This article highlights some community stats from 2021 and the real estate outlook for 2022. With 14 yrs of experience in the local market, Team Pogue can help you understand real estate market trends & what to expect. If you have questions about how these trends affect your property or if you are considering a move, please call us.
Sun City Carolina Lakes vs National Trends
The Sun City real estate market performed quite well compared to national averages. According to the National Housing Report, median home prices in the top 51 metropolitan markets are up about 12% YOY and the number of days on the market is down about 8 days.SCCL homes saw an average sales price increase of 15.6% and on average sold in 58 fewer days than last year.
In fact, trends in Sun City Carolina Lakes over the past four years have been impressive. In 2018 the average home was on the market for 114 days compared to just 16 days in 2021. The average sales price of homes in SCCL is $68,000 more than it was in 2018, with $54,000 of that growth in the last year alone.
Sun City Carolina Lakes Home Sales 2021
- The Manor series saw the greatest price improvement with almost 19% avg sales price of $83,000. Summit homes and Villas were close behind with $66,000 and $45,000 avg price improvements which were about 18% each.
- Most of the homes in SCCL sold in just under two weeks, with higher priced Manor Homes taking longer to sell.
- Of the 196 homes sold in the community this year, the majority of sales were Summit series homes. The most popular models were the Surrey Crest (22 homes sold) and the Gray Myst (24 homes sold).
- Basement homes sold at a premium this yr averaging 103% over list price upon sale.
- River Series homes and Villas are selling at a premium of approx $220 per square foot – most likely because they offer attractive entry point pricing for a resort style community such as SCCL.
Real Estate Market Outlook for 2022
During 2021, homebuyer activity has highlighted housing shortages across the US, particularly in the low to mid level price ranges. With supply chain issues and labor shortages, new home construction is still slow and supply has not been available to meet demand. Looking ahead, there is a lot of anticipation for new home construction, but the reality of when homes will be completed is still up in the air. As such, we anticipate that supply shortages will continue this year.
Historically low interest rates are one reason why sellers have not jumped at the opportunity to sell their homes, instead choosing to refinance and locking in rock bottom rates.The Fed has indicated that there will be a slight rise in interest rates this year to combat inflation, but interest rates will remain low compared to historical levels. Higher rates may also contribute to a slowdown in rising home prices, allowing home buyers to remain optimistic about finding homes they can afford. However, experts caution that while we may not see the bidding wars we experienced in 2021, buyers should expect to pay close to asking price. Sellers need a plan before deciding to list their home, and many aren’t eager to enter the competitive market right now. There needs to be an incentive for them to sell.
With prices near all time highs and mortgage rates expected to rise slightly, we expect the housing market to remain strong but the price appreciation to slow. Work flexibility, low interest rates, and limited supply will all contribute toward continued strong demand. We are starting 2022 with plenty of reason to be optimistic about the housing market.
Sources: US News and World Report, Housing Expectations for 2022 and RE/MAX National Housing Report