Bluffton, South Carolina, is a charming coastal village in Beaufort County. With beautiful surroundings and extensive waterfront space, Bluffton is an attractive haven for real estate investors seeking both value and luxury. Nevertheless, the volatility and uncertainty of the economy has begun to weigh on the minds of both buyers and sellers preparing to make their next move. Many investors and homeowners are eager to better understand the current Bluffton housing market. Here are observations and data points that provide insight into the Bluffton real estate market.
The economic backdrop
Photo courtesy of UnsplashThe U.S. housing market has been supercharged the past two years. Many U.S. cities have experienced soaring real estate prices along with tightening inventories. With economic uncertainty in the air, many home seekers, homeowners, and real estate investors are anxious to better understand the market direction.
Experienced realtors have seen many ups and downs in the markets over time. Fortunately, the real estate market has a long track record, and it is almost universally agreed that real estate is a sound long-term investment. Look at the CoreLogic Case-Shiller Home Price Index for a good window into the real estate market’s price growth over time. While a long-term view shows more ups and downs, the general upward movement of the market remains intact over time. Although general economic figures such as inflation and GDP can leave current market participants with a great degree of uncertainty, real estate investors should focus on the big picture. Real estate is a resilient market that has always bounced back.
If you are looking to purchase a home in Bluffton, do not be discouraged by the recent upward price movement and inventory decline that has generally plagued the U.S. market in recent years. There are signs that the market is rebalancing. As this page from the Forbes Advisor shows, mortgage rates have been gradually rising since late 2021. While this may at first appear disadvantageous for buyers, rising mortgage rates may be necessary to cool the market sufficiently so that the next wave of real estate investors can enter. It is also important to know that 2022 mortgage rates are historically low, as shown in this long-term 30-year fixed rate mortgage chart from the St. Louis Federal Reserve. Rising mortgage rates could keep price levels from rising so rapidly, yet rates are not so high as to be prohibitive to most buyers.
The local and regional market
By examining a few pertinent data points, we can get a better sense of where the Bluffton market sits. Bluffton real estate has been no exception to the generally hot and competitive nature of real estate in recent years. According to data from the St. Louis Federal Reserve, housing inventory in the metropolitan area that includes Bluffton saw a rapid decline beginning in 2020, following several years of relative stability. While 2022 has seen a modest rebound, inventory levels are still below normal. This and other data points imply a seller’s market in Bluffton. As such, it may be a reasonably good time to list your Bluffton real estate for sale if you are a local homeowner.
Not all data points suggest extreme market conditions in Bluffton. Looking at the National Association of Realtors’ (NAR) Housing Shortage Tracker map, you can quickly see the housing supply in the U.S. Unfortunately, data for Bluffton specifically is not included, but the map shows that the entire surrounding area in South Carolina — as well as North Carolina and Georgia — have a “sufficient supply.” This particular metric is not a gauge of housing inventory directly; rather, it is based on a comparison of the ratio between job creation and new housing permits within a given area. The conclusion of a sufficient supply rests on the underlying presumption that new construction should keep pace with job growth to maintain a stable market. Of course, only a portion of the homes on the market are new construction, so this is only one small window into the state of the market. Nevertheless, this suggests that, hot though it may be, Bluffton is not the currently hottest market.
Derived from NAR data, this chart of “market hotness” shows the local market cooling slightly in 2022 after two years of increasing hotness. Note that a lower score indicates a hotter market relative to other areas. The word “hot” in this case is a real-estate market term that describes the intensity of demand for homes relative to supply. Make no mistake, the market is still considered hot relative to historical norms because there are still buyers eager to find homes in the Bluffton area. However, it appears that prospective homebuyers in Bluffton are finding some relief based on the current trend’s direction.
The bottom line
Like other markets, the real estate market is always subject to change. In Bluffton and across the U.S., the market is constantly in flux. The available data indicates that the Bluffton market is competitive but still offers reasonable opportunities to buyers and sellers alike. Surprises are always possible because no one can foretell the market’s direction with absolute accuracy. While the information above provides a general reference for the market, it is worth taking all market information with a grain of salt due to the complexity of the economy in general and the housing market specifically. Technical analysis of the market should inform your decisions, not make them for you. If you’re interested in purchasing or selling a home in the Bluffton area, your personal goals and incentives should take precedence over any market data.
Most important in the process of purchasing real estate is seeking help from a qualified local realtor who knows the area well. Anthony & Co. is a top-notch real estate firm serving the Bluffton area. Anthony and his expert team can give you firsthand and real-time insights into the Bluffton housing market, and they will professionally handle your real estate transaction. Interested buyers can view the team’s portfolio or use their home search tool to learn more. Contact Anthony & Co. when you are ready to take a confident step forward in the Bluffton, South Carolina, real estate market.
*Header photo courtesy of Shutterstock
