News Summary
The housing market in Columbia, SC, is grappling with unprecedented challenges as home prices and mortgage rates continue to rise. With the mortgage rate climbing to 6.75%, potential buyers are facing increased monthly payments and affordability concerns. Despite a modest growth in typical home values nationwide, the Columbia area shows significant disparities in home prices, creating a tight market where demand exceeds supply. Experts predict home values may increase further, presenting a complex environment for prospective homeowners navigating today’s real estate landscape.
Columbia, SC Faces Rising Home Prices and Mortgage Rates
Homeownership continues to be a significant financial investment for residents in Columbia, SC, as the metro area deals with record-high home prices and increasing mortgage rates, severely challenging affordability for prospective buyers.
As of July 17, 2023, the national mortgage rate has reached 6.75%, placing additional pressure on potential homeowners as monthly payments rise. Recent statistics show that the typical home value in the U.S. stands at $367,369, reflecting a modest increase of 0.2% from the previous year. These rising costs contribute to the growing difficulty for buyers entering the housing market.
Home Affordability Challenges
The Columbia metro area encompasses 36 cities and towns, where home values have seen significant increases, although some areas are more expensive than others. A list compiled using Zillow data reveals notable home values within the region, some of which include:
- Home value: $145,726 – 1-year price change: -3.0%, 5-year price change: +21.2%
- Home value: $145,858 – 1-year price change: -16.0%, 5-year price change: N/A
- Home value: $155,801 – 1-year price change: -3.3%, 5-year price change: +29.4%
- Home value: $184,142 – 1-year price change: +1.2%, 5-year price change: +52.7%
- Home value: $206,901 – 1-year price change: +2.1%, 5-year price change: +55.1%
- Home value: $220,673 – 1-year price change: +2.9%, 5-year price change: +53.8%
- Home value: $246,345 – 1-year price change: -0.2%, 5-year price change: +50.2%
- Home value: $325,277 – 1-year price change: +5,319 (+1.7%), 5-year price change: +92,738 (+39.9%)
The combination of high home prices and elevated mortgage rates creates a challenging environment for buyers. In 2024, Columbia recorded 13,152 homes sold, marking a 3.1% increase from 2023. During this period, the median home sale price increased from $269,900 in 2023 to $272,685 in 2024, indicating a trend of ongoing price growth despite affordability concerns.
Market Dynamics and Future Predictions
The average time homes remained on the market increased notably from 39 days in 2023 to 45 days in 2024. Low inventory continues to be an obstacle, as many homeowners are hesitant to sell due to locked-in mortgage rates that are comparatively lower than current rates and high new home prices. This has resulted in a tight market where demand continues to outstrip supply.
Experts predict a potential uptick in existing home sales and moderate price growth in 2025, heavily influenced by future mortgage rates. Despite rising prices, Columbia’s housing market remains relatively attractive compared to pricier neighboring markets like Charleston and Greenville. This competitive edge might continue to draw interest from out-of-state buyers, ensuring a unique position for local sellers.
Outlook for Home Values
Looking ahead, predictions indicate that home values in the Columbia metro area could rise by 2.5% from January 2025 to January 2026. As home prices and mortgage costs continue to influence the market dynamics, prospective homebuyers will need to navigate these challenges carefully to make informed decisions.
Columbia’s evolving housing market reflects broader trends across the U.S., with affordability issues posing ongoing challenges as potential buyers seek to invest in homes amid rising prices and mortgage rates.
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Additional Resources
- Tribune Ledger News: Most Expensive Homes in Columbia Metro Area
- Nora Dare Real Estate: Columbia SC Real Estate Market
- Columbia Tribune: Boone County Homes for Sale
- Stacker: Fastest Growing Home Prices in South Carolina
- Columbia Metro: 2025 State of the Market
- Wikipedia: Real Estate in the United States
- Google Search: Columbia SC Housing Market
- Google Scholar: Columbia SC Real Estate
- Encyclopedia Britannica: Real Estate
- Google News: Columbia SC Home Prices
Author: STAFF HERE Chapin
CHAPIN STAFF WRITER The CHAPIN STAFF WRITER represents the experienced team at HEREchapin.com, your go-to source for actionable local news and information in Chapin, Lexington County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Chapin Christmas Parade, Fourth of July Celebration, and the Chapin Fall Festival. Our coverage extends to key organizations like the Chapin Chamber of Commerce and the Lexington School District One, plus leading businesses in retail and recreation that power the local economy such as Lake Murray Tourism and the Chapin Visitor Information. As part of the broader HERE network, including HEREaiken.com, HEREbeaufort.com, HEREchapin.com, HEREcharleston.com, HEREclinton.com, HEREcolumbia.com, HEREgeorgetown.com, HEREgreenwood.com, HEREgreenville.com, HEREhiltonhead.com, HEREirmo.com, HEREmyrtlebeach.com, HEREnewberry.com, HERErockhill.com, HEREspartanburg.com, HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, and HEREsanantonio.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
