Columbia SC Housing Market Forecast 2024: Will it Crash?

The current scenario in Columbia, SC positions it as a buyer’s market. This implies that the supply of homes surpasses the demand, providing buyers with more options and potentially advantageous negotiation positions.

It has emerged as a vibrant and attractive city, drawing in both families and professionals seeking a thriving community with a blend of urban amenities and Southern charm. This growth has naturally impacted the city’s housing market, creating a dynamic landscape with unique trends and challenges for both buyers and sellers.

Whether you’re a first-time homebuyer, a seasoned investor, or simply curious about the local real estate scene, there’s something for everyone in this thriving Southern metropolis.

Columbia SC Housing Market Trends

Median Listing Home Price

According to Realtor.com, in January 2024, the median listing home price in Columbia, SC stood at $259.9K, reflecting a -1.6% year-over-year trend. This data suggests a modest decline in the market, offering an insight into the current state of property values in the area. It’s essential for both buyers and sellers to be aware of these fluctuations to make informed decisions.

Price per Square Foot

Another crucial metric to consider is the median listing home price per square foot, which was $142. This data provides a more granular perspective on property values, allowing individuals to gauge the cost relative to the size of the home they are interested in.

Sale-to-List Price Ratio

One noteworthy aspect is the sale-to-list price ratio, which stands at 99.87%. This indicates that, on average, homes in Columbia, SC are sold for nearly the asking price. This data is vital for potential sellers to set realistic expectations and for buyers to strategize their negotiations effectively.

Median Days on Market

An essential factor for both buyers and sellers is the median days on market, which stands at 46 days. On average, homes in Columbia, SC sell within this timeframe. The trend indicates a decrease since last month, yet a slight increase from the previous year. This information is crucial for understanding the pace of the market and making timely decisions.

Thriving Neighborhoods and Diverse Options:

Columbia boasts a diverse range of neighborhoods, each with its own unique charm and character. From the historic elegance of Shandon and Earlewood to the trendy vibes of Five Points and the family-friendly atmosphere of South Kilbourne, there’s a perfect neighborhood to suit every lifestyle.

For those seeking affordability, Greenview offers charming bungalows with a median listing price of just $100.5K. Meanwhile, luxury seekers will be drawn to Shandon, where the median listing price soars to $414.9K, with stunning mansions and sprawling estates.

Factors Influencing the Columbia SC Housing Market

Several factors contribute to the dynamics of the Columbia SC housing market, including:

• Economic Growth: Columbia’s growing economy, fueled by industries like healthcare, education, and government, has attracted a steady influx of new residents, driving up housing demand.
• Low Unemployment Rate: Columbia’s unemployment rate remains below the national average, indicating a strong job market and boosting buyer confidence.
• Desirable Lifestyle: Columbia’s diverse neighborhoods, affordable cost of living, and proximity to outdoor attractions make it an appealing place to live.
• Limited Inventory: The supply of available homes has not kept pace with growing demand, leading to a competitive market for buyers.

Columbia, SC Housing Market Forecast 2024 & 2025

Home Value: According to Zillow, the average home value in Columbia currently stands at $219,969, marking a noteworthy increase of 4.5% over the past year, according to data through January 31, 2024. This surge in value emphasizes the city’s robust real estate market.

Pending Time: Homes in Columbia are swiftly going to pending status, taking approximately 17 days. This quick turnaround time underscores the high demand and competitive nature of the housing market in the region.

• For Sale Inventory (January 31, 2024): With 904 properties available for sale, the market offers a diverse range of options for potential buyers.
• New Listings (January 31, 2024): There were 305 new listings, indicating a dynamic market with continuous activity.
• Median Sale to List Ratio (December 31, 2023): The ratio of 0.993 signifies a balanced market where properties are priced competitively.
• Median Sale Price (December 31, 2023): The median sale price is $216,333, reflecting the overall value of homes in Columbia.
• Median List Price (January 31, 2024): At $248,525, the median list price provides insights into the pricing trends in the current market.
• Percent of Sales Over/List Price (December 31, 2023): Notably, 22.7% of sales were over the list price, indicating strong demand and potential competition among buyers.
• Percent of Sales Under/List Price (December 31, 2023): Conversely, 52.8% of sales were under the list price, showcasing a balanced market with opportunities for negotiation.

Columbia MSA Housing Market Forecast

In terms of the Metropolitan Statistical Area (MSA) forecast for Columbia, SC, the data reveals a positive trajectory. As of January 31, 2024, the forecast indicates a growth of 0.1% by February 29, 2024, further expanding to 1.1% by April 30, 2024, and reaching an impressive 5.1% by January 31, 2025. This forecast suggests a promising outlook for the housing market, aligning with the city’s economic vitality.

The Columbia MSA encompasses the city of Columbia and its surrounding counties, serving as a geographical region with shared economic and social ties. This designation aids in analyzing and forecasting economic trends on a broader scale. The Columbia MSA includes various counties, contributing to its diverse and expansive housing market. These counties collectively shape the overall real estate landscape, influencing factors such as demand, supply, and pricing.

Are Home Prices Dropping in Columbia?

The data as of January 31, 2024, does not indicate a drop in home prices. With the average home value showing a 4.5% increase over the past year, the market is demonstrating resilience and stability. This rise in value aligns with the overall positive forecast for the Columbia housing market, suggesting that home prices are not currently on a downward trend.

Will the Columbia Housing Market Crash?

As of the current data and forecast, there is no indication of an imminent housing market crash in Columbia. The positive trajectory in the MSA forecast, coupled with the steady increase in average home value, paints a picture of a robust and sustainable market. It is essential to monitor economic factors, but the current data does not signal any alarming trends that would suggest a market crash in the near future.

Is Now a Good Time to Buy a House in Columbia?

Considering the balanced nature of the Columbia housing market, now presents a favorable time for prospective buyers. The 17-day average for homes to go pending suggests a dynamic market with timely opportunities. With the median sale to list ratio at 0.993, indicating fair pricing, and the positive forecast for the MSA, buyers can confidently explore the available 904 properties. Timing is crucial in real estate, and the current indicators suggest that now is indeed a good time to consider purchasing a home in Columbia.

Should You Invest in the Columbia Real Estate Market?

Investing in real estate is a significant decision that requires a thorough understanding of the local market. Columbia, South Carolina, presents various factors that make it an attractive option for investors. Let’s delve into these factors in detail.

Population Growth and Trends

• Columbia has been experiencing consistent population growth over the years. The city’s appeal is drawing in new residents, contributing to a growing demand for housing.
• Population trends indicate that the city’s growth is likely to continue, creating a stable and expanding tenant base for real estate investors.

Economy and Jobs

• Columbia boasts a diverse and thriving economy with the presence of industries like healthcare, education, and government. This economic diversity contributes to job stability and growth.
• The city’s low unemployment rate suggests a strong job market, which is crucial for attracting residents and renters. This economic stability is favorable for real estate investors.

Livability and Other Factors

• Columbia offers a high quality of life with a blend of cultural amenities, outdoor recreation, and a vibrant downtown scene, making it a desirable place to live.
• The city’s well-developed infrastructure, including schools, healthcare facilities, and entertainment options, enhances its appeal for residents and renters.

Rental Property Market Size and Growth for Investors

• Columbia’s rental property market is substantial and has shown growth. The influx of new residents and a thriving job market contribute to a strong and consistent demand for rental properties.
• The city’s diverse economy and educational institutions attract students and young professionals, further boosting the demand for rental housing. This trend is advantageous for investors looking for reliable rental income.

Other Factors Related to Real Estate Investing

• South Carolina offers tax incentives and favorable regulations for real estate investors, making Columbia an attractive location for investment properties.
• The city’s real estate market has demonstrated stability and steady appreciation in property values over time, providing potential for long-term capital growth.
• Proximity to major cities like Atlanta and Charlotte enhances Columbia’s accessibility and connectivity, making it a strategic location for real estate investments.

References:

• https://www.zillow.com/columbia-sc/home-values/
• https://www.realtor.com/realestateandhomes-search/Columbia_SC/overview