Real Estate

The ‘madness’ ends as the Greenville real estate market returns to normal.Greenville Real Estate Special Compensation

The home is located on East North Street through a charming and historic area just northeast of downtown Greenville with over 20 exhibits in 24 hours and 4 offers from prospective buyers. did. In some cases, the home-buying frenzy that has gripped the region over the past two years seems to be holding up.

or maybe not.

5.Robby Brady(Provided)

“Eight or 10 months ago, I would argue, there were probably twice as many shows and 10 offers,” said Robbie Brady of Allen-Tate Realtors, who listed the house. And if it gets a little more rural or a little more unique, like the log cabin I just listed, it’s up to 3 weeks, but even before that it’s 4-5 days. It was selling. So we are definitely normalizing.”

That’s evident in July figures released by the Greater Greenville Association of Realtors, which showed closed sales were down 11.1% year-over-year. About the coronavirus outbreak. May’s close was also down 16.9%, and the last time the Greenville market experienced a year-over-year monthly sales decline was in June (down 4.1%) and July this year.

“We’re telling people it’s a fix. Seeing what Covid has done to real estate made it kind of crazy. People can FaceTime without stepping into hardwood.” They were buying a house, and they were dying to get it with multiple offers within hours.

Jacob Mann

1.Jacob Mann(Provided)

“Well, if you list a good house on a good street at a good price, you’ll get a good offer,” Mann added. “But I also put a great home on the market that got multiple listings from day one. , we’ve been on the market for two weeks, which means it’s all about product, location and price right now.”

“Strength is not so bad”

The pent-up buying spree unleashed by the end of pandemic lockdowns has led to a desperate scramble for housing in the Greenville area, which is only just beginning to settle. skyrocketed and ratings were completely beaten. Prospective buyers began abandoning even inspections in an attempt to sway sellers. Out-of-town buyers regularly purchased homes they had never seen in person.

Huge cash offers could come at any moment from transplanters who sold properties in other markets with higher average property prices, and illiquid prospective buyers lost their homes again and again. The normalization of the Greenville area has quelled some of the frenetic competition that has defined the area’s real estate market for more than two years.

“You’re not looking at straight cash right now like a madman abandoning valuations,” Mann said.

A year and a half ago, Brady said he coached his team’s agents to list homes in the very high end of the price range. Now that target has slid into the middle or mid-high part of the price range. Brady added that he no longer sees inspections shaking hands or using escalation clauses to beef up offers in the case of competing offers.

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“Again, it’s becoming more normal,” Brady added. So we’re going back to those buyers and telling them that while the prices aren’t going down, the intensity isn’t too bad.

In fact, despite declining sales over the past two months, the median closing price of homes in the green building market continues to rise, up 19.8% compared to July 2021, according to GGAR, up 7% from July 2021. It hit a high of $319,390 for the month. The Greenville area median rose for the 30th straight month of year-over-year gains, dating back to the most recent decline in January 2020, totaling $112,140 over the period.

“Historically, when interest rates rise, home prices typically fall,” Brady said. “But we don’t see that because demand and supply are still out of whack.”

GGAR’s July figures show some hope on that front. Greenville market housing inventory has increased sharply year-on-year every past three months, including a whopping 70.3% in July. Greenville’s current stock count is his 2.7 months, the highest since mid-2020. That’s still not enough for a balanced market (considered six months of housing inventory), but it’s still a leap from the last two years.

“Many people were scared, or at least hesitant, to put their homes on the open market because they couldn’t find the downsize or step up of their dreams. So we top producers had to find a way to find a home and get a listing for a buyer. I was hesitant about it, so I had to turn it around and put the cart in front of the horse,” Mann said.

“Now those people see some houses pop up and sit[on the market]for a while. So they’re hesitant or nervous about their next step up or downsize So I think you see part of it.”


These trends are not unique to Greenville. According to the National Association of Realtors, the national real estate market fell 20.2% in July from a year earlier. According to SC Realtors, Palmetto’s close fell 17%. Of the 16 real estate associations in the state, only one had increased sales in July. Cherokee County is a small market with 49 sales in a month. A large wave of widespread pandemic demand seems to have reached its peak almost everywhere.

Greenville’s rate of decline in July was also much higher than the rest of the state, with a 27.7% decline in Greenwood, a 26.2% decline in Hilton Head, and a 21.8% decline in Aiken. And within the upstate, some price points proved more resilient than others, such as the luxury market, where sales of homes over $1 million increased 31.7% in July. I’m here.

“That’s probably still one of our strengths,” Mann said. “Again, it’s the product. There are a lot of people waiting for $1.5 million to he $2.5 million homes to hit the market. That market is still pretty strong.”

Whether it was a correction or normalization, it seemed inevitable: The 13.5% price rise witnessed by the Greenville market in 2021 simply wasn’t sustainable.Over the past two months. Industry experts trust the green building market despite declining sales. After all, his closing price of 1,399 in July was more than any month in his 10 months before the region’s pandemic selling began.

“We live in a hot area. We have a lot of immigrants from New England and the West and Florida. It’s a great downtown and a lot of things people love, which makes our job easier,” says Brady. added Mr. “So whatever happens is going to be positive in terms of home values ​​and resale.”

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