If you've been looking for a home, or know someone who has, then you know that buying a home in Columbia, South Carolina is tough. In fact, it is difficult across the U.S. Many have asked me, "What is going on, and what can I do?"
There are multiple market forces at play, driving the frenzy.
- Many people have discovered that they can work from home, even after the Pandemic. These people are looking to move to a larger home with an office or extra bedroom. They no longer have to be close to their company, so they are now open to different areas.
- Others have enjoyed gardening or relaxing by the pool and have discovered that they are very happy relaxing at home rather than going out. They are looking to find a home that more closely fits their new needs.
- Mortgage rates are at or near historic lows
- Many people have been able to save for a large down payment, thanks to stimulus checks, forbearance of student loans, and less eating out or travel. Some young people moved in with their parents in order to save for that large down payment.
- First-time home buyers are entering the market for all the reasons stated above.
- Many aging baby boomers have stayed in the homes in which they raised their children rather than downsizing or moving to assisted living
- New home construction is down. It plummeted during the 2007 - 2010 recession. Builders face difficulty finding land and labor, and are now facing shortages of lumber (the price has doubled in the last 14 months), appliances, sheetrock, and other necessary supplies.
All of these factors have added to the housing shortage across the nation. In Columbia, we have 861 homes on the market. This includes all areas of the metropolitan area, all prices, and all types of homes. We normally have over 5,000 homes on the market at this time of year. There are 3,308 homes under contract waiting to close. That means that we need about 3,000 newly listed properties to satisfy the need.
What that means for you, as a consumer, is that if you're thinking of selling that rental property, this is the time. If you're thinking of moving to the beach, now is the time. If you've considered assisted living, now is the time. Interest rates are low, so buyers should buy. Prices are high, so sellers should sell.
Call us if we can help!
