The South Carolina Housing Market is seeing a steady increase in home values and looks to continue this trend for the near future. Home values have increased 3% this past year and Zillow predicts that they will continue to rise another 2.6% for the next year. South Carolina Real Estate is primed for continued growth along with much of the nation. “It’s not a huge influx. It’s just kind of a steady healthy growth,” says real estate agent Danny Glenn. The gross domestic product is expected to grow by 3.4%, up from 2.8% last year. Mortgage rates will remain near record lows, and gas prices will most likely rise during the prime summer driving season before falling gradually as they did last year. As University of South Carolina economist Joey Von Nussen says about South Carolina housing market predictions, “If you like 2014, you’re really going to like 2015.” You can check out past South Carolina housing market predictions here.
While housing values continue to increase there has been a significant drop in home ownership, particularly with the 35 and under demographic. Because of this there is a large shortage of rental properties, in particular apartments. South Carolina investor Larry Goins says that current market conditions in the state are good for both flippers and rental property owners. While this may seem a point of some concern Joey Von Nessen stresses that the market for South Carolina homes for sale is “really leveling out,” and “that’s a good thing. You want stability.”
Stable growth along with employment gains will lead to more South Carolinians having more personal income. Jobs are expected to grow nearly 2% in 2015 continuing the trend seen in 2014. While manufacturing continues to be a major driving force in the state, more and more jobs are being created in the leisure and hospitality sectors. This means that people are visiting the state. And where there are tourists, there is a need for lodging, making South Carolina a serious contender when considering real estate investments.
So while these numbers all point to much optimism about the states future, there are some factors that could impede on South Carolina’s growth. “As a percentage of total economic activity, South Carolina exports more goods and services to Europe than most other states,” says Von Nessen. “This means that we are more vulnerable to a European recession than other parts of the country.” This will be something to watch as the financial crisis in Greece impacts the global market place and Europe in particular.
Top Factors for the 2015 South Carolina Housing Market
- The median rent price in South Carolina is $1,150. Because of the shortage of rental properties available, tenants are forced to pay higher prices. Many people still cannot get approved for loans or simply are not interested in owning their own home yet (mostly younger adults looking to save). Rental properties look to be a strong investment for those looking to purchase real estate.
- The median home value for South Carolina is $134,000 according to Zillow, while the median sale price is $170,000 and the median list price is $190,000. The average home spends 120 days on the market. This simply means that the homes on the lower end of the home value scale aren’t being listed as much as the homes of greater value. Plus, once the homes are on the market for a significant amount of time there is a lot of room for negotiation, hence the $20,000 difference in list and sale price.
- 5% of homes in South Carolina have negative equity compared to 15.4% U.S average, and 6.3% are delinquent on mortgage compared to the U.S. Avg of 6%. While it’s encouraging that this number is less than the national average, nearly one and a half out of every ten homeowner are underwater on their mortgage.
- 6 homes per 1,000 become foreclosed compared to the national average of 3.5 homes per 1,000. Foreclosures are great for those buying with cash. But people looking to borrow money tend to find it difficult to get approved when purchasing foreclosures.
- The market average for a 30-year fixed mortgage in South Carolina is 3.95%, right on par with the national average of 3.94%. These low rates encourage home buying, but they are expected to rise as to as high as 5% within the next year prompting more people to buy so they can take advantage of the rates while they are low.
Best Places to Live in South Carolina
Charleston SC real estate has a median home value index of $239,800. Because of the high Home Value Index the median rent also tends to be on the higher end, coming in around $1,600. Home values have increased 7.1% in the past year and Zillow expects that to rise another 2.9% in the next year. Likewise, LittleBigHomes.com predicts this trend to continue into 2017. Only 2.3 homes per 1,000 are foreclosed in Charleston, compared to the state average of 3.6. This means people buying in the area are better prepared in their purchase than their other South Carolinian counterparts. Also fewer properties are vacant and so the property values remain stable or increase.
The Charleston SC real estate is in the 58th percentile among metropolitan Real Estate Markets with a 1.71% appreciation, but Charleston real estate has not yet rebounded from the housing crash. The all time high in Home Price Index was 271.3 set back in 2008. Last year the Home Price Index was at 244.7, or 9.8% less, than in 2008. However, home prices have increased 5.76% in the last 12 months, and 21% over the last 10 years showing that the area has seen significant long term growth and looks to continue for the foreseeable future.
Myrtle Beach SC real estate has remained stable between April 2014 and April of this current year with little to no change in Home Value Index. But there has been a significant change in just the last 3 months. According to Movoto.com median list prices in the Myrtle Beach SC real estate market were around $170,000. Since April, this increased nearly $10,000 to $179,900. With the increase throughout the state in tourism stated earlier Myrtle Beach and its surrounding areas might be the best investment when it comes to land for sale in South Carolina. With an average rental price of $925, finding tenants should not be a problem considering there is already a shortage of rental properties available to suite the demand and the average rental prices in the Myrtle area are nearly $200 less than the state average.
Columbia SC real estate, much like Myrtle real estate, has not seen a lot of change in the Home Value Index as it hovers around the $148,000 mark much as it did a year ago. But there has been an increase in recent months, so that can be seen as a positive sign. The rental prices have also seen a reasonable increase, rising nearly $100 in the past year.
Another area aside from Myrtle that is of interest when thinking of investment and affordability is Rock Hill SC real estate where the median Home Value Index is $136,300. Not only are the homes affordable, but Rock Hill SC real estate home values increased by 4.7% over the past year and are predicted to rise another 3.3% in the next year. With median rental prices around the $895 mark, even if you cannot afford a mortgage quite yet, the rental prices are worth considering. With its close proximity to the bustling Charlotte North Carolina region, if you work in NC the short commute to Rock Hill could really stretch your dollar when it comes to home ownership.
Like Rock Hill, Greenville SC real estate has a high affordability factor. The median Home Value Index in the Greenville SC real estate market is $ 132,900. The area also offers a median rental price around $1,000 per month. Homes have seen their values increase 2.8% over the past year and housing market predictions have that number increasing another 2% this next year. LittleBigHomes.com has forecasted that the trend in home prices will rise not only this year but through the year 2017. Their forecasting methodology comes from testing current statistics against historical data, and the accuracy of their predictions is 86%. And to bolster buyer confidence even more, last year Greenville had a Home Price Index of 170.3, which is only .59% below the all time high Home Price Index set back in the first quarter of 2009. Over the past 10 years the Greenville Market is up 17% and there has been a significant increase of 5.03% in the last 18 months alone. Just 4 years ago in 2011 the Greenville Market saw its worst 3-year period of -8% following the housing market crash. So in a relatively short time the Greenville SC real estate market has made a significant comeback. In a recent Housing Opportunity Index (measures housing affordability) conducted by the National Association of Home Builders 78% of homes sold in Greenville at the end of last year were affordable for a family earning the median income making the real estate in the area a great place to invest.
Check out these Competing Housing Markets for South Carolina:
- 2015 North Carolina Housing Market
- 2015 Georgia Housing Market
- 2015 Florida Housing Market
- 2015 Tennessee Housing Market