As a follow-up to CB Caine’s first real estate Q+A, we recently asked for more of your questions about the Upstate real estate market as we continue to see the effects of the COVID-19 crisis in our community.
Now, CB Caine has answers. 🏡
Q: What do you recommend for those looking to buy a new house in the area soon? Is the market about to drop or should we jump in now?
A: On the surface, it would seem like the pandemic and recession would create a great opportunity for buyers looking for a good deal on real estate. Our region’s low inventory of available houses, however, has kept pricing in check. In fact, average sales prices in the Upstate have increased since this same time last year (Greenville by 5.6%, Spartanburg by 8.6% and Western Upstate 9%). That means it’s still very much a seller’s market from a sales price perspective. The real opportunity for buyers to save right now is through historically low interest rates, which the Federal Reserve has said homeowners can expect to have access to well into 2022.
Q: What will the housing market be like this summer?
A: There’s quite a bit of pent up demand from the last few months and that demand will likely fuel a lot of activity this summer. Experts like John Hunt, economist and principal at real estate analytics firm MarketNSight, point to ongoing inventory shortages as the primary factor favoring sellers. Simultaneously, incredibly low interest rates will entice more buyers into the market, creating the potential for a win-win scenario of strong home prices and very favorable mortgage rates.