (per 10,000). This is greater than the Greenville-Anderson-Mauldin Metro value of 0.3 and also lower than the national value of 1.2.
The percent of delinquent mortgages in Greenville is 0.8%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Greenville homeowners underwater on their mortgage is 5.3%, which is lower than Greenville-Anderson-Mauldin Metro at 6.1%.
In August 2019, the number of properties that received a foreclosure filing in Greenville, SC was 0% higher than the previous month and 34% lower than the same time last year.
Home sales for July 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.
Best Neighborhoods to Invest in Greenville Rental Real Estate
If you are looking to invest in the Greenville rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Greenville rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Greenville real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Greenville rental property should be low. The neighborhoods in Greenville must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 23 elementary schools, 23 middle schools, 19 high schools and 36 private & charter schools in Greenville, SC. There are 31 neighborhoods in Greenville.
Some of the best neighborhoods in or around Greenville, South Carolina are Augusta Street Area, North Main Area, Pleasant Valley, South Side, Augusta Court, Isaquenna Park, Overbrook Historic District, Augusta Road Ranches, Gower Estates, Hollingsworth Park, Augusta Circle, Forrester Woods, Webster Estates, Jesse Jackson Town Homes Area, Parkins Mill, and Ridgeland at the Park.
McBee Avenue Area has a median listing price of $689.6K, making it the most expensive neighborhood. Dunean Mill is the most affordable neighborhood in Greenville , SC with a median listing price of $199.9K.
Here are the best neighborhoods to invest in Greenville rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Is Greenville SC a Good Place For Real Estate Investing?
Now that you know where Greenville is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Greenville SC rental real estate?
Many real estate investors have asked themselves if buying a rental property in Greenville is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Greenville SC housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Greenville but we have collected ten evidence based positive things for those who are keen to invest in the Greenville rental properties.
Investing in Greenville rental properties will fetch you good returns in the long term as the home prices in Greenville, SC have been trending up year-over-year.
Let’s take a look at the number of positive things going on in the Greenville SC real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Greenville SC real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. Affordable Greenville Real Estate
The average home in the Greenville SC real estate market is roughly 185,000 dollars. That’s about 30,000 less than the national average. More importantly, the Greenville SC housing market is a bargain compared to surrounding cities.
For example, the average home in Atlanta is roughly 260,000 dollars. You can buy three properties in Greenville for the cost of two comparable ones in Atlanta.
2. Its Growth
Greenville was the fourth fastest growing city in the United States in 2015. It is the fastest growing metro area in South Carolina. That alone will create significant demand for Greenville real estate investment properties.
More importantly, property values are growing. Prices in the Greenville SC real estate market went up almost five percent in 2019 and are expected to increase two to three percent in 2020.
3. The Demographic Momentum
One point in favor of the long-term strength of the Greenville SC real estate market is the demographic momentum. It feels younger than it is due to all the college students (median age is 38).
However, the area retains many young people thanks to high paying jobs, a family-friendly environment, the walkable downtown Millennials desperately want and a rich night life thanks to all the businesses catering to college students.
This leads to a younger than average population whereas many semi-rural communities are experiencing a population drain.
4. The Broad Economy That Boosts Greenville’s Real Estate
Greenville is halfway between Atlanta and Charlotte. It is far enough from each to have become the regional services provider. It is home to several colleges and a massive healthcare system. It is no longer as dependent on the textile industry as it once was.
The large highly skilled manufacturing labor pool led companies like Michelin and GE to open up here. An automotive research facility was set up here, as well. A former air base closed, but it was replaced with a public airport.
Furthermore, Lockheed Martin opened an aircraft and logistics hub here. This has created more and better paying jobs, leading many to move here from across the region.
5. The Gap between Supply and Demand for Houses
The cost of living in Greenville is lower than the national average, and lower housing costs contribute to this. However, the area is seeing a significant mismatch between demand and supply.
Most of the homes being built in the Greenville SC housing market cost between 250,000 and 300,000 dollars. Given the average income of 43,000 dollars, less than a third of the population can afford most of the new housing stock. This is driving up prices for the cheaper homes in the Greenville SC real estate market much faster than you’d expect.
6. The Massive Gap between Greenville Multifamily Housing Supply and Demand
Rents in Greenville, South Carolina have been increasing at rate three times higher than the national average. Nationally, rents grew by 1.2 to 1.3 percent in 2019, while they grew by more than 4 percent in the Greenville SC housing market.
Much of this is due to the lack of multifamily housing in the area by those that can’t afford a house or are reluctant to buy one like newcomers. There is a shortage of apartments in the area, though several hundred units came onto the market in 2019.
Builders have more interest in investing the limited materials and skilled labor they have into higher margin single family homes. And they can sell luxury homes with a higher profit margin.
7. The Massive Student Market
As the regional services hub, Greenville is home to several colleges. These include but are not limited to Furman University, North Greenville University, Bob Jones University, and a technical college.
A side benefit to being home to several different colleges is that you can have a diversified Greenville real estate investment portfolio. You can rent to the relatively stable student market without being tied to the rise and fall of a particular school.
8. The Decent Return on the Investment
The median rent in the Greenville SC housing market is 800 dollars a month. However, this figure includes the 600 to 700 dollar rent for a studio apartment and 1500 dollar a month four bedroom apartments.
A single family real estate investing in Greenville SC home could rent for 1300 to 1800 dollars a month based on location and size. Rental rates in the Greenville SC real estate market are higher in the suburbs than downtown Greenville.
9. The Landlord Friendly Environment
South Carolina is landlord friendly. You can give an Unconditional Quit Notice to tenants who violate the lease. You don’t have to give them the opportunity to correct the issue, especially if repeated.
You can comingle deposits and you don’t have to pay interest on them. There is no payment grace period or limits on late fees. The state doesn’t require you to have a license to be a landlord.
10. The Low Tax Burden
South Carolina has one of the lowest overall state and local tax burdens in the United States. It came in 42 out of the 50 states in a Tax Foundation analysis.
The average property tax rate was just over half a percent, and that’s half the national average property tax rate. The savings are only compounded by the lower than average property prices in the Greenville SC housing market.
Real Estate Investing in Greenville SC
Maybe you have done a bit of real estate investing in Greenville, South Carolina but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Greenville SC real estate investment opportunity would be a key to your success. If you invest wisely in Greenville rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Greenville rental properties are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Greenville you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Greenville, SC.
Greenville isn’t the largest, hottest or most expensive real estate market in the state. However, it offers a slowly growing population, strong job market, diversified economy that guarantees growth and an easy point of entry for investors.
Greenville, SC was ranked among best markets for seasonal investment in real estate in 2016. According to HomeUnion, winter is the perfect time to acquire single family rental properties in markets like Jacksonville, Tampa and Greenville.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Greenville SC real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
The other hot and affordable market to invest in real estate is Akron, OH. The Akron housing market has hit its low and is starting to appreciate. This is a safer choice than buying in depressed areas that may never recover. It also presents a great opportunity for real estate investors.
The cost of living in Akron is considerably lower than many other urban markets. This is reflected in the price of housing. The Akron housing market is incredibly affordable for investors.
The median home value is around eighty thousand dollars, nearly a third the price of the average home in the U.S. In Akron itself, the median home price is less than sixty thousand dollars.
Hudson is a notable exception. The average price of homes in that city hover around 300,000 dollars. This is the most expensive area between Akron and Cleveland.
Yet the average home price here is less than 150 percent of the median home price in the country. In short, even expensive homes in the Akron real estate market are affordable by national standards.
After all, they can’t afford to sell the house for less than they owe on it. There are others who can’t find properties in the more affordable parts of the Akron housing market because others are locked into their home thanks to negative equity. This can create opportunities for investors.
Another fairly good market to choose for real estate investment is Pasadena, CA. A Pasadena real estate investment may cost more than the national or even LA regional average, but it has a number of points in its favor.
Property values will likely remain strong, since the Pasadena area is seen as better than LA. It is less hostile to landlords and has long-term trends that guarantee strong future appreciation.
The median rent in the Pasadena real estate market is 1500 dollars a month, though a single family home will rent for much more. And those who want to rent a single family home face more competition since roughly half of homes are owned, not rented.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
About Greenville https://en.wikipedia.org/wiki/Greenville,_South_Carolina
Student market https://en.wikipedia.org/wiki/Greenville,_South_Carolina#Colleges_and_Universities
Economy & Demographic Momentum https://en.wikipedia.org/wiki/Greenville,_South_Carolina#Economy https://realestate.usnews.com/places/south-carolina/greenville
Landlord friendly https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters https://www.avail.co/education/laws/south-carolina-landlord-tenant-law
Supply versus demand for houses https://www.greenvilleonline.com/story/money/2018/02/09/greenville-housing-market-2018-few-starter-homes-buyers/319176002/
Supply versus demand for apartments https://www.greenvilleonline.com/story/news/2019/04/11/greenville-sc-apartment-rent-risen-triple-us-average-last-year/3423005002/
Low tax burden https://taxfoundation.org/state/south-carolina
Market Prices, Trends & Forecasts https://www.zillow.com/Greenville-sc/home-values https://www.realtor.com/realestateandhomes-search/Greenville_SC/overview https://www.movoto.com/greenville-sc/market-trends https://www.realtytrac.com/statsandtrends/sc/greenville-county/greenville
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