Charleston Real Estate Market Update: August 2024 Recap
As we step into September, it’s time to look back at how the Charleston real estate market performed in August 2024. From shifting interest rates to the impact of seasonal trends like back-to-school and the upcoming election, several factors are at play. Let’s dive into the numbers and see what’s shaping the market.
Market Overview: Months of Supply
One key metric to assess the real estate market is months of supply—the time it would take for all active listings to sell at the current pace. A balanced market is typically between 4 to 6 months of supply. Anything less than 4 months signals a seller’s market, while over 6 months leans toward a buyer’s market.
In August, the Charleston tri-county area saw little change in months of supply, and ranged from 2.2 to 2.7 months. Charleston County saw the only increase this month in months of supply from 2.5 to 2.7. All other areas including the greater Summerville Area, Dorchester County, and Berkeley County all stayed stable or slightly decreased so change for the entire tri-county area was a wash.
Dip in Average Home Prices
Next up: average home prices. Across the tri-county area, August brought a decrease in home prices. Charleston County saw the most significant drop, with average prices falling from $930,000 in July to $880,000 in August. While that might seem like a large shift, the decrease in median prices was much smaller. With summer winding down and fewer people shopping for homes as fall approaches, it’s not uncommon to see a dip in pricing so this decrease is likely so hopefully this little dip in prices is just a normal seasonal fluctuation.
List-to-Sale Price Ratio
Despite seeing more price reductions in listings, the list-to-sale price ratio is still strong. Across the region, this ratio hovers in the 96th percentile, meaning sellers are still getting close to their asking prices. While this figure has dipped slightly over the past few months, it remains high, signaling that deals well below list price are still rare in this seller-leaning market.
Days on Market
In terms of how quickly homes are selling, the days on market average was 35 days in the greater Summerville area for August. Berkeley County took the longest, with homes staying on the market an average of 44 days, while Dorchester County was the quickest, averaging 30 days. If you’re selling, expect your home to be under contract in roughly a month or possibly a little longer.
Interest Rates: A Silver Lining?
Good news for buyers: interest rates are trending down. At the end of August, rates were between 5.75% and 7.75%, depending on the type of loan and borrower qualifications. FHA loans are seeing the lowest rates, followed by conventional and then VA loans. Even more promising, experts predict rates may continue to drop through the remainder of the year. However, remember that actual rates depend on factors like your credit score, loan type, and more, so individual results may vary.
Key Takeaways and Trends
In summary, August brought a slight dip in both home prices and interest rates, while most other metrics, such as months of supply and days on market, remained stable. As we transition into fall, we typically see a slowdown in transactions, but falling interest rates might entice more buyers to make a move. This could be great for those looking to sell their homes in the next few months, but could also mean more competition for current buyers.
Ready to Make Your Move?
As the market continues to evolve, it might be the perfect time to explore buying or selling a home. Whether you're on the fence or ready to jump in, we’d love to provide tailored insights based on your unique situation. Reach out to us and let’s see how we can help you make the best decision. Stay tuned for next month’s update, and we’ll keep you informed about what’s happening in Charleston’s ever-changing real estate market!
