Are You Prepared for South Carolina 2021 Real Estate Market?
With the uncertainty of COVID-19 looming early in 2020, economists were wary, but the South Carolina real estate market continued to grow. In 2021, markets across the Palmetto State are forecasted to continue that upward trend. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across South Carolina should gear up for another sunny year.
2021 South Carolina Real Estate Outlook: Heating Up
In December 2020, the average home in South Carolina was valued at $203,328. That’s a 6.7% increase from last year, and Zillow predicts the market will accelerate and rise another 10.0% within the next year. High real estate activity, despite 2020’s challenges, is a promising sign that 2021 could be profitable for agents and sellers alike.
Additionally, home sales across South Carolina grew 19.0% since last year. The number of days properties in Columbia spent on the market also fell to just 13 days. Thanks to record low-interest rates that are nearly a point lower than last year and continued strong demand, South Carolina will likely be a seller’s market as 2021 unfolds.
Rent prices, on the other hand, have increased 3.8% year-over-year statewide but still remain 18.2% lower than the rest of the country. Meanwhile, a total of 1.2% of South Carolina mortgages were reported as delinquent. So, while new transactions continue to boom and warmer weather draws more and more people to South Carolina, current homeowners will thrive as well.
2020 South Carolina Real Estate Market Data
|Zillow Home Value Index||$203,328|
|1-Year Change on Home Values||+6.7%|
|1-Year Change on Rent Prices||+1.5%|
|Homes With Negative Equity||2.9%|
|Delinquent on Mortgages||1.2%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for South Carolina
In November 2020, the Bureau of Labor Statistics reported that South Carolina’s unemployment rate was 4.4%, down from 8.7% in July. As it sits, South Carolina is comfortably below the national unemployment rate of 6.9%, and that’s likely to continue improving as the tourism and hospitality industries return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents the year ahead.
The Palmetto State also sports some other very attractive features, like a business-friendly environment with companies like Boing and Michelin creating lots of opportunity in the area. Meanwhile, its warm weather and sea breezes are attracting others who work in a more digital space. South Carolina, as it turns out, is a hot spot for those with new work-remote positions looking to escape the high taxes, hustle and bustle, and harsh winters of large northeastern cities. With that said, more New Yorkers are eyeing South Carolina so expect inventory to remain low, higher sale prices, and bidding wars. South Carolina real estate, while it’s still a great investment that affords homeowners a high quality of life, will play out to be a strong seller’s market in 2021.
With a robust 2021 economic forecast for South Carolina, local real estate agents will need to be at the top of their game and prepare clients for the likelihood of bidding wars. However, these out-of-state buyers are looking to make South Carolina their permanent residence and are thus likely willing to pay more, which could push the market to new heights. With a myriad of opportunities on the horizon, there has never been a better time to help your fellow South Carolinians sell their current house and find the property of their dreams.
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