Welcome to the dynamic South Carolina housing market, where trends are constantly evolving and opportunities abound. As we head into 2024, experts predict continued growth in the state's real estate sector. From historic Charleston to vibrant Greenville, let's dive into 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.
A Challenge of Demand and Supply
South Carolina's housing market is currently characterized by a significant demand-supply mismatch, causing challenges for many low-income households in the state. While demand for housing continues to rise, the housing supply has not kept up. This has resulted in rising mortgage interest rates, further exacerbating the situation. According to a study conducted by the University of South Carolina's business school and SC Housing, over 30% of households making between $35,000 and $75,000 annually are burdened by housing costs, with over one-third of their income spent on housing. Low-income households making less than $35,000 annually face the biggest challenge in finding affordable housing.
This supply and demand mismatch has made it difficult for many prospective homebuyers to find homes within their budget, with some choosing to stay in their current homes.
South Carolina Housing Market Forecast for 2024
Despite the challenges, the current state of the South Carolina housing market suggests a nuanced scenario that appeals to both buyers and sellers. The average home value stands at $283,316, with an average time on the market of 18 days. Let's take a closer look at the key trends:
- For Sale Inventory: As of November 30, 2023, the market recorded 19,946 homes for sale, contributing to the overall vibrancy of real estate transactions.
- New Listings: November 30, 2023, saw 6,213 new listings, reflecting continued interest in the South Carolina housing market.
- Median Sale Price: The median sale price reached $287,083, while the median list price stood at $349,900, providing insight into the financial dynamics of property transactions.
- Sale to List Ratio: With a median sale to list ratio of 0.985, there's a balance between listed and sold prices in the market.
- Percent of Sales: Notably, 18.2% of sales were over the list price, underscoring competitiveness in certain segments, while 60.3% were under the list price, reflecting diverse pricing dynamics.
Regional Housing Forecast in South Carolina
Zooming into specific regions within South Carolina provides a nuanced understanding of localized market trends. Here's a glimpse of what the future may hold, based on Zillow's forecast for various metropolitan statistical areas (MSAs):
- Hilton Head Island, SC: This MSA is anticipated to experience a marginal growth of 0.1% by the end of February 2024, followed by a slight dip of -0.1%. However, a positive trajectory is forecasted with an expected growth of 1.7% by November 2024.
- Spartanburg, SC: With a predicted growth of 0.2% and 0.1% by the end of February 2024, this region is expected to maintain a stable market. The forecast for November 2024 suggests a growth of 1.4%.
- Seneca, SC: While experiencing a minor decline of -0.1% and -0.3% by February 2024, the market is projected to rebound with a growth of 1.1% by November 2024.
- Greenwood, SC: Anticipating fluctuations with a -0.2% decrease, followed by a 0.2% increase by February 2024, this region is poised for a 1.1% growth by November 2024.
- Georgetown, SC: Forecasting a stable market with minimal changes, this MSA is expected to see a 0% change, followed by a -0.2% decrease and a 0.9% growth by November 2024.
- Columbia, SC: This MSA is anticipated to experience a positive trajectory with a forecasted growth of 0.2% by the end of February 2024, followed by a 0.1% increase. The market is expected to maintain its momentum, reaching a growth of 0.7% by November 2024.
- Charleston, SC: With a steady forecast, this MSA is expected to see a growth of 0.2% and -0.1% by February 2024. The market is anticipated to remain stable, with a 0.6% growth by November 2024.
- Newberry, SC: Demonstrating robust growth, this MSA is predicted to experience a 0.4% increase, followed by a significant 0.6% growth by February 2024. The positive trend continues with an additional 0.6% growth by November 2024.
- Greenville, SC: While exhibiting moderate changes, the Greenville MSA is expected to see a 0.1% growth by February 2024, followed by a -0.1% decrease. However, the market is forecasted to maintain stability, with a 0.4% growth by November 2024.
- Myrtle Beach, SC: Facing a temporary downturn, this MSA is expected to experience a -0.2% decrease by February 2024, followed by a more substantial -1% decrease. Nevertheless, the market is poised for a gradual recovery, with a 0.3% growth by November 2024.
- Florence, SC: Forecasting positive growth, the Florence MSA is expected to experience a 0.5% increase by the end of February 2024, followed by another 0.5% growth. However, the market is predicted to face a minor correction with a -0.1% decrease by November 2024.
- Orangeburg, SC: Demonstrating stability, this MSA is forecasted to see a growth of 0.2% and a minor dip of -0.1% by February 2024. The market, while resilient, is expected to experience a more substantial decline with a -1% decrease by November 2024.
- Sumter, SC: Facing challenges, the Sumter MSA is expected to see a -0.2% decrease by February 2024, followed by a more significant -0.6% decrease. The market is forecasted to undergo further correction with a -1.8% decrease by November 2024.
- Gaffney, SC: Anticipating a period of adjustment, the Gaffney MSA is expected to experience a -0.5% decrease by February 2024, followed by a -0.4% decrease. The market is forecasted to face more substantial challenges with a -2.1% decrease by November 2024.
- Bennettsville, SC: Forecasting significant changes, this MSA is anticipated to see a -1.2% decrease by February 2024, followed by a more pronounced -2.9% decrease. The market is expected to undergo a considerable correction with an -8.6% decrease by November 2024.
Will The South Carolina Housing Market Crash?
Amidst rumors of a market crash, local data does not corroborate this at the moment. Based on available data and forecasts, there is no indication of an imminent housing market crash in South Carolina. While some areas may experience minor corrections, the overall trend suggests a stable and resilient market.
South Carolina has historically weathered economic downturns and shown resilience in its housing market. Factors such as changes in government policies, demographic shifts, and natural disasters can influence the market in the future. It's important to continuously monitor the trends and consult with experts before making significant financial decisions.
South Carolina offers a pleasant climate, low cost of living, and a growing job market, making it an attractive place to live or retire. While there are concerns about rapid growth in demand and prices leading to a potential housing bubble, the market remains steady for now.
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