With businesses slowly re-opening around the country, many real estate experts and consumers are trying to gauge the relative health of many real estate markets. The coronavirus pandemic caused many to take a cautious stance on whether to buy or sell a home, and that’s the same for the hot South Carolina real estate market.
South Carolina has enjoyed consistent growth in both home sales and pricing appreciation since 2012. The combination of a mild climate, access to beaches, ports, a highly-skilled workforce, and a friendly business environment make it favorable for families, young professionals, and retirees alike. Even with COVID-19 pandemic clouds still looming, here are four positive real estate trends you can still expect for South Carolina in 2020.
Trend #1: Strong Housing Demand Will Continue
South Carolina has been popular for families for quite some time, according to J.Scott, principal investor with South Carolina Real Estate Buyers. About 90 families move to the state each day, Scott said. The economy has grown because of a variety of companies, including technology, manufacturing, and automotive enterprises, coming to and expanding in Charleston and in other large cities. Even with the pandemic bringing uncertainty, homeowners who decided to sell found strong demand still in place.
“If you put a home on the market now, there are definitely buyers, and there’s less competition for sellers to deal with, too,” Scott said.
Trend #2: Nexton Is Next up Near Charleston
Summerville, north of Charleston, has had a long run as one of the more popular suburban communities, Scott added. Mt. Pleasant, for its proximity to water and its upscale luxury environment, is also a hotbed for real estate activity.
But for those looking for that perfect mix of posh and new amenities and affordability, Nexton is the next stop. The rapidly growing community northwest of Charleston has been a growth hotbed that’s not stopping any time soon.
“I would say Nexton is that hot new trend; a lot of people want to live there,” Scott noted.
Trend #3: South Carolina Will Mirror Other Growth Markets
As is the case nationally, home listings in South Carolina plummeted during the coronavirus pandemic as many buyers and sellers hit the pause button to wait and see how re-opening of the economy and recovery progressed.
While near-term sales and pricing numbers may see some downward pressure, pent-up demand for housing should ultimately win. Scott says, by the fourth quarter, expect sales volume increases to regain their previous momentum.
Trend #4: Expect Housing Appreciation to Continue
According to a late May report from the Federal Reserve Bank of Richmond, home pricing appreciation through February of this year still saw a 4% increase year-over-year. South Carolina has enjoyed between 4% and 5% annual median price appreciation since 2014, according to the Federal Reserve report.
Closings topped 91,000 in 2019, a 4% increase over 2018. While that figure will likely drop in 2020, demand should remain strong for homes.
People are saving more than ever and have shown a penchant for wanting to spend their disposable income, too, Scott said. And while there is continued stock market volatility, the “safety of real estate” will likely become only more appealing, he added.
With uncertainty still a part of everyday life in 2020, the South Carolina housing market hasn’t shown signs of distress. With continued economic growth, commercial real estate should also stay strong, as more companies call the state home for offices, manufacturing, and other business activity.