Columbia’s Real Estate Market Tightens Under Low Inventory

January started off strong for the housing market in the Midlands of South Carolina, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.

New listings were down 9.9 percent to 1,290. Pending sales, meaning homes under contract that have not yet closed, increased 19.6 percent 1,333. Overall inventory of homes for sale shrank 49.5 percent to 1,371 properties.

 

Prices moved higher as the median sales price was up 22 percent to $209,900. Days on Market, a key metric, decreased 39.7 percent to just 38 days. Months Supply of Inventory was down 56.5 percent to one month, indicating that demand increased relative to supply.

 

The Mortgage Bankers Association's January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales (where the lender accepts less than what’s owed) and foreclosures at some point in 2021 would not be surprising. 

 

Source: Consolidated Multiple Listing Service