Market Stats May 2025

May 2025 Local Housing Data:

For our local Spartanburg market:

Compared to  May 2024,

there was another double digit increase in closed sales by 10.6%,

a 18.3% increase in inventory,

Median sales price has slid by -2.2%,

and days on market increasing slightly to 39 days. (1)

I want to focus on median sales price this month as we’re seeing our first episodes of negative numbers…

Inventory is picking up speed and prices are… falling, for once?

For some, seeing a slight dip in the sales prices can be alarming. For those who lived through the 2008 housing crises, it’s certainly something we don’t want to live through again. So I want to bring some ease to those who may be in question…

Keep in mind that real estate is an investment, and just as stocks and bonds in your 401K, their values can adjust and fluctuate. In fact, any time you get an appraisal, the value can change based on the recent sales that happen to occur within the last 6 - 12 months of you selling your own home- the recent comparables. If you get two appraisers to complete an appraisal on your home, there’s a good chance they don’t get get the same value. Your mortgage rate offerings fluctuate minute by minute.

Everyone needs a home to live in, so generally, real estate is an appreciating asset growing in value. In a stable market, we generally see appreciation of around 3% which has historically kept just ahead of inflation.

The gangbuster years of 2019 - 2022 really caused some volatility to the housing market, pushing funds to more rural markets. So locally, pricing has generally skyrocketed. When I first got in this business (2015), the median home sale price was $126,250. (2) With the press of general economic inflation as well as inflated mortgage rates, what I see, is a much needed “cooling” of the market. Yes we always want to see our assets grown to maximize our profit as a seller, but as many have seen in trying to sell AND buy in the last couple of years, you also want favorable conditions to be able to buy in. Between a rock and a hard place.

“slower home price growth alongside rising inventory…is subtly shifting the market in favor of buyers.” (3)

According to Forbes in a late May article, while our housing inventory has seen some nice increases, it’s still well below pre-pandemic levels.  Forbes goes on to state, in order for there to be a housing market recovery: inventory must increase, and rates must fall. (3)

According to Freddie Mac, mortgage rates have remained stable since April, fluctuating just 15 basis points to date. Current rates sit at 6.77% for a 30-Yr Fixed with our 10 year highest rate on November 2, 2023 at 7.76% and our 10 Year low July 29, 2021 at 2.80%. (4)

Let’s also not forget, the primary issue we had in 2008 was predatory lending practices; essentially, lender's were handing out loans to people who didn’t have the financial dec to support it. This November 2008 Brookings Article (5) takes a deep dive into several factors that brought us to the actual housing crises. Today’s pre-approval process is anything but lackadaisical, with lenders generally wanting to see 2 years tax returns, 3 months of bank statements, and your last months pay stubs just to get started. If you use Venmo - be ready to provide explanations.

So truly, in my professional opinion, we are not on track for another market crash at this time, but merely “cooling” which will allow many of you wonderful buyers to find some comfort in sticking your toe back out into the buying waters.

Published July 1, 2025, Monthly Newsletter

Felicia A. Page

Sources

(1)Spartanburg Association of Realors, Monthly Indictors, May 2025 https://scr.stats.showingtime.com/docs/mmi/x/MarketActivityfortheSpartanburgAssociationofREALTORS®?src=page

(2) Spartanburg Association of Realtors, Monthly Indicators, January 2015 https://scr.stats.showingtime.com/docs/mmi/2015-01/x/MarketActivityfortheSpartanburgAssociationofREALTORS®?src=page

(3) Forbes: Housing Market Predictions for 2025: When will home prices drop?, May 20, 2025 https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/

(4) Freddie Mac: Mortgage Rates Decrease, June 26, 2025 https://www.freddiemac.com/pmms

(5) Brookings: Fixing Finance Series - Paper 3, November 2008 https://www.brookings.edu/wp-content/uploads/2016/06/11_origins_crisis_baily_litan.pdf