Greenville, SC Home Buyer's Blog

You already know that 2006 was a record year for the Greenville real estate market. The Multiple Listing Service reported  a record number of transactions (10,348). That’s an increase of 9.1% The average price was up 4.7% and the median price was up 1.6% over 2005. The market softened in   November and December with numbers down from the previous year, but overall, it was a great year.
Now my predictions for 2007. There will be a small decline in the number of transactions for 2007, probably only one to two percent, but a retreat none the less. The average price and median price will go up modestly, consistent with 2006 numbers. The market will shift more toward the buyers side of the equation for most of 2007, until inventory begins to tighten late in the year. New construction inventory will remain above average until the end  of the summer when it should reach equilibrium.
There was a feverish pitch of  subdivision development initiated during 2005 and 2006, which will deliver a large number of new lots to the market in 2007. Several production builders are making their exit from the local market, but they will be replaced by new regional builders that are excited and in the expansion mode.  New construction incentives will be attractive for most of the year in 2007 as builders try to regain the momentum they achieved in first half of 2006. It should take most of the year to absorb the excess supply of building lots and new construction incentives to abate. This is not good news for Sellers of existing homes. Days on the Market will increase from 84 to 95 by the end of the year and competition by Sellers will be aggressive, but certainly not distressed. 
Consistent increases in the median price and number of transactions has been characteristic of our market for more than 15 years. Corporate expansion and the associated hiring and relocation of employees has historically been the most important factor of that pattern. The recent  demographic phenomenon of new residents relocating to our market for a “new lifestyle “ generated record growth in 2006. The big questions for 2007 are will this trend continue, and will the economy remain resilient with the volatile Geo-political environment. Our market is becoming a final destination for the many baby boomers beginning to retire, and particularly on the North side of the city. Couple this new demographic with the increased investment in downtown and the continued corporate expansion and you get a quality environment for sustainable long term growth. There will be pauses in the market resulting more from macroeconomic variables like interest rates and the over all economy, but in the long term, I’m very optimistic. Now it’s time for me to say this is just my opinion and it’s only worth what you paid for it, but I like the idea of making a prediction and then looking back in 2008 to see how I did. As always, I want to thank you for the confidence you place in me each time you refer a colleague, friend, or family member to me. Our family wishes your family a wonderful 2007. Mary, Bennett, and Keith