SC Real Estate: Have We Hit Rock Bottom?

With 2010 coming to a close, there is one burning question on everyone’s mind; Have we hit rock bottom?

In real estate, just as in any other facet of life, it is important to look at the past to see where you are going. Statistically we are in the year 2000. The party of 2005 is over and we are all dealing with the clean up.

What goes up, MUST come down. The home prices leading up to 2005 were ridiculously high. Mix ridiculous real estate prices with easy credit approvals and the outlandish belief that real estate always goes up and what do you have? Voila! The recipe for a Real Estate Market crash. We have arrived, my friends. This IS rock bottom.

Make no mistake about it, the foreclosures in the past two years have not all been due to job loss. A great number of foreclosures were simply people walking away (even when they could afford it) because they owed more than their property was worth and felt it was a “good business decision”.

No more “get rich quick”. Stabilization is here. While buying a home now is certainly a wise choice and a great investment, do not expect a quick return.

While the market is turning, it did not fall overnight and it will not rise overnight. Luckily, South Carolina did not suffer devastation to the degree that other markets did. We were fortunate.

We are sure to see a slight decrease in home prices in some areas and stabilization in others in 2011. If you are a seller, you need to list your property now to prevent any further loss.

If you are a buyer, there will never be a better time to buy. As the year progresses, we will see stricter lending practices and higher interest rates (they are climbing now), plus you will never see home prices this low again. 

For question on buying or selling in today’s tough market, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or hope.dorn@era.com.