CoreLogic’s Chief Economist Frank Nothaft has stated, “The lean supply of homes for sale is leading to higher sales prices and fewer days on market, and the supply shortage is more acute for entry-level homes. During the first quarter, we found that 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less. Mary's mortgage rates average a seven-year high of 4.6 percent, with an increasing number of homeowners keeping the low-rate loans they currently have, rather than sell and buy another home that would carry a higher interest rate.”
50% of homeowners had a rate of 3.75% or less in the first quarter 2018
The 2018 CoreLogic Consumer Housing Sentiment Study: May Findings
In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the homebuying or renting decision process. Across the U.S., 15 percent of homeowners and 28 percent of renters have indicated a desire to buy a home in the next 12 months, while only 11 percent have indicated a desire to sell.
The research reported the long-term desire for homeownership is much stronger among renters in markets that have the highest home-price growth. Lagging supply in these markets is likely to continue as fewer current homeowners are considering putting their homes on the market. Over the next 12 months, 41 percent of renters are considering buying while only 11 percent of homeowners are considering selling over that same period. That is nearly four times as many renters than homeowners, which is the crux of the available housing-supply imbalance.
President and CEO of CoreLogic Frank Martell states that, “The CoreLogic consumer research demonstrates that, despite high home prices, renters want to get out of their rental property and purchase a home. Even in the most expensive markets, we found four times as many renters looking to buy than homeowners willing to sell. Until more supply becomes available, we will continue to see soaring prices in cities such as Denver, San Francisco and Seattle.”
4X as many renters looking to buy as homeowners willing to sell
As for South Carolina, the change in home value for May 2018 stayed at 5.3 percent higher than the same time last year. The projection for May 2019 is 4.6 percent higher. Month over month percent increase is showing an actual of.9 percent and projected 0.7 percent.
Our closest Top U.S. Metro area is still Washington, D.C. which is now showing a 3.0 percent home price index change over the same time last year.
The latest market conditions indicators Metro area maps for May 2018 is showing Greenville-Anderson-Mauldin are overvalued and that trend will continue into May 2023. Our neighboring metro area to the north Spartanburg is showing normal valuation which will continue into May 2023. Columbia metro area continues to be undervalued. While the coastal areas of Charleston, North Charleston, Hilton Head Island, Bluffton and Beaufort continue to be overvalued.
The impact of this latest monthly study proves that home prices in our area and across the U.S. continue to rise due to a lack of inventory and now the pressure of renters wanting to be homeowners. It is a great time to sell! There are lots of buyers. However, interest rates are rising along with the economy so if you are wanting to move up or move down or just buy for the first time, don’t wait, do it this year. I can help you make a plan and get it done.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.