The Truth about Greenville SC Real Estate

Over the course of the past few months, and longer in many cases, we have heard about the dismal state of the real estate market.  This includes declining prices in many markets, increased inventory, and increased foreclosure rates.

Greenville, South Carolina has managed to escape many of the declining trends seen in other markets, as our prices continue to rise, and the rate of foreclosure continues to be one of the lowest in the United States.

In a report released by the National Association of Realtors on August 14th, 2008, the US median price of existing single-family home fell 7.6% from $223,500 to $206,500 in 2nd quarter.  This is in sharp contrast to Greenville, SC, where the median price of an existing single-family home rose 5.1% in 2nd quarter according to the same report.  Greenville, SC had the 9th highest appreciation rate of the 157 metropolitan areas included in the report.

Much of the logic surrounding Greenville’s market success is the fact that home prices in Greater Greenville never experienced the “bubble” seen throughout much of the country.  Home values in Greenville, SC have always remained stable, and the economy in general is in a growth period with businesses expanding or relocating to the area on a regular basis.

Another worthwhile comparison is the existing inventory or supply.  This is also sometimes referred to as the absorption rate.  An article from the National Association of Realtors showed the overall supply of homes in the US at 11.1 months, up from 10.8 months the quarter before.  This shows the US as being strongly on the side of a buyer’s market, which is typically described as anything above a 7 month supply.  According to data from the Greenville, SC MLS, as of August 8th, 2008 Greenville’s supply was approximately 6.44 months.

Foreclosure is yet another areas in the market, where the US has been hit hard.  This is primarily due to poor lending practices, but some consumers also made poor decisions with adjustable rate mortgages.  Every quarter, RealtyTrac publishes data regarding foreclosures for the top 100 metro areas based on population.  In July of 2008, RealtyTrac’s report showed that 1 of every 171 US households had a foreclosure filing.  Yet again, a sharp contrast to Greenville, South Carolina where 1 in 492 households had a foreclosure filing, the 88th ranked market in a report of the largest 100 metro areas.

As I hope this information shows, Greenville, SC real estate continues to thrive.  The interesting part about this information is the fact that buyers still seem hesitant to purchase.  I feel that the media has generalized the real estate market, and failed to report on local statistics, which has helped contribute to fewer buyers being in the market to purchase.  The number of homes sold is one area where numbers are declining in Greenville, SC.  Many of these potential buyers are in our local market, which defies logic, given upwards trends in price, and the potential for higher interest rates in the future. 

In terms of future projections, The PMI Group Inc. showed Greenville, SC as having a less than 2% risk of decline in average price over the next 2 years.  This was published in their Summer 2008 Risk Index.

Click here for more information about Greenville SC Real Estate.  My website includes over 5 years of Greenville SC Real Estate Statistics, the ability to search Greenville SC homes for sale, my featured listings, and information for those looking to buy or sell real estate in Greenville, South Carolina.