Spartanburg SC’s Boiling Real Estate Market Remains Steady
It’s a hot real estate market right now in Spartanburg County, which is good news for sellers and bad news for buyers, according to local agents.
“If you want to sell, now is an amazing time to cash out on a house,” said Ray Crotts, president of the Spartanburg Area Realtors Association. “You may be one of the lucky ones who get $40,000 over the requested bid without any valuation contingencies.”
In short, house prices are skyrocketing due to high demand and shortage of supply.
“I’m saying there almost has to be a new definition of an affordable home,” Crotts said.
Homebuyers are competing like never before, especially local buyers trying to match high offers from a growing number of residents who have moved to Spartanburg County from the West Coast, he said. .
“We’ve always seen a lot of buyers from New York, New Jersey, Pennsylvania, Ohio and Florida, but now we have a huge influx of buyers from California and Washington State,” said said Crotts. “These people come in with loads of cash and will pay way more than the asking price and still feel like they’re getting a deal from where they came from.”
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Dennis McCall, MLS president of the Spartanburg Association of Realtors, said prices are rising for new and existing homes.
“We’ve had more multiple offers in the past two years than ever before,” McCall said. “Most of them happen in the first few days that homes are on the market. With this competitive atmosphere, many homes are contracted for more than the asking price and some are bought without an appraisal.”
The county’s hottest areas are in northern and western Spartanburg County, including Boiling Springs, Duncan, and Reidville.
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“Areas such as Woodruff and Cowpens are also doing well,” McCall said. “Truly, no part of the county is doing badly. Homes for sale in all areas sell out within days of hitting the market. New construction, as well as townhomes, are popping up anywhere a builder can get a building plot.”
Median home prices rise across SC
Combined with soaring building material prices, the median price of a home in Spartanburg County is now $245,000 in January 2022, up 15.3% ($32,500) from January 2021. , according to the South Carolina Realtors Association.
Over the past six months, the median price in Spartanburg County for a typical three-bedroom, two-bathroom home on a small lot was $270.00. In the city, it was $223,800, Crotts said.
In January alone, the average selling price in January was $278,740, down from $240,252 the previous January and $199,316 in January 2020, he added.
Existing starter homes that have two or three bedrooms, one to one-and-a-half bathrooms currently sell for between $140,000 and $160,000, McCall said.
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Still, it’s lower than the statewide median home price of $285,870 and lower than Charleston’s, $350,000; Greenville, $280,000; and Central Carolina, $338,500. Hilton Head has the highest median home price at $482,500, according to the SC Association of Realtors.
John Hunt, founder and owner of MarketNSight, a Southeast housing research group, said new homes typically account for only about a quarter of total foreclosures.
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“Unfortunately for low-income and first-time buyers, inventory at all price points is extremely low,” he said. “Still, builders have resumed business, although builders face significant challenges … including supply and material shortages.”
In Spartanburg County, supply is down
Inventory levels in January 2022 were down 43.6% from a year earlier in Spartanburg County. There were 521 real estate advertisements in January 2020, compared to 924 in January 2021 and 1,562 in January 2020.
Additionally, there was only one month of inventory supply in January 2022, down 44.4% from 1.8 months in January 2021 and 3.3 months in January 2020.
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According to SC Realtors, 2021 saw 32.3% fewer listings of homes for sale compared to 2020.
Real estate agents said that while new subdivisions and townhouse developments continue to dent inventory, it’s still not enough to meet demand and stabilize prices.
In January 2022, 20 new 635-unit residential housing plans were submitted to the Spartanburg Planning Commission. In 2021, there were 225 residential projects totaling 4,078 units, nearly double the 2020 totals of 157 projects and 2,312 lots.
Fast turnaround times in Spartanburg County
Meanwhile, homes are selling faster than ever.
In Spartanburg County, the average days on market in January 2022 was 17, down 38% from 27 days in January 2020 and the lowest days on market nationwide. State. For comparison, in 2020 the average number of days a home was listed for sale in the county was 85.
Rising mortgage rates
Meanwhile, real estate agents agree that although fixed mortgage interest rates are likely to rise this year, it should have little effect on the Spartanburg-area housing market.
The average fixed rate mortgage for 2019 was 3.94% and it was 2.96% in 2021, the lowest annual average in 30 years, according to Credible, a digital consumer website.
At the start of March, the fixed rate mortgage ranged from 3.5% in the short term to 4.5% in the long term.
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“Even though the rate may be a bit higher than what we’ve been used to for the past three to four years, it’s still a good time to buy and sell,” McCall said.
“For the typical seller, low inventory and rising prices make this a great time to sell, without having to wait a long time for an offer,” he added. “And with multiple likely offers, they can get their prices right now.”
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McCall and Crotts said their advice to buyers is to be prepared to offer a little more than the asking price and pay their own closing costs.
“For buyers – good luck. Be ready to go,” Crotts said. “Don’t get carried away with the hype. I really fear for the buyer who pays a ton above the asking price and appraised value if the market changes or if they have to sell before getting their refund. the mortgage.
Contact Bob Montgomery at [email protected] Please support our coverage of Spartanburg County with a digital subscription.