Larger home selection, dip in mortgage rates give SC homebuyers ‘wiggle room’ (2024)

South Carolina home sales climbed in April, and growing inventory levels combined with a recent decline in mortgage rates could help keep the market stable through the summer.

The number of homes for sale throughout the state surged 40 percent in April, more than doubling the market selection in 2022.

Homebuyers now have more than 22,000 options to choose from and the advantage of slightly lower borrowing costsheading into summer.

The upturn is welcome after homes sales statewide got off to an iffy start in 2024 and heading into the busy spring season. Residential purchases rose 7.2 percent in April after a nearly double-digit dip in March, according to monthly data by South Carolina Realtors.

Last month marked the first positive April since 2021.

Overall, 7,906 homes changed hands across the Palmetto State in April at a median sales price of $340,000— up 5.4 percent from a year ago.

Several submarkets reported double-digit jumps in sales, with the two largest-volume markets in Charleston and Myrtle Beach up 8 percent and 2.1 percent, respectively.

The greater Greenville area spiked 15.8 percent and Columbia rose 13.9 percent.

Spartanburg saw the second-biggest leap in April with an 18.5 percent rise in sales— second only to Beaufort, where closings surged 27.2 percent.

The Florence-based Pee Dee region took one of the hardest hits along with Cherokee County, with sales dropping 17.1 percent and 18.8 percent year over year, respectively.

As for prices, Hilton Head remains the highest-priced market with median home sales reaching $550,000. Charleston follows steadily behind at $425,700.

Home sales in the city of Greenwood —about 50 miles south of Greenville —fell 5.7 percent year over year. Prices soared 32.3 percent, however, putting the small city on par with the Aiken and Spartanburg markets.

Mortgage rates continue to be one of the biggest hurdles for homebuyers, but a dip for the second consecutive week will offer a bit of breathing room heading into the summer, according to Sam Khater, Freddie Mac’s Chief Economist.

“Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates,” Khater said. “The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.”

As of Thursday, the average 30-year fixed-rate mortgage fell to 6.94 percent from 7.02 percent a week earlier, financierFreddie Macreported. The comparable but shorter-term 15-year home loan also fell, landing at 6.24 percent from 6.28 percent.

"May has been a better month for the mortgage market, with the last three weeks showing declining mortgage rates and increasing applications," said Bob Broeksmit, CEO of the Mortgage Bankers Association. "Rates below 7 percent are good news for prospective buyers, and MBA expects them to continue to inch lower this summer."

The Federal Reserve remains undecided on when or whether it will cut its key interest rate this year, which would trickle down to mortgages.