Today, Greenville County’s population is 514,000. By 2040, the county is projected to add an additional 222,000 residents and 86,000 new jobs. The only way to add more inventory is to build it.
If the first part of 2024 is any indication of how the rest of the year will follow, prepare for increased competition. Historically, May and June are the months that this area experiences the highest volume of transactions. If rates continue to decrease, many buyers are expected to start shopping for homes again. This increased demand will fuel multiple offer situations, at all price points. Currently, there are new construction communities all over the Upstate offering thousands of dollars worth of incentives to eager buyers. My advice to buyers in 2024 is to beat the crowd.
The data is out. Nationally, the housing market endured strong headwinds when mortgage interest rates climbed over 7% for the second time in two years and later peaked at over 8% in the fall of 2023.
The median price of a home sold in Greater Greenville in 2023 was $315,000 up 15.3% from 2022. The average price was $377,986, also up 19.2% from 2022. Source: Greater Greenville Association of Realtors
In the Greater Greenville area, the housing market remains resilient. The Home Builders Association of Greater Greenville is predicting that home values will continue to appreciate in 2024 by an estimated 5.3%.
There are more buyers than sellers. Limited inventory and affordability sent droves of prospective buyers to the sidelines when mortgage rates surpassed 8% in the fall of 2023.
In an interview with 60 Minutes, Federal Reserve Chairman Jerome Powell explained that there is growing confidence in the economy and the labor market. However, he does not believe the committee will have enough confidence to cut interest rates before May.
Home values have soared in recent years. Home prices since the Pandemic were fueled by lower mortgage interest rates ranging from 2 - 4%. Many local families, who were not in the market to buy or sell, also took advantage of those low interest rates and refinanced. Now, these homeowners are not motivated to sell because they don’t want to lose that attractive interest rate. This phenomenon continues to keep us in gridlock.
