South Carolina Housing Market Trends & Forecast for 2024
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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, 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 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 for 2024
In examining the South Carolina housing market, it’s crucial to delve into key metrics that shape the landscape. These metrics provide insights into the current state of the market and can be indicative of future trends. According to Zillow, a reputable source in real estate data:
Average Home Value:
The average home value in South Carolina stands at $284,797, reflecting a 3.3% increase over the past year. This figure provides a snapshot of the overall health of the market and signals positive growth.
Days on Market:
South Carolina homes are spending an average of 26 days on the market before going pending. This quick turnaround suggests a dynamic and competitive environment, with properties garnering attention swiftly.
Housing Inventory:
As of January 31, 2024, there are 19,804 homes available for sale in South Carolina. This inventory level is a critical factor in understanding the supply-demand dynamics that influence pricing and buyer-seller interactions.
New Listings:
In January 2024 alone, 5,247 new listings have entered the market. This influx of fresh properties contributes to the overall inventory and provides more options for potential buyers.
Median Sale to List Ratio:
As of December 31, 2023, the median sale to list ratio is 0.983. This ratio indicates the percentage of the listed price that a property ultimately sells for, offering insights into negotiation dynamics between buyers and sellers.
Median Sale Price:
The median sale price in South Carolina, as of December 31, 2023, is $282,333. This figure represents the middle point of all sale prices, providing a more accurate representation of the market than a simple average.
Median List Price:
As of January 31, 2024, the median list price is $346,467. This figure, in conjunction with the median sale price, helps gauge the pricing expectations of sellers and the affordability for potential buyers.
Percent of Sales Over/Under List Price:
Examining the data from December 31, 2023, 16.3% of sales were above the list price, indicating a competitive market where buyers are willing to pay premiums for desirable properties. On the other hand, 62.2% of sales were under the list price, highlighting the diversity in pricing strategies and negotiations in the market.
South Carolina Regional Housing Market Forecast
Spartanburg, SC: The housing market in Spartanburg is expected to experience a gradual but consistent growth. From February 29, 2024, to April 30, 2024, there is a projected increase of 0.3%, followed by a more substantial uptick to 1.6% by January 31, 2025. This suggests a positive trajectory and potential opportunities for real estate investors in the region.
Hilton Head Island, SC: Similarly, Hilton Head Island shows a steady rise, with a modest 0.2% increase by April 30, 2024, and a more significant surge to 0.9% by January 31, 2025. These numbers indicate a favorable housing market, making it an area of interest for both homebuyers and investors.
Charleston, SC: Charleston is forecasted to experience a growth of 0.4% by April 30, 2024, with a slight dip to 1.6% by January 31, 2025. Despite the minor decrease, the overall trend remains positive, signaling stability and potential for real estate development in the area.
Seneca, SC: Seneca displays a modest yet consistent increase, with a forecasted growth of 0.1% by April 30, 2024, and a more substantial rise to 1.3% by January 31, 2025. This indicates a market with opportunities for those looking for steady returns on real estate investments.
Greenwood, SC: The housing market in Greenwood is expected to see a gradual rise, with a projected increase of 0.1% by April 30, 2024, and a more significant uptick to 1.4% by January 31, 2025. These figures highlight the potential for growth and stability in the real estate sector in Greenwood.
Myrtle Beach, SC: Myrtle Beach demonstrates a positive trajectory, with a forecasted growth of 0.1% by April 30, 2024, and a subsequent increase to 0.6% by January 31, 2025. The market in Myrtle Beach appears to be on an upward trend, attracting attention from both homebuyers and investors.
Georgetown, SC: Georgetown shows positive signs in its housing market, with a forecasted increase of 0.2% by April 30, 2024, and a subsequent rise to 1% by January 31, 2025. This suggests a growing real estate sector, making Georgetown an area of interest for potential homebuyers and investors looking for appreciation in property values.
Columbia, SC: Columbia, being a key metropolitan area, is expected to witness a gradual yet steady growth in its housing market. The forecast indicates a 0.1% increase by April 30, 2024, and a further rise to 1.1% by January 31, 2025. The capital city’s real estate sector remains attractive for those seeking both stability and potential returns on investment.
Greenville, SC: The housing market in Greenville is anticipated to experience positive momentum, with a projected increase of 0.2% by April 30, 2024, and a subsequent rise to 1.1% by January 31, 2025. This makes Greenville a noteworthy location for individuals considering real estate investments in a thriving and growing community.
Florence, SC: Florence shows promising trends in its housing market, with a forecasted growth of 0.2% by April 30, 2024, and a further increase to 1.2% by January 31, 2025. The city’s real estate landscape appears to offer opportunities for both homebuyers and investors seeking appreciation in property values.
Newberry, SC: Although Newberry reflects a minor decrease of -0.1% by April 30, 2024, it is important to note that the market is expected to rebound with a growth of 0.8% by January 31, 2025. This highlights the resilience and potential for recovery in the housing sector of Newberry.
Orangeburg, SC: Orangeburg reflects a minor decrease of -0.1% by April 30, 2024, but the market is expected to recover with a modest growth of 0.7% by January 31, 2025. While facing a temporary dip, Orangeburg’s housing sector appears resilient, offering potential opportunities for those considering real estate in the area.
Sumter, SC: Sumter’s housing market is forecasted to experience a positive trajectory, with a projected growth of 0.1% by April 30, 2024, and a subsequent increase to 0.9% by January 31, 2025. This suggests a steady and potentially appreciating real estate landscape in Sumter, making it an area for consideration among homebuyers and investors.
Gaffney, SC: Gaffney shows positive signs with a forecasted growth of 0.1% by April 30, 2024, and a further increase to 1% by January 31, 2025. The housing market in Gaffney seems to offer stability and growth potential, attracting attention from those seeking opportunities in South Carolina’s real estate sector.
Bennettsville, SC: Bennettsville stands out with a substantial growth of 0.4% by April 30, 2024, and an additional 1% increase by January 31, 2025. However, it is important to note that there is a projected decrease of -1.8% by the latter date. This indicates a mixed scenario, and stakeholders should carefully assess the risks and potential rewards associated with the Bennettsville housing market.
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. Based on the available data and forecasts, there is no indication of an imminent housing market crash in South Carolina. The diverse regional forecasts, as provided by Zillow, reveal variations in growth rates across different metropolitan statistical areas (MSAs).
While some areas may experience minor corrections, the overall trend suggests a stable and resilient market. It’s important to note that real estate markets can be influenced by various factors, and continuous monitoring is essential. As of now, the data points towards a balanced market without any alarming signals of a housing market crash.
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
Data Sources:
- https://www.zillow.com/research/data/
- https://www.zillow.com/sc/home-values/
- https://www.zillow.com/rental-manager/market-trends/sc/
- https://fred.stlouisfed.org/series/ACTLISCOUSC#
- https://www.redfin.com/state/South-Carolina/housing-market
- https://www.rent.com/research/average-rent-price-report/
- https://celadonliving.com/pros-cons-living-in-south-carolina/
- https://www.wltx.com/article/money/economy/south-carolina-housing-supply-home-life/101-f724d2f9-e864-448a-b268-2515a0c68848
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