South Carolina Real Estate Market: What to Expect in 2024?

The current median home sale price of $389,400 is rising slowly at 3.5% YoY. Moreover, homes have been sitting on the market for 60 days. This indicates that real estate market in South Carolina is now slightly less competitive.

Additionally, only 6,837 homes were sold in June 2024, down from 7,499 in the previous year. This decline suggests sellers are receiving fewer offers, mainly due to the recent NAR settlement. Concerns about selling prices and agent compensation have contributed to this market sluggishness.

The NAR settlement has removed the buyers’ agent compensation from the MLS. This may drive down home prices further. As a result, buyers will have improved affordability along with low mortgage rates.

Here are some tips for you to sustain in South Carolina’s housing market:

• If You Are a Home Buyer: With an inventory of 30K properties and the potential for further price drops, now is a good time to buy your new home. The low interest rates at 6.50%-6.84% are also in your favor. Consider negotiating for seller concessions to further benefit from the purchase.
• If You Are a Home Seller: The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.

So, How Is the Real Estate Market in South Carolina?

Balanced!

The number of homes for sale increased by 3.5% in June 2024  compared to the previous year. This is the 8th consecutive month the housing market has witnessed such growth. Single-family homes for sale are up by 4.3% and condos by 10.8%.

• Median Days on Market: The median days on the market for homes for sale is 57 days, up by 16 days YoY. This trend suggests a cooling demand in the South Carolina real estate market.
• Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 20.8% YoY. There are 30K homes for sale in South Carolina, with an average supply of 5 months.
• Average Home Prices: The median home price in South Carolina is $389,400.But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 98.3%,dropping by 0.31 pt YoY.
• Home Sales: As per June 2024 data, home sales decreased by 10.2% YoY! Only 6,837 homes were sold, compared to 7,499 last year.
• Average Rent Prices: Rental costs vary statewide. An average tenant in Greenville pays $1,410, while the one living in Columbia pays $1,398. You should check the rent rates in your region.

Why Is South Carolina a Buyer’s Market Now?

Buyers have more options to explore. Additional housing supply can balance the South Carolina real estate market and stabilize home prices. Let’s look at some more facts:

• More Days on the Market: Homes are spending more days on the market. This is visible in metro cities like Greenville, Columbia, and Charleston, where the average days on market is between 16 and 42 days.
• Low Housing Demand: The demand in Greenville is low with only 418 homes sold in June, down from 452 last year. Only 96 homes were sold in Columbia, down by 37% from last year.
• More Homes Have Price Drops: 30.9% of homes had price drops in June compared to 26% last year. The growing rate of price drops suggest a shift toward buyers’ market.
• Low Mortgage Rates: Even the mortgage rates are at record low at around 6.50%-6.84%. So, you can take advantage of low mortgage rates and get pre approved for a mortgage now.

South Carolina Housing Market Predictions 2024

Here are the predictions for South Carolina’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: Higher inventory and homes staying for long in the market will bring home shoppers back to the market.
2. Interest Rates are Expected to Drop: Mortgage rates hit 6.34% in July, 2024. NAR predicts the average interest rate will drop to 6.3% by year end. It will attract more buyers to apply for the loans.
3. New Home Constructions Will Shoot Up: 33.4% of single-family homes for sale in Q1 were newly built. Construction of homes has soared, and builders are responding to homebuying demand in South Carolina. This is fueled by remote work and low mortgage rates.
4. Home Prices Will Drop: Home prices are sluggish now and will gradually start to drop.
5. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. But in 2022, they offered only 86%, and around 70% in 2023. The slow market has affected iBuyers like Opendoor and Offerpad. They lost billions of dollars in Q3, 2023. Their continuous lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has reduced buyer agent’s fees to zero. Let’s understand it through some points:

1. Buyer Agents Will Be Affected: As per the NAR settlement, buyer agent’s fee is removed. Buyers may find it difficult to transact in the market without any agents. Buyer agents may probably become obsolete.
2. Seller Concession Will Increase: The number of offline sale transactions will increase. If sellers don’t have to pay any commissions to the buyer agent, buyers may request for seller concessions. Also, builders have begun to offer huge concessions to attract buyers.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K in 2023!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in South Carolina Going to Crash?

A housing market crash in South Carolina is unlikely. South Carolina home values have been up by about 3.7% over the years. A positive trend is predicted for 2025.

The net income inflow in South Carolina is over $1.8 billion each year. South Carolina’s job market is also strong. The unemployment rate is only 3.9%.

Additionally, the average cost of living in South Carolina is 6% lower than the national average. So, it is unlikely that South Carolina’s housing market would crash anytime soon.

If you are looking for a home in the Charleston, find your dream house here.

2024: Is It a Buyers’ or Sellers’ Market Now?

In the upcoming months of 2024, the housing market is expected to lean more in favor of buyers. Home prices are rising slowly, and the number of homes for sale (198K) has increased by 39.8% year over year. It offers buyers more options.

With mortgage rates around 6.34%, buyers have more purchasing power, and more homeowners are likely to list properties on South Carolina MLS. The 8.8% increase in new active home listings in South Carolina (currently at 43,964) has also brought back home shoppers. The properties for sale in South Carolina will increase.

So, whether you are looking for a condo in Greenvile or a single-family primary home in columbia, you will find your dream home in upcoming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

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