July 2024: The Real State of the Charleston Real Estate Market

Aug 14

In the past week or two, you may have come across some sensationalized headlines in the national news about home prices plummeting. The statistics they were throwing around were pretty jaw-dropping, with claims of home prices dropping anywhere from 5% to even close to 20% in some areas. This naturally raised some eyebrows, so I decided to dive deep into the numbers this month to ensure nothing had slipped through the cracks. Should you be paying attention to these headlines, and is the greater Charleston area experiencing similar trends? Let’s find out.

A High-Level Market Overview: Understanding Months of Supply

Let’s start with a high-level overview of the market, focusing on an essential metric: months of supply. This figure represents how long it would take for all houses currently on the market to sell. A balanced market is typically seen when the months of supply are between 4 and 6 months.

Seller’s Market: When inventory is low, months of supply is less than 4 months, leading to higher prices and increased competition.
Buyer’s Market: Conversely, when inventory levels are high, months of supply exceeds 6 months, reducing competition and driving prices down.

So, what’s happening in Charleston? This month’s numbers support what I mentioned last month—months of supply is ticking up, suggesting we might be inching toward a more balanced market. Although the month-to-month change is slight, over the past six months, this number has risen by about half a month. For instance, the entire MLS currently shows around 2.8 months of supply, up from 2.3 six months ago. While we’re still in a seller’s market with a figure in the 2’s, the trend indicates a gradual shift towards balance.

Average Home Prices: Steady or Slipping?

Home prices have remained relatively steady since last month. While Berkeley County and the greater Summerville area saw slight decreases by a couple of thousand dollars, Dorchester and Charleston counties both experienced increases. The most significant rise was in Charleston County, where the average home price jumped nearly $18,000 from last month. Over the past four months, prices in Charleston County have seen some swings, but this month’s numbers suggest a leveling out to an average of around $930,000.

Despite minor month-to-month fluctuations, overall home prices in the Charleston real estate market have increased over the past year. The market seems resilient, and the data supports continued growth, even if the pace has slowed slightly.

List-to-Sale Price Ratio: What You Need to Know

Even though we’ve seen more price reductions on homes recently, the list-to-sale price ratio remains high, particularly in the 96th percentile across all tri-county areas, with Berkeley County leading in the 97th percentile. This statistic tells us the percentage of the list price that a home actually sells for, meaning buyers can still expect to pay close to the list price. Despite a slight market shift, we remain in a seller’s market, and deals on real estate are still hard to come by.

Days on Market: How Long Will It Take to Sell?

If you’re curious about how long it takes properties to sell, the average time in June was 37 days in the greater Summerville area, with similar numbers in Dorchester and Berkeley Counties. Charleston County, however, was the outlier, with an average of just 30 days on the market. So, if you’re selling your home, expect it to take around a month, give or take, to go under contract.

Interest Rates: A Glimmer of Hope?

Interest rates have dropped slightly over the last month, currently averaging around 6.25% to 7.14%, depending on the loan program and buyer qualifications. There’s also chatter that the Federal Reserve might drop rates again in the fall, so fingers crossed for further reductions!

However, a word of caution: Interest rates are highly variable and depend on numerous factors. Your exact rate will be influenced by the type of loan, terms, seller incentives, and your qualifications as a borrower. But if this trend continues, things are looking up for buyers.

Market Trends Insight: Should You Worry About the National Headlines?

So, what’s the takeaway? Despite the doom-and-gloom headlines circulating in the national news, they don’t necessarily apply to our area. The stats in the Charleston area show a steady market, with prices holding firm or increasing over the past year. Interest rates are dipping, boosting buying power, and while inventory is ticking up slightly, it’s helping to stabilize the market and prevent the buying frenzies we saw a couple of years ago.

Only time will tell if our area will experience the same slowing and downturn that other markets across the country are seeing. However, with businesses growing and people still flocking to Charleston, our market remains stable and promising.

Ready to Make a Move? Let’s Talk!

If you’ve been on the fence about buying or selling, let’s chat! While the numbers and headlines are helpful, they shouldn’t be the only factor in your decision. Let us learn about your situation and goals, and we can provide personalized insight to help you make the best decision. Both Kevin and I are always available via text or phone, and our contact information is below. See you next month!