A Snapshot of the Columbia Marketby Maureen Soltis |
If you have been following the news lately, you’ve probably heard all the media hype about “real estate bubbles” and “shifting markets”. Across the nation, many regions have experienced a significant increase in prices followed by a sharp decline, hence the “bubble” experience. This has resulted in a slow down in many markets, with decreases in the number of homes sold as much as 55% in some regions.
Columbia continues to be a stable market. There was a 2.5% overall increase in the number of homes sold this year compared to last year (as of July 2007). While that’s not major, it is considering what has happened across the nation. The Carolina region is one of the few regions that continues to see gains in homes sold.
The rest of the good news is that the average rate of appreciation in Columbia has
been running about 3 – 5% per year for the past several years. So, in addition to the increase in the number of homes sold, the homes are also selling for more.
been running about 3 – 5% per year for the past several years. So, in addition to the increase in the number of homes sold, the homes are also selling for more.
Much of the nation has also experienced a noticeable “shifting market”, moving from
a “Seller’s” Market (more buyers than available homes) to a Buyer’s Market (more homes available than buyers). A Seller’s Market is typically any market that has less than 5 months of inventory. In a “Buyers” Market, there is more than 7 months of inventory. And, a shifting market is 5-7 months of inventory.
a “Seller’s” Market (more buyers than available homes) to a Buyer’s Market (more homes available than buyers). A Seller’s Market is typically any market that has less than 5 months of inventory. In a “Buyers” Market, there is more than 7 months of inventory. And, a shifting market is 5-7 months of inventory.
The Columbia market has moved into a Buyer’s Market but not to the same degree or at the same rate. Across the nation, the inventory on the market is as high as 3-4 years. In the Columbia market there is about 8 months of inventory. (This means if the same number
of homes are sold in the next 12 months that were sold in the last 12 months, without adding any new listings, it would take about 8 months to completely sell all the homes on the market right now).
of homes are sold in the next 12 months that were sold in the last 12 months, without adding any new listings, it would take about 8 months to completely sell all the homes on the market right now).
The following grid shows the market activity (as of June 2007) for the Columbia market as a whole. Statistics are also available by market segment or zip code. (Just contact me with your area or zip).
Columbia Market Statistics
|
12 Months Ended 6/30 |
Total Units Listed |
Total Units Sold |
Total Units Remaining |
Inventory Accumulation (Months of Inventory) |
Average List Price |
Average Sold Price |
|
2005-2006 |
18,830 |
12,013 |
6,817 |
7.4 |
179,170 |
159,879 |
|
2006-2007 |
20,731 |
12,313 |
8,418 |
8.2 |
199,299 |
170,977 |
|
% Change |
10.1% |
2.5% |
11.2% |
6.9% |