Charleston Area Monthly Market Update: May 2024
Are you curious about the current state of the real estate market in the Charleston Tricounty area? You’re in the right place! Welcome to your monthly market update for May 2024. As summertime kicks off, the real estate market often heats up. But do the numbers support a thriving market, or are there unexpected trends? Let’s dive in.
High-Level Market Overview: Months of Supply
In May, the Charleston Tricounty area saw a slight increase in months of supply, ranging from 2 to 2.5 months. This metric indicates how long it would take to sell all homes currently on the market. The uptick in listings with the arrival of summer is a normal seasonal pattern, underscoring that we are still in a solid sellers' market. A balanced market, where neither buyers nor sellers have a distinct advantage, would require 4-6 months of supply. Currently, low inventory levels mean we are far from reaching a buyers' market, defined by over 6 months of supply. Despite ongoing construction, this supply is unlikely to change drastically soon.
Average Home Prices
In the greater Summerville area, the average home price rose slightly to $423,000. Last month, Charleston County saw a significant jump in average home prices, but this month we observed a slight correction, with prices decreasing to $930,000. This is still well above the $800,000 mark from a few months ago, indicating persistent high prices. Berkeley County’s average home price continued its upward trend, now at approximately $532,000. These figures reflect a robust housing market where prices continue to rise.
List-to-Sale Price Ratio
The list-to-sale price ratio remains high, hovering between 96% and 98% across the Tricounty area. Dorchester County recorded the lowest ratio at 96.3%, while Berkeley County topped the chart at 98.6%. This ratio signifies the percentage of the listing price that homes are sold for. For instance, if a home is listed at $500,000, it’s likely to sell for between $481,000 and $493,000. In a sellers' market like this, expect to pay close to the list price when buying a home.
Days on Market
In May, the average time for a home to go under contract in the greater Summerville area was 40 days, a slight decrease from April’s 43 days. Berkeley County saw a more notable drop, from 42 days to 37 days. Charleston County remained steady with the shortest average at 30 days. These numbers indicate a strong market with high demand.
Interest Rates
Last month, interest rates averaged between 6.5% and 7.4%, consistent with previous months. Mortgage rates can vary significantly based on numerous factors, including the type of loan, terms, conditions, incentives, and individual qualifications like credit score and debt-to-income ratio. While these rates are an important metric consumers are interested in, remember they can fluctuate based on your specific situation.
Market Trends Insight
What do these numbers mean for you? If you’ve been waiting for the market or interest rates to drop, you might be missing out. While we saw a minor correction in Charleston County’s home prices, overall prices are still up compared to last year. The Charleston area market continues to show strong growth and stability. Waiting to buy could cost you more in both purchase price and potential equity gains. If you’re considering purchasing a home, reach out to us or one of our trusted mortgage lenders to explore your options.
Conclusion & Call to Action
The real estate market is ever-changing, and while recent numbers have been consistent, that could shift at any moment. That’s why it’s crucial to stay informed. Tune in next month for the latest updates.
As always, our commitment is to provide you with honest insights to help you make informed decisions. If you’re interested in buying, send us a text or email using the contact information below. We’re here to help! In the meantime, feel free to explore our other content, and I’ll be back next month with another update.
Stay tuned and stay informed!
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Kellie Collins with Integrity Home Mortgage
