Market Update October 2024: How the Election Outcome Could Impact the Charleston Real Estate Market
November has been an exciting month in more ways than one! The election is now behind us, and if you’re anything like me, you’re probably wondering how the upcoming changes in government will impact the real estate market. Today, we’ll cover the latest monthly market trends in Charleston and its surrounding cities such as Summerville. We’ll also explore what, if any, potential shifts might be on the horizon for real estate as a result of the recent presidential election. Let’s dive in!
High-Level Market Overview: Months of Supply
Let’s start with a key indicator: months of supply, which measures how long it would take for the current housing inventory to sell. In October, our months of supply ranged from 2.3 to 3.1 months. Since a balanced market typically has around 4-6 months of supply, this number shows we’re still in a seller's market. However, we’ve seen this number gradually approach 4 months over the past 6-7 months, indicating a slow shift toward balance. While October’s numbers were fairly consistent with last month, the upward trend is something to keep an eye on.
Stability in Median Home Prices
October brought stability to median home prices across the Charleston area. Dorchester and Berkeley Counties saw little to no change, while Charleston County showed a slight dip of about $25,000. That’s not too unusual—Charleston tends to have more price fluctuations compared to neighboring counties. Over the past year, Charleston County has seen a 6% increase in home prices, whereas Berkeley and Dorchester Counties have remained steady. Overall, the growth we’ve seen reflects a healthy market; a significant decrease would be more concerning, which thankfully, we have not observed.
List-to-Sale Price Ratio
The list-to-sale price ratio for October ranged from 95.4% to 96.8%. This ratio tells us how much a home sells for relative to its original list price, and we’ve noticed a slight decline. Last month, Charleston County dipped below 96%, and this trend continued across the whole area in October. Although this remains a solid figure for sellers, some may find it slightly lower than expectations set during the peak times of bidding wars and above-list sales. This evolving trend may reflect more balanced buyer-seller dynamics.
Days on Market: What to Expect for Your Listing
The days on market (DOM) metric, which shows how long it takes for a home to go under contract, continues to edge up. In October, homes took between 39 and 47 days to sell, with Charleston and the greater Summerville area averaging 42 days. Berkeley County saw the longest DOM at 47 days, while Dorchester came in at 39. Looking at the median, DOM sits closer to 20 days across all areas, meaning that well-priced homes in desirable areas could go under contract in less than a month. For most sellers, however, an expectation of 30-40 days is reasonable.
Interest Rates: Small Increase in October
Interest rates saw a slight increase in October, ranging from 5.77% to 7.02%, depending on loan type and qualifications. FHA loans remain the most favorable, followed by VA loans and conventional loans. Remember, interest rates vary based on loan conditions, incentives, and borrower qualifications. Although we haven’t seen the decrease we’d hoped for, rates are something we’ll continue to monitor into the new year and under the new administration.
Market Trends and Seasonal Influences
Overall, October’s real estate market in Charleston showed stability. We’re seeing slow growth in inventory (reflected in months of supply) and a slight increase in DOM, likely due to typical seasonal patterns as we move into colder months. This seasonal fluctuation is common, and the numbers are comparable to those from last year.
Election Impact on the Real Estate Market: What to Expect?
Now, onto the big question: how will the election affect the real estate market? Predicting this is challenging, as there are numerous factors and policy changes at play. While we could speculate on possible outcomes, the prudent approach is to wait and see which policies are actually implemented.
One issue we can discuss is affordability. With a low inventory of homes available nationwide, housing affordability has become a critical concern. This benefits current homeowners whose property values have increased, but it poses challenges for first-time buyers and investors. While it’s unlikely that immediate policy changes will resolve the inventory issue, upcoming economic measures may have a long-term impact.
Looking Ahead: Stay Updated with Charleston Real Estate Insights
That wraps up our October market review! Be sure to check back next month for November’s update and to keep a pulse on how Charleston’s real estate landscape is evolving as we head into 2025. See you next month!
