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November
26, 2007
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THE
TRUTH ABOUT SOUTH CAROLINA'S STABLE HOUSING MARKET
Nick Kremydas, CEO
S.C. Realtors
Despite what you may be hearing about a slumping national
housing market, South Carolina's housing market is strong
and stable. Our biggest problem is not foreclosures or
sub prime loans. Our problem is a lack of affordable and
attractive housing choices for the middle class. We need
to get focused on the factors that are really affecting
our market and take steps to address them.
All
real estate markets are unique and influenced by local
demand, local land-use and building rules, and a host
of other factors one cannot see from the generalized
scope of national news coverage.
In
2002, SC home sales set a new record at just over 43,000
homes sold. Over half of our metropolitan areas showed
price gains over the previous year, with the median
price at $152,000. At that time, homebuyers were confident
that the real estate market was strong and healthy.
In 2007, existing home sales are forecast to be close
to 58,000, with the median price holding strong at $160,000.
Both 2002 and 2007 show strong sales. Homes continue
to prove a good long-term investment. But this year,
public perceptions are different, due to generalized
and sensationalized national news reports.
Reports
of foreclosure and families thrown out of homes seem
to make sensational news stories. But, the truth is
far less titillating. Our market is stable and strong.
It is likely to remain so, thanks in part to population
growth and development in all corners of our state.
South Carolina is on track to grow by a million more
people over the next fifteen years. Every one of these
people will need a place to call home. Steady population
growth has also increased the value of homes in nearly
every corner of the state since 2000. It is a remarkable
trend that is mirrored in few other places in the country.
The reason for the constant increase in home values
is the increasing demand for housing in South Carolina.
2006
was the third best year on record for real estate sales
in South Carolina, according to SC Realtor® MLS
data. 2007 will most likely rank as the sixth best year
on record for sales. The market has adjusted, but only
after years of record sales and value appreciation.
We are already seeing signs that our markets are improving.
That makes us optimistic about 2008. South Carolina's
markets are strong and stable.
I
encourage all consumers looking to buy, sell or lease
real estate to get the true facts about your local real
estate market. Be sure to get these facts from a local
Realtor, because nobody knows South Carolina real estate
like a South Carolina Realtor.
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