Are you considering a real estate investment in Greenville, South Carolina? Perhaps you're already a homeowner and would like to sell your property. Whatever the case, it's important to understand the housing market before deciding to invest.
In this article, we'll take a closer look at the Greenville real estate market to help you decide whether it's the right time to buy or sell a property.
Understanding the Housing Market in Greenville, South Carolina
With a modest population of 70,000 and a 10 percent increase in the local economy over the last five years, Greenville is growing in popularity. It boasts affordable housing, with prices 9 percent below the national average and 4 percent below the state average.
Greenville offers stunning natural beauty and a number of attractions. It has a laid-back and friendly vibe with a vibrant cultural and arts scene. Downtown Greenville has undergone significant improvements, hosting events throughout the year.
The local property market benefits from affordability. Despite recent declines in affordability, it remains historically favorable. Nevertheless, homeowners in Greenville are accustomed to devoting roughly 10.4 percent of their monthly income to mortgage payments, which is lower than the national average of roughly 16 percent.
Greenville's affordability has proven to be a positive factor for millenials. The truth is that it is more difficult for younger Americans to purchase a home as prices have returned to pre-recession levels in the majority of large metro areas. First-time homebuyers can find the perfect opportunity to get their foot in the door in Greenville, SC.
Greenville Real Estate Market Trends
Let's look at a few trends to understand how the Greenville housing market has performed.
- Home sales. Properties in Greenville sell in 48 days on average and receive three offers. 109 houses were sold, as opposed to 158 for the same period the previous year. Home sales in the country held steady last month, after dropping in March 2023, according to the National Association of Realtors.
- Median sales price. According to Redfin, the average selling price of a home in the city is $405,000, which is an increase of 4.1 percent year-over-year. This is 1 percent lower than the national average.
- Sales price per square foot. The average sales price per square foot is $223, which indicates an increase of 4.4 percent from the same period last year.
- Cost of living. Greenville residents enjoy a relatively low cost of living, which is 9 percent lower than the national average.
- Sales price vs. list price. The average property in Greenville sells for 2 percent below the listing price, with a sale-to-list price of 97.7 percent.
- Hot homes. Sought-after properties in the city are sold for around their list price.
Our statistics have been taken from Redfin, unless otherwise stated.
The Factors That Influence the Market
There are a number of factors that play a role in determining the health of the housing market in Greenville, SC.
Demand and Supply
Greenville's real estate market is influenced by demand and supply. When the demand for housing is low and there is a high inventory, properties tend to sell at a lower price.
However, a high demand and low supply pushes home prices up. Currently, the Greenville realptive growth will likely result in an increase in the population and could lead to new home construction projects and an increased demand for housing.
Mortgage Interest Rates
If you intend to purchase real estate in Greenville with the help of a mortgage lender, you will need to take note of the mortgage interest rates.
Interest rates influence the demand for housing, which in turn, drives home prices. Currently, the interest rates for a 30-year fixed mortgage in Greenville is 7.23 percent, while you can expect to pay 6.37 percent for a 20-year loan.
Greenville has a thriving rental market, with the demand for rental properties exceeding the current supply. This means that landlords will likely be able to secure a good rental income from real estate in the city.
The rental market and real estate market are closely related and thanks to a good demand for rental units, Greenville can maintain affordable real estate prices.
Greenville, SC, currently has a balanced market, making it a favorable environment for both buyers and sellers, but how will the market perform in the coming months and years? It's important to look at the market forecast before making the decision to buy or sell real estate, so you can assess when the best time to do so would be.
Although we can use historical data to help us learn about market trends, it is impossible to tell exactly what the future holds for the Greenville, SC, real estate market. Nevertheless, it still helps to look at expert predictions.
Greenville may be a wise choice for real estate investment if you're looking for houses that will sell for a decent profit when you flip them. On the 27th of May, 2023, the median cost of a typical home in Greenville was $240,000.
According to Wallet Investor projections, long-term growth is anticipated. By the end of May 2028, the average home's projected price in the city is estimated to be just over $300,000.
Job Market Growth
As we have already learned, the job market plays a vital role in determining the health of an economy. Although Greenville has seen positive growth of 0.7 percent over the past year, experts believe that the market will see growth of almost 40 percent over the coming decade. This offers the promise of increased home value for Greenville investors.
Should You Invest in Greenville Real Estate?
Greenville has shown positive signs of growth and will likely continue this pattern. With a low cost of living and good overall quality of life, investors can expect the area to continue to attract individuals and families.
Moreover, with a thriving rental market, investors can make a steady income. However, it's important to do your research before purchasing any property. If possible, seek expert guidance to ensure that you receive the maximum return on your investment.
The Bottom Line
Buying or selling a property is an important decision that should not be taken lightly. With this information, you can ensure that you are makong an informed decision.
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Frequently Asked Questions
In the section below, we answer some of the most-asked questions about the Greenville, SC, real estate market.
1. What is the median sales price of a home in Greenville, SC?
According to Redfin, properties in Greenville sell for an average price of $405,000.
2. Is Greenville, South Carolina, a buyer's or seller's market?
Greenville's housing market is currently balanced, which indicates that it is neither a buyer's, nor seller's market.
3. Do homes in Greenville, SC, sell at the list price?
Properties in Greenville sell for around the asking price, with the average home selling for 2 percent below and in-demand houses being sold at the list price.