Welcome everyone to another edition of
the Selling Greenville podcast I am your
host as always Stan McCune realtor here in
Greenville South Carolina and I'm really
excited about this episode we're going
to be talking about specific
submarket sub regions within the upstate
mostly within Greenville but generally
within the upstate and looking at
appreciation there's a lot of
misnomers when it comes to appreciation
I've s seen some people on Facebook
talking about how real estate isn't a
good investment because it basically
just appreciates at the rate of
inflation and there's a lot of misnomers
like that that's out there obviously
different markets respond differently in
terms of of how real estate appreciates
and value but we're going to be digging
into the numbers on on how the
Greenville Market as a whole the upstate
as a whole appreciates and then specific
regions how specific regions are
appreciating both over the past 10 years
and then over the past three years so
I'm really excited to talk about this we
got a lot of information to cover in a
short period of time before we Dive
Right into all of that just a couple of
housekeeping things and then we can can
get into the information that you all
want to hear first off if you're
listening to this podcast you like it I
would appreciate any reviews any ratings
that you can give us if you could
subscribe or download the podcast that
all helps us get it out there get it out
to the masses let people know about us
as always and then if you need to
contact me for anything if you need a
realtor you know someone that needs a
realtor you just want to sit down for
coffee once we're allowed to do that
again or whatever it might be please
feel free to reach out to me my contact
information is all there in the show
notes
you can always text me call me email
me all that information is in the show
notes which you can look at on your
phone or on your computer wherever
you're listening to this and and
again I'm available to talk whenever you
want to talk market and what type of
appreciation that we can expect to see
in our market now let me clarify a few
things before we just kind of jump into
the data this data is courtesy of the
greater Greenville Association of
Realtors they publish charts every
month and these charts are what I
have gotten this data from now what we
have in in the upstate is we have
these specific Market regions and they
are given number codes and every listing
is required to put that number code in
and some of these areas that these Co
numbers refer to don't make a whole lot
of sense so there's a number code code
specifically for just the very narrow
part of downtown Greenville there's one
that covers kind of like the Five Forks
area but it only covers the northern
part of Five Forks doesn't cover the
southern part of Five Forks some of
these are a little out ofd where they
split it they kind of Drew it based on
Street lines and so I'm going to try
to explain to you what these different
regions are and and kind of help you to
visualize where we're talking about but
understand that this is the data that
I'm working with also this data is
looking at the median sales price so
just as a reminder for those of you
that didn't take statistics at at any
point in time which I did not so I have
to remind myself of this median is
kind of like the middle number in a
sequence so if you have you know 1 2 3 4
5 6 7 the middle
number in there which I guess would
be four right four would be the median
number if you're I believe off the top
of my head if you're looking at the
sequence 1 2 3 4 5 6 7 so it's not the
average but it usually ends up being
pretty close to the average so what I've
done is I've taken the median sales
prices from 10 years
ago and also the median sales prices
from 3 years ago and compared that to
what the median sales price most
recently is according to the data from
the greater Greenville Association of
Realtors and we're going to see how
these different areas appreciate over
time but for starters you need to be
asking yourself the question question
that I asked when I first started this
is what was the average what is
happening kind of Market wide in the
upstate what can we expect how does this
compare to for instance the inflation
rates in the United States because
obviously every year our currency
is devalued our money is devalued we
call that inflation and so everything
gets a little bit more expensive
including real estate real estate is
impacted by inflation but a good
investment will outpace the rate of
inflation so let's talk about the a
average and again I'm not an economics
major and I'm not a financial adviser so
just getting that out there speak to
your financial adviser to get more
specifics on what you should do with
your money and how you should invest
that this is just for informational
purposes only all right Greenville
the upstate as a whole by the way I'm
I'm looking again at the greater
Greenville Association realer statistics
this does include data from Anderson
Spartanburg Laurens some some of
these other counties but it it's mostly
focused on Greenville so just keep that
in mind as well okay what is the upstate
Market as a
whole doing as far as appreciation goes
the past 10 years according to the data
that I received from the
GJ the average rate of appreciation has
been about
4.76% per year for the past 10 years if
you you go back the past three years so
we so how are things are things getting
faster are they getting slower so the
past 10 years the average has been 4.76
what about the past three years the past
three years has been
6.1% so we're seeing in general the
median sales price going up by a a
much larger percentage and that's
impressive too because the way these
numbers work the percentages are more
impactful it's kind of like compounded
interest every year this this is the the
percentage of of increase every
single year so
6% increase on a house that is worth
180,000 is more meaningful if that's 6%
later down the road on a $200,000 valued
house in other words the as we go on and
on the percent increase in appreciation
actually impacts the bottom line more
because it's on a higher number 6% of
200,000 is higher than 6% of
180,000 so how does that compare to
the inflation rates again I'm not an
economic major or anything like that but
my understanding is that the inflation
in our country has averaged about 2%
increase per year so does that mean that
we're doing well well it means that
market wide the past 3 years we have
tripled that you can expect to get about
4% appreciation at least based on the
median price points it's about 4% higher
than what the inflation rates have been
that's not bad you compare that to for
instance the stock market my
understanding is that that that's not a
bad number at all but that's just the
averages what are the markets that are
doing the best all right so here's where
it gets really interesting there weren't
any markets that averaged over
20% appreciation based on my
methodology year on year but there is
one that came really
close and it's the area and and and this
should not come as much surprise to you
but it's the area east of Blue Ridge
Drive but West of 276 that basically
comprises West Greenville Brandon Mill
City View and parts of
Sansui and that market over the past 10
years has seen the median price point go
up on average per year
19.6% now the past three years that's
gone up even more now it's it's nearly
26% the past 3 years based on the data
that that I analyzed so if you want to
invest in property and you want to bank
appreciation I mean
26% average year on-ear now of of course
there's a lot that goes into that I'm
not saying that your real estate is
going to appreciate 26% year onye in
those areas but that is what the market
in that West Greenville Brandon Mill
City View Sans suuchi area has seen
prices have gone up on average the
mediprices that much now some of this
can be skewed by new construction
obviously we've seen some of those Mills
renovated and turned into kind of
higher-end condo type of type of living
that can kind of skew the numbers a
little bit again it's it's not exactly
perfect with in terms of appreciation
but that is a really startling number
one way or the other not very far behind
it though
at nearly
15% is the Denine Judson welcome area so
basically east of White Horse Road kind
of near the hospital systems all of that
that area has appreciated the past 10
years or we've we've seen the medium
price point go up I have to be careful
how I say this before I get in trouble
someone telling me I'm giving off bad
information okay the median price point
has gone
up for the past 10 years on average
14.87% again that is an unbelievable
number if you're making 14.87% on any
investment you should be very happy and
hopefully some of you have have seen
that happen on some of your real estate
I have seen that happen on on some of my
real estate and Investments that I've
made and I've been very happy with that
the past three three years though we
have seen that area jump the median
price point by
31.
73% per year the past three years and
that is the highest number on this
entire on this entire list that I
came up with and so really the Denine
Judson welcome area that area right now
is seeing some some tremendous
appreciation at least that's what it
appears to be and what's interesting is
that that area has had some new
construction but a lot of that is is
just older homes being renovated being
being flipped being sold for a lot
more and so I'm very impressed by those
numbers from that area and that's been
an area that I've personally been
targeting and and having my investor
clients Target for a while now
now just below that is is an an area
that is actually a little bit surprising
so so this one the mediprice point
has gone up
13.35% year onye for the past 10
years and and the past three years it's
gone up
22.23 per. and this is the area down
there by by Donald kind of Donaldson
Center area and south of that almost to
the point there's there's a little point
where Anderson County Abbyville County
Greenville County and lawren County meet
and just it's just a little bit
Northeast of there if you drew a line
from that area all the way up kind of
past the Donaldson Center area that is
the area that we're talking about here
so kind of a unique area but it was
It was obviously it's very convenient
and a lot of ways to Downtown Greenville
and that's a a consistent theme we see
here the areas around Downtown
Greenville experienced the most
appreciation but Donaldson Center
area has kind of been
underappreciated actually my first house
flip I did down in that area and I
bought that house for
$38,000 and it didn't need that much
work I I flipped it and sold it for
if I remember correctly for $
83,000 I I mean those numbers are like
nothing this was a a nice house well
guess what that that same house you
would get nothing close to those types
of numbers for I mean we're talking
about it would be much much higher that
area has seen the mediprice point the
past three years go up 22.23 per. that's
that's very impressive very
interesting the next on the list is just
west of that area between Highway 25
on the East and the Saluda River on the
west so we're including what
would be Gant if you're familiar with
that you can see that on on Google Maps
it it specifies where Gant is some parts
of pedmont and
poer and and this one does go South all
the way this area that we're talking
about that the the greater Greenville
Association Realtors has identified goes
all the way South down to that point
where all those counties that I
mentioned earlier meet that area has
seen seen the past 10 years
10.31% increase on the mediprice
point and the past 3 years
13.3% so again very
excellent growth in that area still
in double digits for the past 10 years
13.3 3% for the past three years
and and that's an area that if you're
if you're looking to invest again you
want to Banks some appreciation that's
an area worth
considering the next on the list is an
interesting one because this is the
first one that has a higher appreciation
over the past 10 years year-on-year
average in terms of the mediprice
point versus the past the median price
point of the past three years and and
again not necessarily appreciation but
just the the the fluctuation of the
mediprice point so this area I
would kind of called the ston bridge
area it's between White Horse Road and
between the Saluda River on the East
and the west and then between highways
uh
123 and Interstate 85 so that's kind of
the area that we're talking about so
that area has seen over the past 10
years the median price point go up per
year by
99.6% but the past 3 years
7.72% well that's pretty close to the
average for the entire entire Upstate so
even though it's close to a 10% increase
year on-year for the past 10 years we're
seeing that slowed down the past three
years so that's interesting I'd have
to do a lot more digging to to try to
figure out and I don't want to speculate
I have some speculation I don't want to
speculate why but that's something to
consider that area appears to be slowing
down a little
bit now the next area on the list is
is one that is also unique from the
standpoint of that it has higher home
prices in general so it's an area
that currently the median sales price is
pretty close to $300,000 so most of
these that we've been looking at the
median sales prices have been kind of
topping out in in the low to mid2 200s
or maybe the even the high 100,00
thousands this is an area that is
much much higher and the area that I'm
talking about is the Overbrook area you
might even include what I I've heard
some refer to as Midtown Greenville all
the way out to Pleasantburg Drive
that area for the past 10 years has seen
the median price point go up 99.22%
per year and so far outpacing
inflation and and that's an area that in
general we haven't seen a ton of new
construction so I I think that a lot of
that we can confidently say is
appreciation is people adding value
flipping houses doing that type of thing
and the past three years it's gone up
13.19% so if you're looking for an area
that is really a a great area to
raise a
family an area that is convenient to
everything but isn't as expensive as
Downtown Greenville isn't necessary as
transitional as some of these other
areas that we've mentioned Overbrook
Midtown Greenville that is the area that
you're that that we're seeing the
average and median sales prices
appreciate and go up year onye really
tremendously the past three years that
number has gone up
13.19% per year there's one other
that is is really interesting well
there there's there's two others in the
good category that I wanted to discuss
that are interesting and then one more
in or kind of a general area that I
want to mention is not doing so well all
right so one that's interesting that
has a
disproportionate 10e versus
three-year we'll just call it split 10
year versus threeyear
split is the nickl toown Greenville
Tech Greenville Country Club area and
this is the reverse of what we talked
about before with the saon bridge area
but the nickl toown Greenville Tech
Greenville Country Club area the median
price point from the data that I
looked at has gone up year on year
for the past 10 years about
7.57% so that's good that's steady
that's out
outpacing almost by double the
average Market wide but the past three
years has gone up
16.13% and that would make that good for
I believe that's the fourth highest on
our list for the past three years
that's not a huge surprise nickel toown
has really seen a a big revitalization
in a lot of ways obviously Greenville
Country Club that's a nice area around
there so there's been a lot of
investor money going into that area the
past few years and that's re being
reflected on on those numbers so
those are a few areas to consider if
you're looking for a an area that you
want to invest in or that you want to
live in and Bank some appreciation those
are some great areas
now you might have noticed that we I
didn't really discuss any of the
traditional you know I don't I don't
know what to call it the the traditional
middle class Family
areas
unfortunately there is generally
speaking a need be beyond the that
Overbrook area that I mentioned although
you have to pay to get there but
generally you do have to be in a little
bit more of a transitional neighborhood
in order to achieve that appreciation
the closer you get to Urban centers
which in in our case the closest thing
we have to an urban C Center is Downtown
Greenville the closer you get to
there the more transitional things
can be one street can be dramatically
different from another but that is where
we see the most appreciation because
Downtown Greenville I the way I see it
is just influencing those other areas in
a positive way in so many different ways
but I will mention one area and I need
to hedge this but there is one area that
has seen in the past three years some
very good appreciation that would be
considered more of a an area that
that families and that someone looking
for a good school district Etc would be
interested in moving to and that is the
five fors area now I alluded to this
earlier which is is that the way the
Association of Realtors splits up these
areas it doesn't include all of Five
Forks so I would call this the northern
Five Forks area but we're talking about
above Woodruff Road but below
Interstate 85 and that area over the
past 10 years hasn't
seen that tremendous increase on the
mediprice point over the past 10
years we're only talking about
3.1% but those gains have been driven
primarily the past three years where
we've seen that increase about 10%
10.06% according to the numbers that I'm
looking
at so that's a very interesting thing
to consider now that might not be
appreciation and here's why that might
be driven by new construction often
times new construction will cost more
than old construction it's not always
the case but Five Forks we know has
had a ton of new construction the past
few years and so it's possible that
those gains are are mostly driven by the
new construction that said when you
have new
construction increasing prices in an
area that does help the old construction
as well so if you're looking for an area
with with solid school districts with
newer construction you know with a lot
of things to do as a family not
necessarily near downtown Greenville
Five Forks might be an area worth
considering the numbers are looking good
the past few years in Five
Forks but what about on the bad side of
things I'm not going to spend a whole
lot of time on this but there was a very
consistent Trend there's actually a few
markets that have basically the past
3
years not even kept up with inflation or
barely kept up with inflation
assuming again that I'm correct that
inflation is about roughly 2% per year
and this is the well the worst of the
worst is the downtown Anderson area
just north of I Ed
5 towards and and with the border
from downtown Anderson to the Saluda
river that area the past 10 years has
seen a
3.47% increase on the mediprice point
but the past three years
75% now that is not something that you
want to see at all and that's a that's a
very discouraging number for for the
and and area unfortunately and and I
have flipped houses in Anderson I think
that that there is a way to to do it
down there but you need to keep in
mind that that that area is not seeing
the type of increase on home prices that
we're seeing in Greenville County
there were two other sub regions in
Anderson that
also were kind of in a similar boat
that downtown Anderson was was the worst
one but also there was a section that
was the majority of Anderson County that
that saw over 10 years 4.14% increase on
the mediprice point past three years
2.94% so that's that's barely above if
above appre inflation and then the
West Anderson area similarly
5.24% over the past 10 years increase on
the mediprice point and the past
three years 3.57%
so if if we take these numbers to just
be straight appreciation of real estate
which they aren't I've already explain
that but if we were to take that
those those would not be good numbers
and and those are reasons to pause when
it comes to purchasing real estate in
Anderson
again I have done it before I help
clients down in that area there are is a
lot more to consider when you're buying
a home than strict
appreciation but when we're talking
about what the market is doing it it
appears that the market down there is
still kind of lagging behind
Greenville in a in a lot of different
ways but overall the
upstate is doing very very well
overall I think that you can be
confident
that the real estate in our area is
appreciation is appreciating
particularly down and near downtown
Greenville and all around downtown
Greenville those areas all around it
little bit of of caution for that ston
bridge area but even so the past three
years being like I said
7.72% in that area that's that's still
quite good right if if we're comparing
that to the inflation rates if we're
comparing that to a lot of other
Investments again I'm not an expert
in that stuff but in my opinion that
that seems pretty good but really the
the West Greenville Brandon Mill City
View Sansui area Denine Judson welcome
area and even some of the The
Donaldson Center is area those are the
areas that are really seeing some some
big changes happening in terms of the
sales prices in terms of of what things
are selling for and that's something
that you should consider a lot of people
are buying rental properties in those
areas and what's really nice about
buying a rental property is that you get
well there's there's a lot of good
things from that but you get the cash
flow and then if you purchase in the
right area you also get appreciation and
I don't do my own taxes but my
accountant has let me know that there
are some tax benefits that a good
accountant can help you with for rental
properties as well you do have to
factor in that in these areas near
downtown
Greenville property taxes oftentimes
will be higher so that is a
consideration as well as you're
considering investing in some of these
areas but there's a lot of reasons for
optimism and I'm I'm really excited to
see these numbers to see just how well
our Market has done over the past 10
years over the past three years a lot of
people in this area have done very well
investing in real estate and and
that's something that I continue to be
passionate about I currently have 13
rental properties that either my wife
and I own or that I own with some
partners and I'm hoping to be able to
build that portfolio even more these
numbers made me even more confident to
continue to do that and if you have any
questions about a specific area how is a
specific area doing how how are these
median price points impacted in this
area or that area I'd be happy to
discuss that with you if you're
interested in investing in real estate
I'd be happy to discuss some options
there just let me know again my contact
information in the show notes and until
next time stay well
[Music]