A Look Back at the 2018 Market Statistics From the Greater Columbia Area

Based on 2018’s market statistics, there are a few important trends that were predicted to take place in 2019.

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It’s time to take a look back at South Carolina’s market stats from 2018 to get an
idea of what trends might take shape moving forward in 2019.

Last year, home prices were consistently up again in most markets. While most of the US saw a
reduction in price increases, South Carolina’s price increases were in line with the last several years.
High demand for new homes for sale fueled these price increases. A fourth interest rate hike
by the Federal Reserve spooked the stock market to close out the year, and the Fed indicated that
the number of rate increases would be cut in half in 2019.

Here are some of 2018’s year-over-year statistics compared to 2017:

• The number of new listings rose 2.7% to 116,267
• The number of closed sales rose 3.8% to 87,256
• The median sale price rose 5.5% to $200,000
• The percentage of list price received at sale rose 0.3% to 97.4%

The increase in the number of new listings and closed sales indicates that buyers were plentiful
amidst higher prices, increased interest rates, and historically low inventory.

The overall level of inventory increased 2.2% to 28,721 units, while the month’s supply remained
relatively flat at four months. Inventory has been decreasing overall over the last eight years,
but a national shift is beginning to affect local supply as well.

Unemployment rates remained remarkably low, and wages continued to improve for many US
households. It’s generally good for all parties involved in real estate transactions when wages grow,
but the average increase didn’t keep pace with home price increases, which created an affordability
crux in the second half of 2018.

Based on these numbers, it was predicted that inventory would improve in 2019, and that would
apply some downward pressure on prices for beleaguered homebuyers. Though month-to-month
price increases were common in 2018, it was thought that that might change too this year.

With this in mind, housing affordability remains an important storyline as 2019 continues to take shape.
Right now, conditions are improving in South Carolina regarding prices and the number of sales,
but the market is flattening out across the rest of the US. Overall, it’s still a great time to buy or sell.

As always, if you have any questions about our market or you’re thinking of buying or selling a home,
don’t hesitate to reach out to me. I’d love to help you.

Everything You Need to Know About Homeowners Associations

Today we’ll be getting to the bottom of an important question: What are HOAs and how do they work?

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Whether you’ve lived within one or not, you’ve probably got some questions about what HOAs are and how they work.

In short, an HOA, or homeowners association, is an organization of homeowners that retains the right to create and enforce regulations, rules, and restrictions on a particular subdivision, condo unit, or planned unit development.

These rules will vary between each HOA and may stipulate anything from the required size of homes to where you can park your vehicle.

That said, there is a good reason for these rules. HOAs help the properties within them maintain a certain level of care. This, in turn, helps to protect the homes’ market values.

You should be well aware of what you’re signing up for before you purchase any given property.

Of course, an HOA can’t operate without funding. This is where the matter of HOA dues come in. Those living within an HOA are required to pay a certain monthly fee that will ultimately be applied toward the care and keeping of the neighborhood.

If you neglect to pay this fee, however, the HOA is within their legal right to take action. They may even foreclose on your property.

The bottom line is that you should be well aware of what you’re signing up for before you purchase any given property. This includes checking to see if it’s within an HOA and, if it is, what rules you’ll be expected to follow and what fees you’ll be expected to pay.

In many cases, an HOA is well worth the cost. Even so, only you can determine what is best for you and your family—with the help of a trusted Realtor, of course.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Answers to 4 Common Real Estate Questions

If you are a seller in our market, I will be answering a few common questions about our market and the home selling process that you may be wondering yourself.

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Here are my answers to four common questions I have been getting lately from potential sellers in our market:

1. With the market like it is, should I sell now or wait until next year?

Homes in our Columbia market have been appreciating at a rate of 6% per year. Let’s say you are thinking of selling a house worth $200,000 and buying a house that costs $300,000. Which would you rather have appreciate at 6% per year—a $200,000 investment or a $300,000 investment? If you wait until next year to sell, you’ll be able to sell your $200,000 house for $212,000, but you’ll also pay $318,000 for that same house that originally cost $300,000.  

2. Should I get a home inspection if I am selling?

If you are selling a newer home, my answer is usually no, but that can depend on your situation. If your home was built in the last couple years, than you probably do not need an inspection. If it is 15, 20, or 25 years old and you have not done any maintenance on it in a long time, then you probably should get an inspection. If you are selling an older home, my answer is definitely yes. 

The bottom line is you do not want any issues to arise that may scare a buyer away once they are under contract, even if it is an issue you can fix. During the first 10 days of the due diligence period, the state contract that we use in the Columbia area allows buyers to walk away from the transaction for any reason. 

You do not want any issues to arise that may scare a buyer away once they are under contract.

3. What repairs can I make to my house to make it more sellable? I usually do not recommend making any wholesale remodels, but you should definitely repair any issues the average buyer can spot from a mile away, like chipped paint or rotting wood on the exterior of the home. 4. Should I hire a professional stager before listing my home? Usually, my answer in this case is no—buyers typically have enough imagination to look past this kind of thing. You do, however, want to hire an agent who has a good eye for staging. When I look at a client’s house for the first time, for example, I will walk through it with them and give them advice on how to declutter it and make it more presentable. If you have any more real estate questions for me, please feel free to call me, email me, or message my team’s Facebook page. I look forward to hearing from you!

How Is Supply and Demand Impacting Our Luxury Market?

What’s going on in our local real estate market? It’s time to take a look at recent conditions and how they may impact your real estate goals.

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Today I’d like to take a moment to update you on the latest developments in our market.

Currently, our market remains red-hot. In fact, Zillow estimates that homes sold more quickly in 2017 than ever before. And homes this year seem to be selling even faster.

The briskest business in the Columbia area is in the $150,000 to $220,000 price range. If your home falls within this category, this is good news. There is far more demand than there is available supply in this price range, so now may be the perfect time for you to trade up to a larger or more expensive home. 

Now may be the perfect time for you to trade up to a larger or more expensive home.

However, not all segments of our market are seeing this same level of activity. The luxury market has at least a year's supply of inventory currently. Still, this doesn’t mean luxury homes don’t sell. In fact, last weekend, our team put two homes in the $500,000 to $750,000 range under contract in just one day. Some speculate that the tax bill may be fueling the uncertainty circulating around the luxury market, but I personally think current conditions are driven more so by an imbalance of supply and demand. If you have any other questions, would like more information, or are curious how current market statistics may impact your real estate goals, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Tips for a Picture-Perfect Home

Before professional photos are taken of your home, follow these eight tips to achieve a picture-perfect property.

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Before listing your home, it’s important to make sure that it’s photo-ready. My team and I are Realtors and marketing experts, not photographers. We believe that spending the extra money on professional photography is well worth it.

Buyers definitely pay attention to the little things when looking at home photos online.

That said, allow me to list a few things you should do to prepare your home before it’s photographed. 

1. Declutter. When buyers see photos of your home online, they’ll want to see that it’s neat and tidy. 

2. Remove large or unnecessary furniture. Rooms look a lot smaller when they’re packed with bulky furniture. Removing certain pieces can make your property appear much more spacious.

3. Check your lightbulbs. Your home will look somewhat strange in photographs if a bulb is missing, burnt out, or a different wattage than the others. Buyers definitely pay attention to the little things when looking at home photos online.

4. Turn off your television. Make sure any screens or monitors are powered off before photos are taken of your home.

5. Put away small appliances. These can make your home appear more cluttered if they’re left sitting out.

6. Remove fridge magnets. This will help to depersonalize and declutter your kitchen.

7. Make the beds. It may sound obvious, but a tidy bedroom will help give the home look cleaner overall.

8. Hide toiletries in the bathroom. Put away toothpaste, skincare products, and anything else that may be cluttering up your sink or countertops.

If you have any other questions, would like more information, or would like a complete list of ways to prepare your home, feel free to give me a call or send me an email. I look forward to hearing from you soon.