Why the 2021 Housing Market in Beaufort South Carolina is Very Different from 2007
The housing market in 2020 and 2021 has been absolutely on fire! The Beaufort market is no exception. However, when houses are selling like hotcakes, there are always concerns of a crash like the one we witnessed in 2007 and 2008. When you look deeper, you can see the housing market in Beaufort South Carolina is very different today than it was back then. Here’s why!
More Conservative Lending Practices
One of the major contributors to the Great Recession was the practice of sub-prime lending. At the time, banks and credit unions were allowing borrowers to take on loans that it was not clear they could repay. Some lenders even went as far as seeking out borrowers with high debt-to-income ratios and low credit scores.
Nowadays, lenders have learned their lesson and are slower to make such risky lending choices. They are more thorough in obtaining documentation from borrowers that clearly prove they shouldn’t have an issue paying their loans back. That’s good news for everyone.
Low Supply Coupled with High Demand
The basic economic principle is true in the housing market: when supply is low and demand is high, prices go up. You can see that playing out in the Beaufort market like you can in most markets across the U.S. In March, the South Carolina Realtor Association released its report on the state’s housing market data which included news that inventory in the state had hit an all-time-low for February. The trend of low inventory continued in the summer.
As you’d expect with the low inventory, prices have climbed. While seeing prices continue to go up may scare some buyers, it really shouldn’t. This is a sign of a normal, healthy market.
More Equity Means More Buyers
Equity has skyrocketed for homeowners across the country, especially in the last year. For many homeowners, this creates the perfect opportunity to sell at a great price and upgrade to something bigger. Because of this, first-time buyers aren’t necessarily the ones driving transactions with Beaufort real estate right now. It’s the increased number of qualified buyers that are ready to level up!
If you look back at 2009, you’ll see that almost one-fourth of mortgaged homes in the country were valued at less than the amount the owners owed on the mortgage. The shift in equity today means that borrowers are less likely to default on their mortgages.
Make Real Estate Moves in the 2021 Beaufort Market with Kimberly Hardin
With all of this in mind, you can see that the current housing market in Beaufort South Carolina does not resemble the market that led to the Great Recession. You shouldn’t have to worry about seeing a crash anytime soon.
If you’re confident that now is the time to list your home, get in touch with Kimberly Hardin of Beautiful Beaufort Homes today! I’ll help you take advantage of today’s lucrative, fast-paced market and make sure you get top-dollar for your home. I take the stress out of Beaufort real estate transactions!