The curtain has closed on 2010 and I wanted to spend a little time reviewing the year and my outlook for 2011. If you have read my previous blog posts, you will know that while we have certainly seen a downturn in activity and housing values in the Greenville SC real estate market, we have faired much better than other major markets around the country.
Below is a recap of activity based on information from the Multiple Listing Service of Greenville, South Carolina, Inc. for single family residential home sales for December 2010 and some year to date comparisons.
- As of January 6, 2011 there are 5,573 active listings. 762 of these are new/never lived in homes.
- During the month of December there were 420 homes sold. These homes sold for an average price of $166,505 and sold for an average of 6.5% off list price. These homes sold in average of 122 days on market.
- There were a total of 6,026 single family homes sold during 2010. This represents a decrease of 4% compared to 2009.
Are we at or near the bottom? What does the market look like now? We all have a lot of questions about the economy and as Realtors we constantly are trying to prognosticate about the direction of the housing market. You can probably get a different opinion from each person you ask.
My thoughts, specific to the Greenville market...We currently have a little less than a 12 month inventory which is slightly higher than ideal but not terribly inflated. There will be more people listing their homes headed into the Spring and I expect that inventory could float back towards 6,000 homes by March. Interest rates have inched up but are still currently below 5% are remain attractive. I do not anticipate that their will be any Federal home buying incentives in 2011 so the housing market will have to stand on its own without the training wheels. My crystal ball shows that 2011 will be slightly better in units sold; somewhere in the 5 to 8% range. I think we will get some traction in pricing so that values are stabilized and by 2012 we will start to see our more typical 3% annual appreciation which has been historical for the Greenville area.
What are your thoughts on the 2011 housing market? Leave a comment below and let me know.