For the last few years, we’ve definitely been experiencing a “seller’s market,” meaning that there was lower inventory to meet the demand of buyers. Homes were selling for well above asking price within a few days of hitting the market, and in 2021 the average 30-year mortgage interest rate was lower than it’s been at any time since 1974.
South Carolina, in particular, saw a boom in buyers coming into the market. The pandemic caused a huge shift in people’s housing priorities. With everyone working from home, young professionals no longer needed – or wanted – to be living in expensive, congested cities. Young families who were home-schooling kids while parents tried to get work done wanted more space to spread out both indoors and outdoors. And many older professionals decided to retire early and head for warmer climates. Add all of those factors into an equation that already saw South Carolina as a top-ranked relocation destination, and our housing market was booming.
Luckily for both buyers and sellers, we’re anticipating that while 2023 will continue to maintain a very strong and competitive market, some of the pitfalls of 2022 will be less of an obstacle.
A Quick Recap of the 2022 Housing Market
Last year (2022) was an interesting time for the housing market across the country and in South Carolina.
In an effort to fight inflation and stave off a recession, interest rates doubled between March and September – the first time that’s ever happened. This, unfortunately, resulted in many homebuyers lowering their budgets to account for the higher interest rates and knocked some buyers out of the housing market altogether. In turn, sellers experienced a longer days-on-market average than we had been seeing since 2020 and slightly lower sale prices.
If you’re ready to explore buying or selling a home in the Greenville, SC, area – give the team at Wilson Associates a call.
Our Predictions for the 2023 Housing Market
In 2023, we’re predicting that the South Carolina real estate market is going to continue to shift in a way that should work in favor of both buyers and sellers.
Lower Interest Rates
While South Carolina, and especially the Greenville area, will continue to be in high demand for buyers, interest rates are beginning to drop a bit. Lower interest rates are great news for everyone involved in a transaction since they will bring buyers who were hesitant about locking in a high-rate back to the market and may allow them to boost their budgets.
Slight Price Decreases
In addition to lower interest rates, buyers can also expect to see slightly lower asking prices. Sellers shouldn’t worry too much about that, though – it won’t be a very dramatic dip, and sale prices are still likely to be well above the pre-pandemic averages. The slight decrease will, however, help inventory move a little bit more quickly than it has been for the past few months and will create a bit more competition in certain neighborhoods, which is always great for sellers.
Inventory Will Decrease
Following the trend that we’ve been seeing for the last few years, it’s likely that inventory will continue to decrease, meaning that buyers will have to remain competitive with their offers and sellers will continue to have an edge.
Is Now A Good Time To Buy?
All things considered, we think that 2023 is going to be a great time to enter the housing market for both buyers and sellers. With lower interest rates, declining sale prices, and limited inventory the market will continue to remain competitive for sellers, but buyers won’t be priced out of their dream neighborhoods by external factors – although they may have to exercise a bit of patience to find the “perfect” home.
If you’re ready to explore buying or selling a home in the Greenville, SC, area – give the team at Wilson Associates a call.
