Are We In A Housing Bubble?
Transcript
I wanted to give you a fall market update for the Lexington real estate market. This is the area that feeds into Lexington, River Bluff, and White Knoll high schools.
So, we finished this summer with a median sales price that was 13.3% higher than 2020, so sellers have benefited from a huge jump in appreciation across the board. A week ago, I had a seller close 35% higher than they purchased for just two years prior, so it's obviously a great seller's market.
So, what is going on in Lexington? Are we in a housing bubble? Will the market crash? These are questions I get a lot. For years, the Midlands of South Carolina has been one of the fastest-growing, most-affordable communities in the nation, and we've seen over the last year-and-a-half just a loss of affordability. Homes that were $150,000 two years ago are now approaching $200,000 and the lack of inventory at the higher price points has resulted in massive appreciations for the higher end market as well — especially on Lake Murray.
Now, this is not a bubble and we're not forecasting a market crash. In fact, we anticipate our market to continue to be very strong and steady as we smoothly return to a more normal rate of appreciation.
So, is it a good time to sell? Absolutely! There's never been a better time. Is it a good time to buy? Yes! We're still seeing multiple offers. It's a competitive market, but it's not as crazy as it was in the spring or the summer. It's still important to have a strategy to find and secure a home; however, in most cases, buyers are not having to go absolutely crazy to get a home. A solid competitive offer will most likely get it done. You don't need to give up one of your few children.
As always, if you're curious about the value of your home, how much it's appreciated over the last year, or you're looking to buy anywhere in the Midlands at any price point, feel free to reach out. I'd be happy to help!