Welcome to the dynamic South Carolina housing market, where trends are constantly evolving and opportunities abound. As we head into 2023, experts predict continued growth in the state's real estate sector. From historic Charleston to vibrant Greenville, we'll explore the latest prices and trends, as well as what the forecast holds for the future. Whether you're a first-time homebuyer, a seasoned investor, or simply curious about the market, this is the guide for you. Let's dive in!
South Carolina's housing market is currently characterized by a significant demand-supply mismatch, causing challenges for many low-income households in the state. According to a recent study conducted by the University of South Carolina's business school and SC Housing, the increase in demand for housing has not been matched by a corresponding increase in housing supply. The study also highlighted rising mortgage interest rates as another challenge facing the state's housing market.
The study conducted by USC and SC Housing found that over 30% of households making between $35,000 and $75,000 annually are housing cost-burdened, with over one-third of their income spent on housing. The study also showed that low-income households, making less than $35,000 annually, face the biggest challenge in finding affordable housing.
This situation has been further exacerbated by rising mortgage interest rates resulting from the Federal Reserve's efforts to control inflation. The supply and demand mismatch has made it difficult for many prospective homebuyers to find homes within their budget, with some opting to stay put in their current homes.
South Carolina Housing Market Forecast 2023-2024
The South Carolina housing market has been experiencing its fair share of activity and evolution. As we delve into the current state of the market and peer into the crystal ball of forecasts, we gain insight into the trends and opportunities that may define the real estate landscape in the coming months.
Present Reality: South Carolina Housing Landscape
According to Zillow, as of July 31, 2023, the average home value in South Carolina is noted at $287,618. This figure signifies a noteworthy increase of 3.2% over the past year, underscoring the upward trajectory of the state's real estate market. Furthermore, homes in South Carolina exhibit a rapid pace, with an average time of 12 days on the market before transitioning to the pending status.
Typical Home Values and 1-year Value Change
The typical home value of $287,618 stands as a testament to the state's real estate landscape. A 1-year value change of +3.2% showcases a market that's characterized by steady growth and an attractive investment potential.
The median sale to list ratio, as of June 30, 2023, is a strong indicator of the market's balance and stability. A ratio of 0.994 suggests that homes are being sold close to their list prices, signifying a marketplace where sellers and buyers are finding common ground.
Distribution of Sales
When we consider the distribution of sales, it's interesting to note that, as of June 30, 2023, 24.4% of sales occurred above the list price, while 52.6% of sales were under the list price. This dynamic range showcases a market where opportunities for negotiation coexist with segments of increased competition.
Median Days to Pending
The median days to pending, which stands at 12 days as of July 31, 2023, paints a picture of a market where homes are moving quickly. This rapid pace reflects both the desirability of properties in the region and the proactive nature of both buyers and sellers.
South Carolina MSA Housing Market Forecast
Top 10 MSAs in SC Poised for Highest Price Growth by July 2024
As we shift our gaze toward the future, the housing market forecast for South Carolina's Metropolitan Statistical Areas (MSAs) unveils a promising trend. Based on the data projections, here are the top 10 MSAs where home prices are expected to witness the highest growth by 2024:
- Seneca, SC MSA: The forecasted growth here is set to be remarkable, with prices projected to rise from 1.1% in August 2023 to an impressive 9.4% by July 2024.
- Myrtle Beach, SC MSA: This MSA is slated to witness substantial growth as well, with a projected increase from 0.5% in August 2023 to 8.5% by July 2024.
- Hilton Head Island, SC MSA: Home prices are anticipated to rise from 0.8% in August 2023 to 8.4% by July 2024, making this region an attractive prospect for potential buyers and investors.
- Georgetown, SC MSA: With a projected growth from 0.9% to 8.2% between August 2023 and July 2024, Georgetown is poised to see noteworthy appreciation.
- Spartanburg, SC MSA: The forecast suggests a rise from 0.7% to 7.8%, underscoring the potential for growth in this vibrant MSA.
- Greenville, SC MSA: This MSA is expected to experience growth from 0.8% to 7.4%, reinforcing the ongoing positive trajectory of the region's housing market.
- Columbia, SC MSA: A projected increase from 0.6% to 6.9% between August 2023 and July 2024 highlights Columbia's stability and potential.
- Charleston, SC MSA: The forecasted growth here is set to be from 0.7% to 6.8%, reflecting the enduring appeal of Charleston's real estate market.
- Newberry, SC MSA: Although the growth is more moderate, with a projection from 0.1% to 6%, it still represents a positive outlook for Newberry.
- Greenwood, SC MSA: While Greenwood is anticipated to experience more modest growth, from -0.4% to 5.5%, it still shows signs of resilience and potential recovery.
Read About: Charleston SC Housing Market Trends
Will The South Carolina Housing Market Crash?
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. According to recent reports, the South Carolina housing market has been experiencing a surge in demand and rising prices. This is partly due to an influx of people moving to the state from other parts of the country, attracted by the state's relatively low cost of living, pleasant climate, and the growing job market.
South Carolina is a fantastic place to live or retire due to its pleasant temperature and low total cost of living. According to a Retirement Living poll, South Carolina is the fourth best state in which to retire. South Carolina boasts a reduced cost of living and several lovely beaches that are warm almost all year.
However, some experts have expressed concern that this rapid growth in demand and prices could eventually lead to a housing bubble and subsequent crashes. If interest rates were to rise significantly, for example, it could make it more difficult for buyers to afford homes, which could lead to a decline in demand and a subsequent drop in prices.
That being said, it's important to note that the South Carolina housing market has weathered economic downturns in the past and has generally shown resilience. Additionally, there are many factors that could impact the housing market in the future, including changes in government policies, demographic shifts, and natural disasters.
Ultimately, it's difficult to say with certainty whether the South Carolina housing market will crash. However, it's always a good idea to do your own research and consult with experts in the field before making any significant financial decisions.
South Carolina Housing Supply Graph