SC State Housing offers a variety of mortgage financing options through a variety of Lending Partners to make owning a home more affordable and recent changes will allow more buyers to qualify.
One of the most substantial changes allows the applicant / buyer to use only his/her income for qualification purposes. This change will allow more buyers to fall under the income limits to help them qualify for the program. Previously, the total household income had to be under the income limit to qualify.
The current bond issue offers a lower than market rate and $10.000 down payment assistance. The rules for “targeted” areas allow buyers to purchase their primary residence but they cannot own another property at the time of closing. However, buyers can sell their current home prior to purchasing the new home and still use the program as long as they meet all other guidelines.
For “non-targeted areas, purchasers may not have owned a home within 3 years of closing the new home
There are a variety of affordable SC Housing programs with different criteria and the much-anticipated Palmetto Heroes Program will be available this spring (date and details have not been announced yet). Palmetto Heroes serves military, police, fire and medical personal and typically has a generous down payment assistance amount and a lower-than-market rate.
If you or someone you know could benefit from a State Housing program, please contact me, I would be happy to help connect you with the needed resources.
According to a recent NerdWallet survey, 15% of Americans are planning to purchase a home this year. That’s actually a record high for this survey (see graph below):
The percentage has been hovering between 9-11% since 2020. This recent increase shows buyer demand hasn’t disappeared – if anything, it indicates there’s pent-up demand ready to come back to the market.
That doesn’t mean the floodgates are opening but does indicate that buyers are optimistic. Whether they’re feeling more confident about moving, or saved money, or simply can’t wait any longer – this seems to be the year they’re aiming to take the plunge.
And, according to that same NerdWallet survey, more than half (54%) of those potential buyers have already started looking at homes online.
That’s a good indicator that a number of these buyers will be looking during the peak homebuying season this spring.
South Carolina has officially become the number 1 moved to state in America, surpassing Texas. This significant change reflects a growing trend of people relocating to the number 1 moved to state, driven by various factors such as job opportunities, more affordable housing, and a desirable lifestyle. According to data from U-Haul, South Carolina has knocked Texas out of the number one spot for the first time in history.
The trend of southern states netting larger numbers of one-way U-Haul® continued during 2024, with South Carolina topping the U-Haul Growth Index for the first time.
Texas, North Carolina, Florida and Tennessee round out the five leading growth states.
California experienced the greatest net loss and ranks 50th for the fifth consecutive year.
Growth rankings are configured by each state’s net gain (or loss) of customers utilizing one-way U-Haul equipment in a calendar year. The U-Haul Growth Index is compiled from well over 2.5 million one-way U-Haul truck, trailer and U-Box® moving container transactions that occur annually.
“State-to-state transactions from the past year reaffirm customer tendencies that have been pronounced for some time,” stated John “J.T.” Taylor, U-Haul International president. “Migration to the Southeast and Southwest continues as families gauge their cost of living, job opportunities, quality of life and other factors that go into relocating to a new state. Out-migration remains prevalent for a number of markets across the Northeast, Midwest and West Coast — and particularly California.
“U-Haul continues to expand its network, rental fleet and self-storage footprint so that wherever people move in 2025, we will be there to meet their needs.”
South Carolina climbed three spots in the rankings to unseat Texas, which was the No. 1 growth state for the previous three years (2021-23). Of all the U-Haul movers coming and going from the Palmetto State in 2024, more than 51.7% were arrivals.
Texas has ranked first or second among U-Haul Growth States each year since 2016. Florida has been fourth or higher every year since 2015.
New York, at No. 47 on the list, has its lowest growth ranking in a decade.
Oklahoma (+30), Indiana (+19) and Maine (+18) are the biggest risers year-over-year on the U-Haul Growth Index. Colorado (-31), Nevada (-24), Wyoming (-22) and New Mexico (-21) saw the biggest slides in 2024.
An accessory dwelling unit (ADU), sometimes called a carriage house or in-law suite, is a separate, detached living space with a kitchen, bathroom and sleeping area on the same property as a single-family home.
As the cost of housing continues to rise, local leaders are looking to allow these accessory dwelling units in residential areas to provide more housing options.
Leaders in the local government of North Charleston recently proposed a new ordinance that would allow homeowners to rent the separate unit to a long-term tenant, which would provide additional income to the homeowner and increase housing stock.
North Charleston currently allows ADUs in a few overlay districts, such as the Olde North Charleston Historic District and Neighborhood Conservation District, which covers a strip of Park Circle between Spruill and Virginia avenues. The new ordinance is aimed at areas like Park Circle where larger lot sizes can accommodate additional density, as opposed to already dense areas like Liberty Hill, Chicora-Cherokee and Accabee.
According to the proposed ordinance, an ADU cannot be more than two-thirds the size of the principal dwelling unit or exceed 800 square feet. The lot size must be at least 4,500 square feet. An additional off-street parking spot for the ADU must be provided. All ADUs must be permitted by the city.
It’s intentional that these additional units are small, said Tim Macholl, the city’s director of planning and zoning, during a November committee meeting. He said the space is ideal for a college student who is spending the summer at home or in-laws staying in town. It also provides an opportunity for additional income for homeowners if they choose to rent it out, he added. However, these units are not eligible for short-term rental permits, so they can not be used for vacation rental services, like Airbnb.
The demand for ADU’s is on the rise. They offer some affordable housing solutions, an option for multi-generational living and versatility of home space as they can be used as home offices, living spaces or possibly rentals.
Goose Creek also has previsions in their ordinance for ADU’s and many other municipalities are incorporating guidelines as well to accommodate the ADU trend.
If you are considering an ADU, check with your local municipality and Homeowner Association to make sure they are allowed and to obtain the guidelines, rules and permitting requirements.
Year over Year Review (2023 vs. 2024): Closed sales up 13.7% Median Sales price up 2.3 %
December 2024 stats for the entire Charleston MLS:
NEW SALES – Pending – There were 1106 new written sales in December 2024, a. predictor of future closed sales, which was up 6.3% versus December of 2023. YTD was up 2.4%.
CLOSED SALES – There were 1382 closed sales in December of 2024, up 13.7% from December of 2023 and up a negligible 1.1% YTD, compared to 2024.
SALES PRICE – The Median sales price closed out at $414,296, up 2.30% over December of 2024 and The Year-to-date median sales price was up 4.1% over 2024. The average sales price for December 2024 was $612,457.
INVENTORY – Approximately 1165 new listings came online in December 2024, which is down -6.9% from December 2023 but up YTD 10.8% The market as a whole had approximately 2.6 months of inventory at December’s end with the average Days on Market at 50, up 25% from December of 2023 and up 14% year to date.
Finalized on January 7, a new rule from the Consumer Financial Protection Bureau (CFPB) prohibits credit reporting agencies from including medical debt information in the credit reports and scores they provide to lenders. It’s expected to impact nearly 15 million Americans who have previously been haunted by an estimated $49 billion in medical bills on their credit reports.
The new rule will go into effect 60 days after publication in the Federal Register. It typically takes about three business days for a new document to be added into the Federal Register, which effectively serves as official notice of the rule. So, don’t expect your credit score to improve overnight; it will be several weeks before affected consumers will see the changes.
The credit improvement could help many qualify to buy a home. However, two industry groups filed lawsuits seeking to block the rule
The National Association of Realtor’s economists recently weighed in on home sales, mortgage rates, the economy and changing buyer demographics and its effect on real estate for the year ahead.
Lawrence Yun, chief economist of the National Association of REALTORS®, along with NAR’s Deputy Chief Economist, Jessica Lautz, shared data and forecasts..
Their updated estimates show that the housing market is still dramatically undersupplied, and they estimate that U.S. housing stock is 3.7 million units below what is needed.
High mortgage rates and rising home prices have put a damper on affordability and are directly related to the supply shortage. Building more houses is essential but builders are also contending with high interest rates.
There is no silver bullet to alleviating this ongoing shortage but there are options being considered such as, accessory dwelling units (ADUs), Community Land Trusts, condominium conversions, and manufactured homes. They will continue to study this topic and work to uncover potential solutions.
Yun released a rosier forecast for the housing market for 2025 and 2026, with an outlook for higher home sales and moderating mortgage rates.
Here’s an overview of NAR’s predictions on key housing indicators for the year ahead.
Home Sales to Rise
With improving job numbers and recent gains in the stock market, more Americans may be motivated to act, Yun said.
Here’s Yun’s forecast over the next two years:
2025 sales projection: Existing home sales to rise 9% year-over-year; New home sales to jump by 11%.
2026 sales projection: Existing-home sales to rise 13% year-over-year; new home sales to increase by 8%.
Mortgage Rates to Moderate
The trajectory of mortgage rates will have a major bearing on how the housing market will fare, Yun said.
Mortgage rates may moderate but buyers may not see that anytime soon, Yun said. “Mortgage rates will not decline in tandem”… “With a large budget deficit, there’s less mortgage money available…. A large budget deficit will prevent mortgage rates from going down to 4%”
Nevertheless, the “locked-in” effect of homeowners feeling stuck-in-place with low 2% or 3% mortgage rates from recent years will lessen over time, as personal milestones (births, deaths, marriages, graduations, new jobs,etc.) trigger real estate moves.
Home Prices Increases Slowly After Rapid Rises
While homeowners have enjoyed record-breaking equity gains, home buyers’ have been struggling with affordability. A typical homeowner has accumulated $147,000 in housing wealth just over the last five years, according to NAR’s research. As a result, the spread in median net worth between homeowners and renters continues to grow. It stands at $415,000 for homeowners versus $10,000 for renters, Yun said.
“The strong price increases cannot be sustainable for another five years, or America will be divided … with only a few getting to experience the tremendous housing wealth,” Yun said. “If we bring more supply to the housing market, home price increases will not be as outrageous … and will be more in line with wages.”
Yun’s forecast:
2025 median home price: $410,700; up 2% over 2024.
2026 median home price: $420,000, up 2% over 2025.
A Different Type of Buyer Emerges
The profile of home buyers are changing, Lautz said, presenting data from NAR’s newly released 2024 Profile of Home Buyers and Sellers. Here’s a few of the changes observed in the report:
More buyers are skipping the mortgage. all-cash buyers have surged to record highs, accounting for 26% of home sales over the past year. Thirty-one percent of repeat buyers paid all-cash for their next home purchase.
First-time buyers are getting older. The median age of a first-time home buyer was 38, an all-time high. Twenty-five percent of first-time buyers used a gift or loan from a relative or friend for their home purchase; 20% took money out of financial assets like stocks, 401ks or cryptocurrency to afford homeownership; and 7% used inheritance money for their purchase—a record high, Lautz noted. First-time buyers are coming up with the highest down payments in nearly 30 years—at 9%—in order to afford the higher home prices.
The allure of cities grows. The pandemic may have unleashed a trend of suburban movers, but people are now heading back to city centers—the largest uptick in a decade, Lautz said.
More buyers are pooling their money. The number of multigenerational households surged to an all-time high of 17% over the past year. “The number one reason is for cost savings,” Lautz said. “They’re combining incomes” in order to afford homeownership. They’re also buying a multigenerational home to take care of aging parents or because of young adults are moving back home, Lautz noted.
Single women buyers continue to outpace single men buyers. A drop in marriage rates has triggered more consumers to enter the housing market on their own. Single women held a 24% share of the home-purchase market over the past year. For single men, it was 11%.
NEW SALES – Pending (Ratified contracts) – There were 1,266 new written sales in November 2024, a. predictor of future closed sales, which was up 12% versus November of 2023. YTD was up 3.6% at end of November. However, last week saw 167 properties go under contract market wide, down -15% to the same week last year.
CLOSED SALES – There were 1331 closed sales in November of 2024, up 3.9% from November of 2023 and up a negligible 0.1% YTD, compared to 2023.
SALES PRICE – The Median sales price closed out at $419,000, up 5.4% over November of 2023 and The Year-to-date median sales price was up 4.25% over 2023. The average sales price for Movember 2024 was $611,213. The Median sale price in the Charleston market continues to stay in a tight band between $400k and $425k where it has been for most of the last 30 months- 2 1/2 years!
AVERAGE SOLD PRICE PER SQFT
The average price per sqft still remains near an all-time high at approximately $286 /sqft
INVENTORY – Approximately 1581 new listings came online in November 2024, which is up 0.6% from November 2023 and up YTD 11.7%
We still need roughly 2,500 additional listings market wide to achieve a balanced market (5 months of inventory)
The market as a whole has approximately 2.6 months of inventory with the Days on Market at 29. See absorption rate by area below:
NEW CONSTRUCTION – New construction represents 49% of all pending contracts in the MLS and new construction comprises approximately 36% of the closings.
FORECLOSURES AND SHORT SALES – Represent a combined 0.7% of all available listings
If you have questions or have a real estate need, please don’t hesitate to contact me!
NEW SALES – Pending (Ratified contracts) – There were 1,393 new written sales in October 2024, a predictor of future closed sales, which was up 2% versus October of 2023. YTD was down -4%
However, Last week 242 properties went under contract market wide, which was up +16% compared to the same week last year.
CLOSED SALES – FLAT – There were 1,354 closed sales in October of 2024, down a negligible -0.7% from October 2023 and down -0.4% YTD, compared to 2023.
SALES PRICE – The Median sales price closed out at $415,685, up 3% over October of 2023 and The Year-to-date median sales price was up 4.25% over 2023. The average sales price for October 2024 was $644,758. The Median sale price in the Charleston market continues to stay in a tight band between $400k and $425k where it has been for most of the last 27+ months.
AVERAGE SOLD PRICE PER SQFT
The average price per sqft still remains near an all-time high at approximately $301 /sqft
INVENTORY – Approximately 1961 new listings came online in October 2024, which is up 4% from October 2023 and Third quarter Inventory levels were up 12.6% over 2023.
There were approximately 2.7 months of Inventory calculated in October 2024, with the median Days on Market at 25, up 56.2% from October 2023 and the median days on market up 46.7% YTD.
We still need additional listings market wide to achieve a balanced market of 5 months of inventory.
Absorption rate by Area
NEW CONSTRUCTION – New construction represents 48% of all pending contracts in the MLS and new construction comprises approximately 36% of the closings.
FORECLOSURES AND SHORT SALES – have declined even further to a combined 0.7% of all available listings This market continues to be basically nonexistent and there are very few “newly distressed” properties in the pipeline.
MM+ We are roughly double the monthly pre-pandemic sales levels of over Million dollar plus properties. This market segment remains robust.
If you have questions or have a real estate need, please don’t hesitate to contact me!
The city of Charleston’s Design Review Board approved guidelines for a proposed overhaul of Citadel Mall into the mixed-use “Epic Center” concept with greenspace, entertainment, retail and housing.
When transformed, the Epic Center project could have more than 4 million square feet of mixed uses, including offices, medical facilities, meeting spaces, residences, restaurants and a world-class sports facility, according to Citadel Mall’s lead investor Richard Davis.
Futuristic plans show large-scale development around the mall with multistory buildings and a mix of uses. The development is projected to begin in 2025.
Real Estate Matters in Charleston SC - Gena Glaze 