Greenville, South Carolina, has the sixth-largest real estate market in the state. If you include the larger metro area, it becomes the fourth largest market in the state. As of April 2020, the market is somewhat competitive, but owners have not seen their properties appreciate as much as the national average over the last five years. This must leave one to wonder when the time is right to buy in Greenville.
How Will the COVID-19 Pandemic Affect Housing Prices?
The big unknown is how the coronavirus pandemic will affect housing prices. Nationally, there were fewer homes listed at the end of March than is traditional for the start of the typically busy spring selling season. During that same time, the rate at which home prices grew declined. The rate of growth was the slowest since 2013, according to Market Watch.
The Effect of Stimulus Packages
The key to what housing prices will do in Greenville depends on the stimulus package and how long the pandemic lasts. If the stimulus packages are more than buyers in Greenville need, then there may be inflation in the economy. If that occurs, then housing prices are likely to fall. If the stimulus packages are not enough, then unemployment rates are expected to rise. If that happens, then homeowners are likely to default on their mortgages, which can send the market down. Only if congress and state lawmakers make precisely the right decision will home prices stay the same or rise slightly, according to Dr. Ken H. Johnson, who is a professor at Florida Atlantic University’s College of Business.
What Will the Effects be on Housing Prices in Greenville?
The long-term effects on housing prices in Greenville due to COVID-19 are unknown. If the pandemic had not occurred, then now would have been a great time to buy a home in Greenville, as most predicted that home prices would have continued to rise. Greenville is already posed to increase its manufacturing base. If more manufacturers choose to return their operations to the United States, then that base should expand greatly. Greenville’s transportation system makes it a great place to conduct business. When compared to many other states, South Carolina, including Greenville, is very pro-business. The state has no state income tax, it has available research and development facilities, and it boasts an outstanding educational system.
What housing prices do in the future is hard to predict. Keep an eye on how long the pandemic lasts and the stimulus packages. One thing is certain, Greenville is poised for growth faster than many other locations in the United States.