by Frankie Griffin
8. January 2012 05:26
How wil property values in South Carolina react to the expected trends in 2012?
Over the last four or five years, SC property values have depreciated in some areas do in large to the large number of bank foreclosures flooding the market. It has not helped with the large number of property owners attempting to sell their property for a price higher than the current real estate market demands. When the property is not priced at market value, it will not sell resulting in the large number of homes saturating the market. This saturation, combined with the large number of foreclosures hitting the market has created one of the largest and longest Buyers market we have experienced in decades.
In the course of a normal real estate year in South Carolina. You tend to see a buyers market beginning around the end of Fall and through the Winter months. As spring rolls around, the market will tend to start trending back to a sellers market which last through the Summer months. The largest number of buyers on the market will normally exists in the Spring and Summer months primarily because buyers with children do not want to buy and move during the school year. Most will wait until school is out for the Summer or maybe a month or two prior to the school year ending so they do not have to change schools in the middle of the year. When we have large numbers of buyers shopping at one time, we have Sellers market. The seller can make higher demands due to the competition between the buyers. When the school year starts again, buyers with children will likely have already purchased their new home so fewer buyers are available during this time resulting in a buyers market. We have many more homes for sale than we have buyers willing to buy thus allowing the buyer to make larger demands.
Unfortunately for home sellers, over the last few years, the real estate market has been flooded with so many homes for sale by property owners and with the bank foreclosures. The result has been many more homes for sell than buyers willing to buy year round. When a buyers market exists for extended periods of time, you see property values start going down, and in some markets, it may be a drastic reduction in value.
Many experts believe the market is now beginning to balance out again with the large number of foreclosures that have been absorbed by the market. Additionally, large numbers of potential buyers have been waiting to see what the economy is going to do. They do not want to buy a house with the fear of losing their jobs and having the home foreclosed. We now see very positive signs that the economy is getting stronger and growing with unemployments rates beginning to drop. It appears the property values have also leveled off from the years of decline and interest rates are at record lows. Our financial expert, Erica West with New American Mortgage, states that 30 year loans are at 3.9% and Erica West can have you a loan and ready to close within 7 days of putting a house under contract! If you are considering getting a loan for refinance or to buy a home, you owe it to yourself to call Erica West for a quote.
All things considered, 2012 promises to be the year for a real estate rebound. Buyers will start seeing interest rate going back up and will not want to miss the opportunity to buy before the property values go up as well. If you have ever thought about getting your SC Real Estate License, now is the time. We will see many more buyers this Spring than we have seen in the last few years. Now is the time to get your license and feet wet as the market begins to warm up. Andy Aun, with Aun and McKay Law Firm, is offering FIVE (5) Scholorships for the Real Estate School for Success. You now have a chance to take the class to get your license at no charge to you!! Tune into the Success in Real Estate Radio Show this Saturday morning to learn how you can receive one of these Scholorships. You can also receive a 15% discount for any class you sign up for on line by entering the PROMO CODE below.
DISCOUNT PROMO CODE: Value
Click here to listen to Saturdays Success In Real Estate Show on Property Values
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