South Carolina Housing Market 2023 Report
What’s the South Carolina Housing Market Like?
Home prices in South Carolina have appreciated 152.0% higher than the national level from last year. Looking back three years at the median price in October 2019 compared to October 2022, prices have increased 47.5% in South Carolina VS 35.8% nationwide.
As of October 2022, the median price for a home in the state was $353,200, which is up 12.6% above last year’s median price. Comparing prices over the last three years, we can see they have decreased -2.4% from the peak of $362,000 in Jun-2022.
Sales volume has also decreased recently. In October 2022, there were 6,201 homes sold in the state of South Carolina, a decrease of -12.5% from the previous month.
Comparing year-over-year, we saw a decrease of -22.7% in sales from October 2021, when there were 8,026 home sales.
The number of sales peaked at 9,960 sales in Jun-2021; compared to October 2022’s numbers, we are down -37.7% in the number of homes sold from the height of sales activity of the last three years.
It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices in South Carolina.
How Does The South Carolina Housing Market Compare to the National Housing Market?
The South Carolina housing market is similar to other markets because supply and demand drive housing prices. Mortgage rates also impact South Carolina in a similar way as the rest of the nation.
South Carolina’s home prices and sales numbers have begun to slow down along with the rest of the country. Differences in the regional economy of some of South Carolina’s metro areas make those markets more vulnerable and others more resilient to the current economics.
The current median price of homes in South Carolina is $353,200 compared to the national median sales price of $397,549. Over the past three years, the median price of homes in South Carolina has increased by 47.5% compared to the national average of 35.7%
South Carolina Metro Areas With The Hottest Housing Markets
The state of South Carolina has seen slightly above-average growth in housing demand in recent years. Consequently, prices had also gone up at a good pace. Some areas within the state have outperformed others though. We will look at the cities with the highest increase in the median price year over year.
The top markets with the highest appreciation rate:
- Boiling Springs
- Red Hill
- Surfside Beach
Boiling Springs is a beautiful city located in the state of South Carolina. The city is known for its stunning natural scenery, and its population is approximately 13,000. Boiling Springs is a great place to live if you enjoy the outdoors, as there are plenty of parks and trails to explore.
The city also has a thriving arts and culture scene, and there are plenty of restaurants and cafes to enjoy. Boiling Springs is a great place to call home if you want to experience the best of what South Carolina has to offer
Boiling Springs’ home prices have been doing quite well over the last few years; in fact, Boiling Springs topped the list of cities in South Carolina with the largest increase in prices in 2022 with an increase of 35.2% from the prior year. For 2022, October’s median price was $317,990.
In October of 2022, there were 27 homes sold in Boiling Springs up 110.0% from the same period in 2021.
The median days on the market in October 2022 was 42, which indicates a balanced market by today’s standards. Compared to October 2021, the median days on the market is up 110.0% compared to October 2022.
Red Hill is an unincorporated community located in Horry County, South Carolina. It is located near the towns of Aynor and Galivants Ferry. It has a population of approximately 16,000 people.
Red Hill is known for its small-town charm and its close proximity to the beaches of Myrtle Beach. It is also home to the Red Hill Bluegrass Festival, which takes place annually in May. The festival features bluegrass music, arts & crafts, and other activities for the whole family.
The Red Hill Real Estate market is currently a somewhat competitive market. In October 2022, 22 homes were sold with a median price of $299,282. The median home price in Red Hill has increased 35.0% from October of 2021, while the number of homes sold was 22, a -52.2% decrease compared to the same month the year before.
The median days on the market in October 2022 was 68, and it’s up 19.3% compared to Sept 2021.
Seneca is a town in South Carolina with a population of around 8,000 people. The town is located in the northwest corner of the state and is bordered by the Blue Ridge Mountains.
Seneca is a popular tourist destination due to its many outdoor activities and its mild climate. The town is also home to several colleges and universities, making it a great place to live and work.
Seneca is considered a somewhat competitive market right now. In October 2022, there were 27 homes sold with a median price of $299,282. The median price in Seneca was up 35.0% over October of 2021, while the number of homes sold was down -20.6% compared to the same period in 2021.
The median number of days on the market for October 2022 was 47 days which is down -13.0% from October of 2021.
Inman is a city located in the state of South Carolina. It is the county seat of Spartanburg County. The city has a population of around 3000 people. Inman is a beautiful city located in the state of South Carolina. It is the county seat of Spartanburg County and is home to around 3000 people.
The city is known for its stunning scenery, mild winters, and wonderful summers. Inman is a great place to live and work, and the city benefits greatly from the tourism trade. Tourism is the 2nd largest employer after the government. There are plenty of outdoor activities to enjoy in Inman, and the city is a great place to raise a family.
The real estate market in Inman is considered very competitive. There were 27 homes sold in Oct 2022, with a median price of $310,000 .The median price in Inman had an increase of 31.9% from Oct 2021, while the number of homes sold was no change 0.0% compared to the same period last year.
The median number of days on the market for Oct 2022 was 24 days which is down -45.5% to the same month in 2021,
Surfside Beach is a town located in Horry County, South Carolina. As of 2021, the population of Surfside Beach was more than 4000. It is known as a family beach resort town, with a popular fishing pier, public beach access, and many recreational activities.
Surfside Beach is famous for its wide, white sand beaches and is a popular vacation spot for people of all ages. The town is also home to the popular Oceanfront Bar & Grill, as well as numerous local restaurants and shops
Surfside Beach is currently a not very competitive market. In Oct 2022, 25 homes were sold with a median price of $505,000. The median price in Surfside Beach saw an increase of 30.0% over Oct 2021, while the number of sales was down -26.5% compared to the same month in 2021.
The median number of days on the market for Oct 2022 was 92, which is an increase of 30.0% compared to the same month last year.
Higher Mortgage Rates Could Slow Price Growth in South Carolina
How will interest rates affect the South Carolina housing market? We are already experiencing the impact of rising interest rates across the nation. Price growth in South Carolina has been flattening or on a slight decline for several months in 2022. However, South Carolina is such a high-demand destination that it may very well fare better than many other areas of the country.
As of mid-October 2022, the 30-year fixed rate mortgage is above 7% on average. That represents a 133% increase in mortgage rates in less than nine months. The Feds are on a “no holds barred” approach to curve inflation, and interest rate hikes have become the norm over the last several Fed meetings. Unfortunately, it seems that rate hikes are not done. We anticipate at least another rate increase before the year ends.
Key Market Stats for the South Carolina Housing Market:
As of the latest compiled housing report for October 2022.
|Median Sales Price
|up by 12.6%
|Number of sales
|down by -22.7%
|Median Days On The Market
|up by -2.4%
|Number of homes available
|down by -3.0%
|Months supply of inventory
|up by 50.0%
|% of homes sold above list
|down by -42.2%
|% of home with price drops
|Up by 161.3%
|down by -20.9%
South Carolina Historic price changes & affordability
The South Carolina housing market has seen explosive appreciation for years. The last 3 years have been particularly favorable to homeowners as they saw their homes appreciate by 47.5% in 36 months.
The steep rise in home prices and mortgage rates has shrunk affordability to record lows in the state. A 47.5% spike in home prices and a sharp increase in mortgage rates in the last 12 months does not spell good news for the South Carolina Real Estate market.
We know that the average person’s wages do not increase by 47.5% in three years, so we can see why affordability is a problem. The gap between rising home prices and wages keeps getting wider.
- The housing market is clearly shifting, and South Carolina housing market predictions for the short term seem to point to a declining market along with many areas of the US.
- The next 18 to 24 months will be an adjustment, especially for home sellers and Real Estate professionals. Adjusting to a normalized market that is not heavily skewed in favor of sellers will take time.
- Real Estate markets are highly local and even within the same state, there will be areas that are projected to be hit hard by the market shift and others will fare better.
- Timing the market for buying or selling is a big gamble. If it makes sense for you to buy, go ahead and buy a home. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop.