2022 Market Review

2022 Market Review for South Carolina Real Estate

2022 Market Review

Here’s the 2022 Market Review.

People would consider last year to be a rollercoaster year. Mortgage rates were near historic lows, buyer competition was fierce, and homes were selling at a breakneck pace, often with multiple binds and all-cash offers, due to pent-up demand and a shortage of housing supply, causing sales prices to soar to new heights.

But all that changed shortly after when the increase in mortgage rates began and hundreds of dollars added to people’s existing monthly mortgage payments, causing the housing affordability to plummet to its lowest level in decades. 

Year-to-Year Comparison Report comparing 2021 to 2022.

The quantity sold increased by 2% going from 33,753 to almost 34,337.

The volume sold increased by 14% going from $10,114,053,877 to $11,568,805,796.

The average sale price increased by 11.9% going from $318,548 to $356,525.

The median sale price increased by 14% going from $265,000 to $302,187.

The Price Comparison Report

While the Year-to-Year report does a good job explaining the numbers how much they changed percentage wise, our second source is the Price Comparison Report. This report gives you a more specific look at the overall numbers for each year.

The Price Comparison Report for the years 2021 and 2022 in Greenville looking only at Sold Residential properties, we saw a decrease in home price and a decrease in days on market (DOM). As you can see from this chart, Days on Market declined in 2022 from the 2021 average.

Price Range

Sold 2021

Sold 2022

Average DOM 2021

Average DOM 2022

$0-$49,000

1,016

718

185

137

$50,000-$99,000

948

767

109

66

$100,000-$149,999

1,471

1,010

58

51

$150,000- $199,999

3,189

2,014

35

32

$200,000-$249,999

4,209

2,797

29

28

$250,000-$299,999

3,620

3,636

33

28

$300,000-$399,999

4,094

4,827

33

28

$400,000-$499,999

1,739

2,291

38

33

$500,000+

2,132

2,652

62

40

The Average Sale Price Sold average for 2022 was $356,525 which is significantly more than the 2021 Average Sales Price Sold average of $318,548. While the number of listings from 2021 to 2022 increased from 20,204 to 20,594.

The Cumulative Historical Statistics

The Cumulative Historical Statistics created by the Greater Greenville Association of Realtors® is the final source for our 2022 Market Review. According to these statistics, the Upstate has had a steady increase in units, volume, average price, and median price for the past five years.

These numbers are a representation of market activity but may not include all sales brokered by Member firms and should not be viewed as an all-inclusive of sales transacted within the referenced time periods.

Here are the 2022 numbers compared to last year (2021).

Year

Units

Average Price

Median Price

Average DOM

2022

16,647

$356,525

$302,187

27

2021

17,690

$318,516

$265,000

29

 Here are the 2022 numbers compared to the 2016 numbers.

Year

Units

Average Price

Median Price

Average DOM

2021

17,690

$318,516

$265,000

32

2016

12,198

$212,306

$183,000

62

So, what does this mean for 2023?

Takeaway from SCR Annual Report on the South Carolina Housing Market:

Looking ahead to 2023, much depends on inflation, mortgage interest rates, and the broader state of the economy, although economists predict many of 2022’s housing trends will continue into the new year: home sales will soften, price growth will moderate, inventory will remain tight, and there will be greater variability between markets nationally, with some regions possibly seeing price declines while other, more affordable areas of the country remain in high demand and experience price growth.

NAR Declares Greenville-Anderson-Mauldin, South Carolina Real Estate Market as ‘One to Watch in 2023’:

NAR selected the top 10 real estate markets to watch in 2023 based on how they compared to the national average on the following economic indicators: 1) better housing affordability; 2) greater numbers of renters who can afford to buy a median-priced home; 3) stronger job growth; 4) faster growth of information industry jobs; 5) higher shares of the information industry in the respective local GDPs; 6) migration gains; 7) shares of workers teleworking; 8) faster population growth; 9) faster growth of active housing inventory; and 10) smaller housing shortages.

Prime Realty’s 2022 Residential & Commercial Review

Prime Realty’s residential team ranked no. 65 nationally for total volume sold as a firm! Selling 171 units in 2022, they ranked no. 51 nationally. Prime Realty team is ready for 2023!

Prime Realty’s commercial team reached almost $22 million in volume sold in 2022, establishing their national ranking at no. 41.

Find Your Dream Home in South Carolina

We hope you found this 2022 Market in Review helpful and informative.

If you’re in the market for real estate in South Carolina, be sure to check out our inventory site for available properties. Our experienced team is dedicated to helping you find your dream home, so please don’t hesitate to contact us with any questions or to schedule a showing. And remember, if you’re ready to take the next step in finding your new home, give us a call or visit our website to schedule a consultation with one of our expert agents today!

Resources

NAR Forecast

South Carolina Realtors

For this blog, we used the Residential Sales data from the MLS (Multiple Listing Service) for the Greater Greenville Association of REALTORS® (GGAR) to show you how the market in Greenville has changed over time. For more generic 2023 detailed forecast reports, visit Realtor and Zillow.

Prepare for Your Mortgage Loan Application

Mortgage Loan Application

Applying for a mortgage is something that most people never learn to do until the time comes. And when that time comes, many can feel like they’re already 10 steps behind. If you’re in the process of buying a house, that most likely means you have your finances in order and a budget set in place. So, what’s next? When you’re shopping for a lender, consider different options like your bank, local credit union, or online lenders. Mortgage brokers offer a considerably wider array of options and can streamline the mortgage process for you. 

Let’s Begin

Once the seller accepts your offer, you’ll need to apply for a loan. According to Bank of America, “All lenders require you to provide information about yourself and anyone else who will be listed as a co-borrower on the mortgage.Keep in mind that each lender has their own criteria, so the results of your application can vary. On average, it can take anywhere from 30 days to several months for your application to be approved. The exact forms for different applicants vary but a lender can gauge whether you’ll be approved by checking out your recent pay stubs, bank statements, W-2 Forms, and tax returns.

Your financial situation affects the documents you are required to submit, but here are seven commonly requested documents: 

1. Tax Returns

Your tax returns allow lenders to gauge your financial health. For the lender to be able to request a copy of your tax return to the IRS, you must provide the lender with a signed Form 4506-T. They want to see one to two years’ worth of tax returns. 

2. Pay stubs, W-2s or other proof of income

Pay stubs allow lenders to gauge your current earnings. For those of you that are self-employed, you might be asked to show proof through 1099 forms, direct deposit or other methods. 

3. Bank statements and other assets

Lenders request these documents to verify your financial standing. Since lenders are assessing your risk profile, they’ll look at your bank statements and other assets. Any traces of savings or emergency savings plans will be taken into consideration when reviewing your application. Lenders want to know how prepared you are for an emergency. Having 3-6 months of savings equivalent to your living expenses will indicate that you are responsible and prepared for an emergency. They’ll also reference your investments assets like your life insurance. They will also analyze the amount of time the direct deposit’s total has been in your account and verify it didn’t appear overnight in your account. 

4. Credit History

With your verbal or written consent, lenders will pull your credit report. Industry members advise you to be prepared to write a statement that explains negative items in your credit report. For example, if you underwent a short sale or foreclosure, you would include stating so. Not disclosing blemishes will delay the application process and could even prevent mortgage approval.  

5. Gift Letters

If you are in the position that your friends and family can give money towards your new home, then you’ll have to provide written information that the money is in fact a gift and not a loan.  

6. Photo I.D.

Solely to verify you are who you claim to be.  

7. Renting History

A person’s rental history is vital for applicants who don’t have an extensive credit history. Lenders will request proof that you were an ideal tenant who paid on time. Lenders could ask your landlord to provide documentation backing up your claim or ask for a year’s worth of canceled rent checks (checks that were cashed by the landlord). 

Locking in your interest rate

According to Bank of America, “A rate lock, also known as a rate commitment, is your lender’s assurance that the interest rate and discount points are guaranteed until the rate lock expiration date.” Talk to your lender about ways you can protect yourself against rising interest rates. If you’re worried about the rising rates, you can lock your rate with your lender when you fill out the application. You are not obligated to do this if you believe the rates will decrease prior to signing off on your new house, but the rate must be finalized and locked in prior to the lender preparing your closing documents.

At the time of signing, you need to already have your budget set for the down payment. According to Patch.com, “the long-accepted ‘standard’ down payment for buying a home is 20% of the total sales price.” Make sure to also budget for the anticipated appraisals, inspections, and the home’s closing costs.

Prospective Buyers

What is a prospective buyer? A prospective buyer is:

  1. a person who has submitted an offer to the seller, but the seller has yet to accept the offer. 
  2. a person who is in preparation to buy their first home. 
  3. a person who expresses interest towards a specific property but has yet to make an offer. 
  4. a person who has begun their home search but has yet to select a specific property. 
  5. a person whose offer has been accepted by the sellers, the negotiation process may or may not already be underway, and the closing documents are what’s left to sign.

From a legal standpoint, the term prospective buyer is most commonly reserved for once the potential buyer’s offer has been accepted by the seller. It can be essential to know whether you qualify as a prospective buyer for legislative reasons. South Carolina is included in the sum of states that acknowledges and accepts the term: prospective buyers. 

Why is it important?  

Because the prospective buyer is entitled to certain rights during the sales process. In some areas across the nation, the potential buyer isn’t classified as a prospective buyer until an offer is submitted, as a legal standpoint. In other areas, the status isn’t disclosed to the buyer until the seller has accepted their offer.

Why have I been refused a mortgage?  

According to Experian, if you are refused a mortgage, here are a few common reasons why: 

  • The lender has calculated you won’t be able to make the repayments. 
  • You’ve made too many credit applications in a short space of time in the past six months, resulting in multiple hard searches being recorded in your report. 
  • You’re not registered to vote on the electoral roll (this is used for proof of your address and identity). 
  • There are mistakes such as incorrect addresses or other errors on your application form. 
  • You may not fall into the target bracket for the type of mortgage you’ve applied for. (Experian, 2022)

Community Assistance Programs

1.) SC Housing 

2.) Community Works Downpayment Assistance 

3.) GCRA 

“Established in 1974, the Greenville County Redevelopment Authority (GCRA) works to improve the living conditions of the county’s residents by building new homes, rehabilitating existing homes and improving the infrastructures within communities.”

Did you know you could be eligible for down payment assistance? 

Qualifications: Eligible Buyer

  • Must be a first-time home buyer 
  • Stable income 
  • Secure a 30-year, fixed rate 1st mortgage 
  • Complete the application process
  • Invest a minimum of $500 into the home purchase
  • Attend a community works orientation
  • Attend a homebuyer education workshop through GVL County Human Relations Key Program 

Qualifications: Eligible Properties 

  • New and existing properties in GVL County 
  • Max purchase price for new construction is $240,000 
  • Max purchase price for an existing home is $195,000 
  • The home must be the buyer’s principal residence 
  • Monthly mortgage payment must be affordable (33% of monthly income) 

Eligible Uses 

  • Funds may be used for down payment and for closing costs.
  • The total of bank mortgage on the property may not exceed 100% of the appraised value. (This does not include funds from Community Works.)
  • Buyers may not receive any funds back at the time of closing. 

Thank you for reading our blog! If you have any questions or are looking for a recommendation, please email us at info@primerealtysc.com. 

 

References

Credit Karma

Experian

Bank of America

GCRA

SC Housing

Community Works