Are Home Values About to Fall?
The housing market is shifting, but the impact varies by location.
A recent Wall Street Journal article highlighted national trends, noting that the supply of homes for sale remains below normal levels. As of January, U.S. existing home inventories were still 16% below where they were five years ago, according to the National Association of Realtors.
Many homeowners with ultra-low mortgage rates have been hesitant to sell, unwilling to lose their favorable borrowing costs. However, this “lock-in effect” is loosening as more people decide they can no longer delay moving, leading to an increase in supply.
The pace of inventory recovery differs by state. In Texas, the number of homes for sale is 20% above pre-pandemic levels, with Florida and Colorado also seeing increases. In the South, where a higher percentage of homeowners own their properties outright, more sellers have the flexibility to enter the market without needing to take on new loans.
While home prices may seem overvalued nationwide, the uneven supply suggests that some areas may experience price drops while others continue to see growth.
Local Market Update
While national headlines provide a broad perspective, here’s what’s happening in our local market:
- Sales: Pending sales decreased 2.6% in 2024, totaling 5,084.
- Listings: The number of homes available for sale in the Lowcountry rose significantly, up 27.7% compared to the previous year.
- Prices: Despite more inventory, home prices continued to rise. The overall median sales price climbed 5.4% to $545,664. Detached home prices saw an 8.2% increase, while attached home prices rose 3.7%.
- List Price Received: Sellers received an average of 97.9% of their original list price, reflecting a slight year-over-year decrease of 0.2%.
Bottom Line
Market conditions vary by location, making it essential to consider both national trends and local data when making real estate decisions. Whether you’re looking to buy or sell, Jeff and I are here to help. Reach out anytime, and let us know how we can assist you!
Our Thanks,
Johnny & Jeff
