Columbia Home Sales Up 19% in July

Greater Columbia home sales climbed nearly 19% in July compared with the same month in 2014, the South Carolina Association of Realtors reported.

The number of residential homes, condos and villas sold last month totaled 1,160 compared with 976 for July of 2014, the trade group said.

For the second quarter, home sales climbed 19.6% to 3,185 units compared with 2,662 for the second three-month stretch of 2014. Through the first half of the year sales are up 20.4% or 6,591 units over the first half of 2014.

Meanwhile, the median price for July rose 5.3% to $176,450 compared with $167,500 for the same month in 2014. Prices for the second quarter rose 9.5% to $174,000 compared with the second quarter of 2014 while for the first half prices rose 7.6% over the first half of 2014.

The sales pace remains brisk as the average number of days a home is on the market dropped 13.3% to 65 days in July compared with July 2014.

Statewide July market data showed new listings rose 6% to 10,141 while pending sales increased more than 7% to 6,502. Inventory shrank almost 6% to 40,625 units.

Prices moved higher as median sales price was up almost 8% to $180,000, while the number of days on market dropped 10% to 99 days and the months’ supply of inventory was down 18% to seven months.

“We're glad to see that many economic trends are continuing, revealing a stable housing market and even more opportunity for South Carolina's citizens to achieve the dream of homeownership,” said Nick Kremydas, CEO of the association.

Columbia's Building Boom Fueled by Student Housing & Urban Living

If you haven't been near Columbia's Colonial Life Arena lately, you're in for a shock.

Almost everywhere you look there are construction crews, heavy equipment, and detours as workers scramble to transform several locations into living space for thousands of new residents.

A massive project known as 650 Lincoln near the Carolina Coliseum offers nearly 900 beds alone. And within a five block radius, there are five more developments at varying stages of construction, adding another 1,700 beds.

Most, but not all, are aimed at students.

"We actually have coming online probably within the next two years around 1,300 market-rate apartment units as well to help swell the population," said Columbia Planning and Development Director Krista Hampton.

"Columbia is finally reaching out to the river and bringing a lot of people in to enjoy it," Fred Delk with the Columbia Development Corporation said. "We're getting 3,000 new residents. We'll have 5,000 people living downtown soon. Probably another 2,000 next year and maybe two or 3,000 the year after that."

It's exhilarating news for any city, but Columbia's building boom doesn't stop there.

In other parts of downtown, five more projects proposed or underway would create close to 2,500 more places to call home. They do not include the apartments and townhouses expected to fill the city's a large portion of the city's Bull Street Common property.

There's also major construction underway as the University of South Carolina adds to its Innovista campus with the long-delayed Innovation Center now rising at the corner of Blossom and Assembly streets.

"Columbia now is on the precipice of really fulfilling the potential," former Columbia Mayor Bob Coble said. "All the hard work over the decades coming to a point where the private sector believes it is moving forward."

"It's good for the entire community to see this type of dense urban vertical development." Columbia Mayor Steve Benjamin said. "So it's not just about the students. It's also about building a tax structure that has a third leg that supports development all across the city."

In fact, a critical change in city tax policy helped spark the explosion: a 50 percent, 10-year tax cut on student housing projects if they involved at least $40 million in investment.

"This tax cut is going to yield hundreds of millions of dollars in taxes for Richland One, the county and the City of Columbia," Benjamin said.

Much of the real estate where these projects are being built has provided modest tax revenues until now. At Gervais and Harden for example, the former home of the Greyhound Bus station, Benjamin said the city collected roughly $25,000 a year in taxes from that business.

When another huge student housing development opens at the site in a year, that tax bill could skyrocket to $650,000 -- 26 times what the property had been generating. 

"Having that tax credit available to them really kind of helped grease the wheels and made it more appealing for developers to come in and make the numbers work to make those developments achievable in the downtown area," said Ryan Coleman with Columbia Economic Development.

More people downtown also means more demand for all kinds of services and infrastructure, like food stores, for instance.

"I wouldn't be surprised if we don't see another grocery store or another two grocery stores pretty soon," Delk said.

Empty or underutilized land will become more expensive and more scarce. Delk said prices are already hitting $2 million an acre downtown.

So instead of developers looking to build out they will look at building up, such as putting housing over city parking garages, creating more residential and commercial activity literally out of thin air, giving South Carolina's capital city a much different skyline.

"It's really going to put us on the map," Hampton said. "And I think as a community for so long we've had an inferiority complex that we will need to overcome."

"I think our potential is really only limited by our vision," Coleman said.

One housing project proposed near the USC Horseshoe and known as The Icon on Main could be 15 stories tall. In that case, the University has objected. 

Columbia Housing Sales Jump 20% Compared to a Year Ago

South Carolina’s real estate market continued its four-year-long churn to erase the devastating effects of the Great Recession in June, with homes sales rising in Columbia and across the state, a real estate sales group said Wednesday

Sales of homes, condominiums and villas in the Capital City area rose nearly 20 percent over sales one year ago, according to the South Carolina Realtors monthly report, released Wednesday.

Statewide, homesales were up 15 percent from a year ago as inventory levels continued to march toward what experts define as a normal market – 6 months of housing stock.

Inventory statewide fell 19.8 percent from a year ago to reach 6.9 months of housing stock, marking the 12th consecutive month of year-over-year declines, the report stated.

Statewide median prices were up modestly by 4.6 percent in June, but housing prices in the Columbia area were nearly unchanged, falling by 0.2 percent over a year ago, from $160,400 to $160,000 last month.

Read more here: http://www.thestate.com/news/business/article27328585.html#storylink=cpy

Housing Markets Continue to Rise in Columbia, SC

Home sales in May continued on an upward path with prices rising modestly, pending sales climbing and housing stock declining, according to the monthly market report issued Monday by S.C. Realtors. Columbia median prices rose 3.4 percent in May 2015 to $155,000 from $149,900 a year ago, well below the state median price increase for the period which moved up 9.3 percent, rising from $160,000 to $174,900. Months supply of housing inventory for the state was down 18.6 percent, to a seven months stock on hand, the May report said.

US home Sales Jump in May | Average Prices Close to 2006 Peak

More Americans bought homes in May, a sign of economic strength that is pushing up average prices.

The National Association of Realtors said Monday that sales of existing homes climbed 5.1 percent last month to a seasonally adjusted annual rate of 5.35 million. May was the third consecutive month of the sales rate exceeding 5 million homes, putting home-buying on pace for its best year since 2007.

Solid hiring since 2014 and relatively low mortgage rates have stirred up demand and helped generate more first-time buyers, though rising sales have fueled spiking prices because relatively few properties are listed for sale.

"We can credit that to the stronger job market, a more confident consumer" and some additional listings in an otherwise tight market, said Jennifer Lee, a senior economist at BMO Capital Markets.

Some of the buying might also reflect a rush to capture the benefits of lower interest rates and relatively cheap prices that are jumping higher each month.

"There may be some anticipation of prices going even higher, which is sparking a move off the sidelines," Lee added.

Median home prices climbed 7.9 percent over the past 12 months to $228,700, about $1,700 shy of the July 2006 peak.

The market has just 5.1 months' supply of homes, versus an average of six months in a healthy market.

Economists say that the sales gains of recent months could be short-lived if prices increase so sharply buyers are priced out of the market. The recent rise in mortgage rates could also curtail sales, similar to the higher mortgage rates slashing into sales in the middle of 2013.

Still, real estate has begun to show some strength after muddling through much of the six-year recovery from the recession that has left millions of Americans still owing more on their mortgages than their homes are worth.

Sales jumped in all four major geographic regions: Northeast, Midwest, South and West. First-time buyers also accounted for a growing share of sales, a sign that younger buyers are returning to the market after enduring an economic downturn and sluggish rebound that delayed their purchases.

About 32 percent of the homes sold last month went to first-timers, compared to 27 percent a year ago. The improvement is substantial but still lags behind the historical average of first-time buyers composing 40 percent of the market.

More Americans signed contracts to buy existing homes in April — which should translate into more finalized sales in the following months. The Realtors' seasonally adjusted pending home sales index climbed 3.4 percent to 112.4 in April, the highest reading since May 2006.

Sales of newly constructed homes through the first four months of the year are up 23.7 percent compared to the same period in 2014, according to the Commerce Department.

Builders are gearing up to meet the additional demand.

Approved building permits in May surged 11.8 percent to an annual rate of 1.28 million, the strongest reading since August 2007, according to the Commerce Department. Construction firms are breaking ground on more houses and apartment complexes, with the government reporting a 6 percent increased year-to-date.

Much of that growth stems from the spillover effect from a stronger jobs market. Employers have added 3.1 million jobs over the past 12 months, increasing the total number of paychecks in the economy and the likelihood that more Americans will shop for homes.

Low mortgage rates have also helped, although rates are now starting to steadily rise in ways that might limit sales later in the year.

Average 30-year fixed rates were 4 percent last week, according to the mortgage giant Freddie Mac. That average has increased from a 52-week low of 3.59 percent.

Tour of Homes

Tour of Homes, Columbia's largest open house tour for new homes presented by theBuilding Industry Association of Central South Carolina, starts this weekend! You can pick up a planbook at any Columbia-area Russell & Jeffcoat real estate office.

In Memory of Bob Russell

I want to thank the entire Real Estate Community for the sympathy and condolences in the passing of our Chairman, Bob Russell. To honor Bob's legacy we at Russell & Jeffcoat will continue to grow the company that Bob so loved. Our staff and agents are united and will continue to work extremely hard to honor the memory of our founders, Bob Russell & Abb Jeffcoat. Once again, thanks to everyone for your prayers.

- Ron Roe President/CEO

Home Prices Continue Steady March Upward

National home prices have climbed 4.2 percent in the last 12 months, according to a closely watched housing report out Tuesday morning.

Still, housing is a long way from the heady days of two years ago, when double-digit annual price gains were the norm. Many economists say that's a healthy thing; buyers are better able to keep up.

Read more here: http://www.thestate.com/news/business/article19835295.html#storylink=cpy

Sales of U.S. New Homes Unexpectedly Rise to Seven-Year High

Purchases of new homes in the U.S. unexpectedly rose in February to a seven-year high as stronger job gains helped bolster industry activity amid severe weather.

Americans withstood weaker income gains and higher property prices, braving a chillier-than-usual February to go out and buy a house last month. Further healing in the labor market and a boost in inventory should provide stronger support to an industry entering its busiest sales season.Sales climbed 7.8 percent to a 539,000 annualized pace, the most since February 2008, Commerce Department data showed Tuesday in Washington. The reading exceeded even the most optimistic forecast of economists surveyed by Bloomberg.

“It looks like the spring selling season is off to a good start,” said Stan Shipley, an economist at Evercore ISI in New York, whose projection for 485,000 sales was among the closest in the Bloomberg survey. “With low mortgage rates, if you look at it, it’s very affordable for most potential homeowners,” even as credit remains tight, he said.

Stocks fluctuated as investors weighed stronger-than-forecast gains in consumer prices and new-home sales for clues on when the Federal Reserve will raise interest rates. The Standard & Poor’s 500 Index was little changed at 2,104.5 at 10:30 a.m. in New York. The S&P Supercomposite Homebuilding Index climbed 1.3 percent.

The median forecast of 76 economists surveyed by Bloomberg called for the pace to fall to 464,000. Estimates ranged from 400,000 to 490,000. The Commerce Department revised the January reading up to a 500,000 pace from a previously estimated 481,000.

The figures are based on a small sampling of builders which makes them subject to revisions. The report showed the confidence interval for last month’s reading was plus or minus 15.2 percent. That means there was a 90 percent chance the change in sales in February was between a decline of 7.4 percent and a 23 percent advance.

The median sales price of a new house increased 2.6 percent from February 2014 to $275,500, today’s report showed.

The strengthening in demand last month was led by a record 153 percent surge in the Northeast and a 10.1 percent gain in the South. Purchases fell in the Midwest and West.

The sales data ran counter to other figures that showed industry activity was inhibited by chillier-than-usual weather in parts of the country. Last month, the eastern seaboard saw below-normal temperatures from Atlanta to New York and record snowfalls in New England. The National Oceanic and Atmospheric Administration’s data showed the snowiest month on record for Boston, while record-low temperatures for any February were reached in Chicago, Buffalo and Cleveland.

The supply of homes dropped to 4.7 months at the current sales pace, the lowest since June 2013, from 5.1 months in January. There were 210,000 new houses on the market at the end of February, the fewest since October.

New-home sales, which account for about 7 percent of the residential market, are tabulated when contracts are signed. That makes them a timelier barometer than transactions on existing homes.

Previously owned U.S. home purchases fell short of a 5 million annual rate in February for a second month, National Association of Realtors data showed Monday. Closings rose 1.2 percent to a 4.88 million annualized rate. A 7.5 percent increase in the median price compared with February 2014 was the fastest rise in a year as fewer homes were on the market.

Acceleration in property values is limiting participation among would-be home buyers, while a lack of inventory is giving Americans fewer properties from which to choose.

Sluggish income gains also are a restraint on purchases. Average hourly earnings rose 2 percent in February from the same time last year, less than projected and matching the increase on average since the expansion began in mid-2009.

Still-cheap borrowing costs and steady job gains are helping to offset the impediments to home-buying. The average 30-year, fixed-rate mortgage dropped to 3.78 percent in the week ended March 19, close to the 3.31 percent rate in November 2012 that was the lowest in data back to 1971, according to Freddie Mac data.

Employers added more jobs than forecast in February and the unemployment rate dropped to 5.5 percent, the lowest in almost seven years. The 295,000 gain last month was stronger than the 259,670 monthly average in 2014 that was the best labor-market performance since 1999.

Not all homebuilders are seeing weakness on the horizon. The Bloomberg homebuilders index climbed last week to its highest level since July after Los Angeles-based KB Home said orders for the three months through February rose 24 percent in volume and 25 percent in value from the year-earlier period. KB Home soared 8.4 percent to $15.26, its biggest one-day gain since January 2013.

“Initial indications of demand have been encouraging,” KB Home Chief Executive Officer Jeffrey Mezger said Friday on a conference call with analysts. “Our increasing traffic is a strong indication that demand is on the rise.”

30-Year Mortgage Rates Drop To 3.59%

In the first week of February, 30-year mortgage rates fell for all mortgage loan types including FHA loans, USDA loans, and VA loans; and, conventional loans backed by Fannie Mae and Freddie Mac.

Interest rates are within striking distance of the all-time bests, set in May 2013.

According to Freddie Mac's Primary Mortgage Market Survey (PMMS), the average 30-year fixed-rate mortgage rate fell 7 basis points (0.07%) this week to reach 3.59% nationwide. The rate is available to borrowers paying 0.7 discount points at closing plus a full set of closing costs.

The rate drop marks the fourth week out of five through which mortgage rates have dropped this year.

30-year mortgage rates are now close to 100 basis points (1.00%) percent below where they were at the start of last year; and pricing appears to have found a new range in the 3s.

15-year mortgage rates fell last week, too, falling six basis points (0.06%) to reach 2.92% on average, nationwide.

The Freddie Mac rates are based on a weekly survey of approximately 125 U.S. banks.

The survey asks banks to submit to Freddie Mac their "going rate" for a prime mortgage borrower where "prime borrower" is defined as one with a credit score of 740 or higher; with a purchase downpayment of twenty percent or more; with a debt-to-income ratio which meets mortgage guidelines; and, with ample reserves to support a mortgage approval.

Loans for prime borrowers are loans made against single-family residences including detached homes, certain town homes and attached properties; and, condos which meet minimum eligibility standards.

The Freddie Mac survey does not reflect FHA mortgage rates or VA mortgage rates, nor does it show rates the for no-money-down USDA loan. Freddie Mac's figures are for conventional loans only.

As compared to the start of last year, homeowners now pay $54 less per month for every $100,000 borrowed -- a savings of 10.6 percent.