South Carolina Housing Market Rebounding, But Still Behind National Jump
Home prices in South Carolina are still on the rise, but the increase still falls behind the national jump in rates. Prices are still expected to rise in 2018 at a moderate pace.
In 2017, home prices increased by 4.7% in the state. On the national level, home prices jumped 7%. The increase has been driven primarily by low inventory, high demand and favorable interest rates.
photo/ public domain photos via pixabay
In South Carolina, the median home price is $188,500, according to S.C. Realtors Association. Median prices vary greatly from region to region in the state. In Charleston, the median home price is $250,000, while the median price in the Midlands is around $160,000.
Myrtle Beach and Greenville have median prices below the $200,000 mark. Myrtle Beach’s market is mixed, with significant growth in the condo market. Still, home buyers can find condos in the Monterey Bay area in the low $100,000s.
Home prices in Myrtle Beach increased by 4.2% last year, but buyers didn’t see the same level of decline in inventory as other areas of South Carolina.
Low inventory remains a problem in South Carolina, and many other states. Tight inventory is expected to continue through 2018.
Anti-growth policies in the local government and higher prices are making it more difficult for home buyers to find affordable homes.
In Charleston, the issue is supply and demand. With Volvo Cars and Mercedes-Benz opening up facilities in the region, job seekers are heading to the area. Retirees are also looking for a home on the coast. Low supply and high demand from a wide range of buying markets is driving up prices in the area.
Greenville, Charleston, Myrtle Beach and Rock Hill housing markets all performed well this year. Prices rose 4.2% in Charleston and are expected to increase in the coming year. Experts say the price increase may be higher in some parts of Charleston.
In areas like Mount Pleasant, where home prices are already above the $400,000 mark, there are calls to limit growth which will only drive up prices even further.
Growth in the housing market is being driven by a strong local economy. The labor market in South Carolina is more favorable than any time in the last eight years.
The state is still waiting to see whether lower federal taxes will help businesses create more jobs and invest more. Changes may boost business spending, but some worry that businesses will hold onto their new savings to increase their bottom lines.
Tourism is expected to thrive in the coming year. While the eclipse won’t draw the large number of visitors it drew in 2017, the industry is expecting another record year.
Author: Jacob Maslow
photo TaxRebate.org.uk via Flickr
