June 2024 Charleston Area Real Estate Market Update
Hey everyone! I hope you all enjoyed a fantastic 4th of July holiday last week. After taking a few days off, we're back with a quick update on the latest real estate market trends from June 2024. Whether you're a homeowner or a potential buyer, staying informed about real estate trends is crucial. For homeowners, it helps track and estimate your home’s value. For buyers, understanding the current market can give you an edge and set realistic expectations. So, let’s dive into the details.
High-Level Market Overview: Months of Supply
First up, let's look at the months of supply, a key indicator of market health. Months of supply measures how long it would take for all houses currently on the market to sell. A balanced market typically has a months of supply value between 4 and 6 months. When inventory is low (less than 4 months), it signals a seller's market with rising prices and high competition. Conversely, high inventory (more than 6 months) indicates a buyer's market, with less competition and falling prices.
For the past several months, the months of supply in most areas around Charleston have hovered around 2 months, with little change. However, over the last 6 months, there's been a slight uptick in supply, suggesting a small increase in inventory. This could be due to the abundant new construction in the Charleston and Summerville areas, more homeowners selling, or typical seasonal fluctuations with more homes listed in summer. Although this range is still between 2.2 to 2.5 months, it’s not yet significant enough to shift towards a balanced market, but it’s something we’ll continue to monitor.
Average Home Prices
Moving on to average home prices, we’ve seen minimal change since last month. In Dorchester County, Berkeley County, and the greater Summerville area, sale prices have changed by 1% or less. Charleston County experienced a more notable decrease of around 2%. However, this is likely a correction after a significant and unexpected rise in prices a few months ago. Overall, home prices remain stable, and we don’t foresee any significant drops in the near future.
List to Sale Price Ratio
The list to sale price ratio remains high, in the 97th percentile across all tri-county areas. This statistic indicates that homes are selling for close to their list price. As we are still in a seller’s market, buyers can expect to pay near the listed price, making deals hard to come by.
Days on Market
In June, the average time it took for homes to go under contract in the greater Summerville area was 39 days, down from 40 days in May. Charleston and Dorchester counties saw similar slight decreases, while Berkeley County saw a small increase. Overall, days on market decreased for the entire area, reflecting the busy real estate season.
Interest Rates
Current interest rates range from 6.42% to 7.17%, depending on the loan program and buyer qualifications. These rates are consistent with last month’s numbers. However, remember that interest rates are variable and influenced by many factors. The exact rate you get will depend on your loan type, terms and conditions, incentives or buydown options, and your qualifications as a borrower, such as credit score and debt-to-income ratio.
Market Trends Insight
Looking at the data as a whole, we might be seeing slightly higher inventory levels, but we're still far from a shift to a buyer’s market. Prices remain high and stable, and demand for our area continues. With an election coming up later this year, it will be interesting to see if and how the market changes. We’ll keep you updated!
Final Thoughts
If you’re on the fence about buying or selling, let’s chat! Numbers and headlines can be helpful, but they don’t tell the whole story. We can provide personalized insight to help you make the best decision for your situation and goals. Kevin and I are always available via text or phone, and our contact information is all over this website! See you next month!
