Pardon the rather boring title, but I can’t think of a catchy SEO-friendly way to say, “Here are the stats that show how the real estate market in Greenville, SC performed in August, 2020.” This post’s title may not be flashy, but it’s accurate. GGAR (Greater Greenville Association of Realtors) just released their Greenville (SC) housing market stats for August. Here’s a summary of what they reveal.
The market still favors sellers.
The sellers market continues in virtually every price segment, for every type of home. This is a change from last August when the segment of homes priced above $300,000 had inched just above the “6 months supply of inventory” threshold that is deemed to be the dividing line between a buyers market and a sellers market. The current supply of inventory for that segment is 5.6 months; so even that segment still slightly favors sellers.
Current supply of inventory for the Greater Greenville area is 3.4 months.
Some price segments or types of homes have a very low supply of inventory. At the end of August there was less than a 2-month supply of homes priced under $100,000. The inventory of 3-bedroom homes was 3.2 months.
Sellers received an average of 98.2% of their asking price.
Certain segments of the market received an even higher percentage. Move-in-ready starter homes and homes in popular subdivisions or school districts routinely entered “highest-and-best” status within 48 hours of hitting the market. Buyers listing homes in the $151,000-$200,000 range received an average of 99% of their listing price.
There are fewer homes for sale.
There were 155 fewer homes actively listed on the MLS at the end of August 2020 than there were one year ago. (4,276 compared to 4,121)
Homes are becoming more difficult to afford.
A key measure of this is the Housing Affordability Index. An index of 100 means that the median income earned by people in that market is 100% of what is usually required to qualify for a median-priced home, once existing interest rates have been factored in.
Even when you consider the historically-low interest rates available now, the Housing Affordability Index for Greater Greenville dropped from 108 a year ago to 99 at the end of August. The Index took a similar drop from 2018 to 2019, dipping from 117 to 108.
Several other trends merit watching.
Here are a few trends worth keeping an eye on, especially if you plan to buy or sell a home within the next few months.
Average and median home prices continue to rise.
This is a plus for sellers, unless they want to buy another home in the Greater Greenville market. They will feel the impact of rising home prices, then.
First-time buyers are finding that they may need to settle for a smaller home or move further out in order to find an affordable home.
It’s worth noting that rising prices also negatively affect the Housing Affordability Index.
Condos continue to pop up everywhere.
Sales of condos increased over 20% from last year. First-time buyers and buyers who are downsizing appreciate the fact that a condo requires less external upkeep, yet provides the benefits of home ownership.
Average days on market inched down from August 2019.
Average DOM dropped from 55 a year ago to 54. This is a bit below NAR’s national average of 59 DOM for the end of August. However, comparing year-to-date figures for the first 8 months of 2020 against the same period in 2019 shows an increase in DOM from 53 to 56 days. Market uncertainty at the height of the pandemic quite possibly affected this increase.
A critical key to a truly profitable real estate transaction is enlisting the help of a real estate agent who understands the trends in the local market.
At Walker’s Riverside Properties, we take the time to do the HOMEwork for you. We track the trends and follow the housing market stats so that we can guide our clients effectively. Contact us today for expert guidance through your next real estate transaction.