Home price appreciation will moderate to 8 – 10% in 2022 and return to a more normal 4 to 5% as we head into 2023, predicts MarketNsight Founder and Chief Analyst John Hunt. The housing analysis firm recently held its biannual MarketWatch Atlanta event where Hunt gave a market update and his predictions for 2022.
As the housing market continues to improve nationwide, Aiken is making sure it doesn’t get left behind. The Aiken Board of Realtors recently announced that area home sales are up 32 percent from March of 2011.
Local industry professionals attribute this increase to rising rent prices and lower interest rates. Average rent increased to $820 from $740 between February 2010 and February 2011. During this time, the average sales price dropped to $131,000 from $160,000. Similarly, the number of closings during this period increased 13 percent. The historically low interest rates–three to four percent on average–are also a contributing factor.
In addition to an increasing housing market, job stability in the area is also on the rise. For the first time in three years, South Carolina’s unemployment rate has dropped below 9 percent to 8.9 percent. Aiken’s unemployment rate is even lower at 8 percent, dropping .6 percent over the past year.
As long as the number of jobs continues to increase and as long as housing continues to become more and more affordable, Aiken should continue to see an improving housing market.
If you’re interested in buying a South Carolina new home, be sure to visit our site for all of the latest information.
Q: I’m a first-time home buyer. Is it best to wait, keep renting, and hope that prices will get even lower?
A: If you continue to wait, you may never be able to afford to get into the housing market. Even as home prices are currently moderating or falling, depending on where you live, rents continue to climb. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year, fixed-rate mortgage.
Once you become a home owner, you are able to take advantage of the tax deductions that homeownership offers, and you begin to build equity in your property.
With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter-home. After a few years, you can use those equity gains to sell your starter home and move into a bigger house. The sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family.