Housing Market in Columbia SC

Real Estate Agent with Russell and Jeffcoat

Everyone, from the man on the street, friends, acquaintances, teammates, vendors and buyers and sellers of single family homes for sale in Columbia, SC  all want to know what is going on with the real estate market and what will happen, if anything, in 2012. Looking at the present, now is the best time to buy in Columbia SC . Interest rates are at all-time lows hovering around 4%. The supply of properties is in a normal market supply of 5-6 months of inventory. Prices are at 2003 levels or lower. Business Week says it's a no-brainer to buy now. Market Watch.com says it may be the best time in history to buy. US News and World Report says now is the time to buy. As does JP Morgan. Remember, the real estate market is a market that throughout its history is always in different phases of cycles. The smart investor/buyer always will look for the point of maximum opportunity to buy. Today is that point, because optimism will follow in the market from 2012-2015, just as we were in an "optimistic" phase in 2000-2005.


What happened in 2006 when the "euphoria" phase of the cycle hit? That year was the point of maximum RISK to invest. We in Columbia, SC know what has happened since we purchased in 2006. Look at prices now, some down 20-25% from the "euphoric" phase. The point is, those who buy now that plan to keep their home/investment for four years or so will see this great deal they're getting now move again into the "euphoric" phase eventually and reap the benefits of a huge return on investment when selling in 4-5 years. History proves this will be the case. The cycles are trustworthy in time. 2012, however, although there is a case that there is some "optimism" looking forward in the market, the mistakes that lenders made in the past will rear their ugly heads this coming year in the form of FORECLOSURES that will hit the market in 2012.


The second quarter of 2011 shows over 1,300,000 foreclosures (blame "robo-signing" and other methods banks used) will hit the market. Forecasters like Chase Bank feel that prices could fall by as much as 7% until rock bottom is hit at the end of 2012. So should buyers wait until next year to buy? What if mortgage rates rise .5% as they are forecast? Buyers should be concerned with COST of buying versus PRICE of home. A slightly lower price combined with a jump in mortgage rate generally is a wash, or worse, a greater mortgage payment per month. So now is definitely the time to buy property for sale in Columbia SC.


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