State Real Estate Market Outlook
Realty Market Outlook South Carolina State Profile - Spring 2006
Home price appreciation accelerated in 2005
According to the Office of Federal Housing Enterprise Oversight, the house price index for the state rose 9.2 percent in 2005. Median home prices rose by nearly $11,000 last year, which was a record increase and well above the $4,388 average over the last 25 years. Myrtle Beach was the fastest appreciating metro market with a price gain of about $15,300.
Although home price appreciation accelerated in 2005, housing remains comparatively affordable. According to the National Association of Homebuilders-Wells Fargo Housing opportunity index, just 41 percent of homes nationwide are considered affordable for all U.S. households, nearly 51 percent of homes sold in Charleston, for example, would be considered affordable for a family earning the median income in the metropolitan area.
Home sale activity is balanced in the State’s hottest market.
Sales activity in Charleston rebounded late in 2005 after decelerating during much of the fall season. The improvement in sales during December differs with most other markets in the Southeast where sales have been decelerating from a year ago. The total number of homes newly listed for sale in December 2005 was 36 percent higher than a year ago representing a 1.2-month supply of newly listed homes, which is down from a 1.5-month supply a year earlier. Still, inventory levels continue to build in Charleston which bears monitoring for signs of potential slowing in the market.
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