Greenville Real Estate Market Remains ‘Incredibly Strong’ Despite Lingering Inventory Problems | Greenville Real Estate Special Coverage



When it comes to the hot Greenville real estate market, stocks are everything. There are more buyers than homes for sale, leading to intense competition for any new listing, and sellers regularly collect over 100 percent of their list price.

“I’ve been in this business for 15 years now, and the pace at which agents and people need to move is as fast as I’ve ever seen,” said Amanda Hamet, senior vice president of sales and broker in charge of Greenville’s. Caldwell Banker Kane. “This does not mean that listings do not go to the market – they are, but they just signed a contract within 24 hours. When I started my business in 2005, you made an offer and gave the seller 48 hours to respond. It would be unheard of in this market. ”

However, the May Market Report from the Greater Greenville Association of Realtors appears to indicate little progress in inventory: negative at 23.2 percent, down from negative at 47.6 percent in April and negative at 50.3 percent. percent in March. But experts consider these numbers to be a mirage. As markets are compared on an annualized basis, the spring of 2021 is compared to the months at the peak of the coronavirus pandemic, when job concerns and coronavirus fears led to a suppression of the property market and a decline in both new listings and closed sales. …

Amanda Hamet

Amanda Hamet

The numbers are so skewed that Allen Tate Realtors doesn’t even use year-to-year comparisons, but instead links the 2021 stats to internal goals. “It is difficult to compare March 2020 to March 2021, as it is to April, because in both of these months last year, COVID was so significant. This affected the number of listings that hit the market, it affected the number of written sales, ”said Mark Bardo, Allen Tate’s regional vice president for the northern regions of the state. “In May last year, things started to improve, but even half of May last year was very unfavorable. Thus, year-to-year comparisons may be a little flawed just because we are comparing very different markets in a very short period of time. ”

Indeed, new listings in both April and May 2021 are up double digits compared to the same months in 2020, when some potential sellers refrained from entering the market because they just didn’t want outsiders in their home. during a pandemic. “March and April were in the midst of a closure, so very few stocks came to the market,” Hamet said. “In May, the world began to open up again and we are being compared to some deferred demand. In my opinion, this is a temporary mitigation. This is not an indicator of any shifts in our market. “

“Insatiable consumer appetite”

If anything, the inventory situation in Greenville remains as tense as ever, given that the number of new listings in May actually declined from a month earlier. Homes for sale spend an average of only 31 days on the market, the lowest in the last year. And they make big bucks, on average getting 100.8% of their list price.

The vast majority of homes on the market are single-family homes for resale, Hamet said. In Greenville and elsewhere, new home construction is being hampered by supply chain problems and rising material costs. This means that it takes much longer than usual to create new home communities in the northern regions of the state, vital to alleviating the region’s supply shortages.

“New construction continues to be an area where we just don’t see as much inventory as we need on the market due to supply chain issues,” Hamet said. “There are some serious supply chain issues and every developer, even a major national manufacturer, is really struggling to meet deadlines and get new products on the market because of this.”

Because of this, some builders hesitated to add a lot of inventory, Bardo said. “We need their inventory. We need construction supplies 100 percent right now, ”he added. “The problem they face is that they don’t know what their final list price will be in about 30 days due to the volatility of the cost of materials right now. So I think this is another reason why we don’t see a lot of builder inventory in the MLS. They don’t know how to evaluate it. “

But Bardo also doesn’t think the main problem is supply, not that Greenville continues to gain national recognition for its business environment and quality of life, resulting in an average of 30 people moving to the region every day. “We do a lot of listings as an industry. We have record sales months, and it’s impossible to achieve a record sales month without a lot of listings, ”he said. “So I think we should not be looking at the listing issue, but rather on the insatiable appetite of buyers right now.”

Mark Bardot

Mark Bardot

Greenville’s inventory situation is further emphasized by those who don’t want to sell because they fear they won’t be able to find somewhere else to live. Or others are worried about a housing bubble like the one that burst in 2008 and triggered the Great Recession. Or even more who would rather sit back and wait for the market to “cool down,” although if the economy reopens and the market continues to grow, this may not happen for a very long time.

Ironically, real estate professionals in Greenville hear similar concerns all the time. They try to reassure them by reassuring customers that the market remains healthy. “This meager inventory shows that the market is still incredibly strong in our region, and I think it will remain strong for years to come,” Hamet said. “I think a lot of what is happening now is that buyers and sellers are very much afraid that this is a bubble. Consumers are still a little scared and shouldn’t be. There are many experts and economists in the industry who say this is not a bubble. In fact, there was a real lack of inventory. “

The 2008 crash was caused by a surplus of subprime loans issued to borrowers who could not qualify for regular loans. “This is indeed a structural defect in the lending and appraisal system. And that doesn’t exist anymore, ”Hamet said. Despite high competition, there are houses on the market; 2697 people in May, the highest monthly figure since October, according to GGAR. And those who wait for the market to cool may end up costing more.

“As more shoppers buy, buy and buy in this voracious customer demand, I think over time we will start emptying this pot of shoppers,” Bardo said. “People are more confident in their work and, in my opinion, there are no economic consequences that could lead to a fall in values. We’ve heard occasional stories of buyers saying, “Well, I’ll wait until the market cools down.” And I believe that you will still pay more because the cost will go up and the interest rates will go up. So if you refrain from entering the market as a buyer because you want to wait for prices to come down, this is a problem that will only get worse, not improve. “

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