September 2024 Real Estate Market Update
As October rolls in, it’s time for our September 2024 real estate market update for the Charleston Area! Although it’s a bit later than usual this month (it’s been a busy time for us), the numbers have been crunched, and I’ve got all the details for you. Are lower interest rates sticking around? Are home prices on the rise or fall? And what’s the impact on buyers and sellers right now? Let’s dive into the data and see what’s happening in our local real estate market.
Market Overview: Months of Supply
In September, the months of supply ranged between 2.2 and 2.9 months. To break that down, this figure represents how long it would take for all the homes currently on the market to sell if no new listings were added. For a balanced market, this number typically sits between 4 and 6 months, meaning we’re still in a seller’s market. However, the upward trend is undeniable—supply has increased by half a month to a full month over the past six months.
This gradual shift has empowered buyers to be more selective, making it harder to receive over-asking offers as we saw a few years ago. Homes priced fairly are still selling, but the frenzied seller’s market is cooling off, inching us closer to a more balanced market.
Home Prices: A Mixed Bag
Median home prices saw varying changes across counties in our area. While the overall MLS saw a drop of around $13,000, each county showed different trends. Charleston County, the outlier, experienced an increase of about $15,000. Meanwhile, Dorchester and Berkeley counties saw decreases of $14,000 and $23,000, respectively.
The key takeaway here? Home prices remain stable, despite month-to-month fluctuations. Over the last year, we’ve observed a modest 2.5% increase in home values across the MLS. This suggests that the pace of appreciation is leveling off, which is a positive sign for both buyers and sellers.
List-to-Sale Price Ratio
The list-to-sale price ratio for September ranged from 95.8% to 97.2%, meaning homes are selling close to their listing price. This ratio has been slowly rising month over month, indicating that while the market is cooling slightly, sellers are still getting solid offers. If the trend continues, we may see more price reductions as homes take longer to sell. However, buyers can expect to pay near the asking price if the home is priced right.
Days on Market: Patience is Key
The number of days homes sat on the market in September ranged from 37 to 46 days, with Charleston and Dorchester counties seeing the biggest increase of seven days. Berkeley County’s increase was more modest at just two days. Sellers have felt some anxiety when homes don’t sell within the first week, but these numbers reinforce that a 30 to 45-day timeframe is now the norm. If you’re selling, plan accordingly and don’t be alarmed if it takes a little longer to get an offer.
Interest Rates: A Welcome Decline
Interest rates continued their downward trend in September, ranging from 5.6% to 6.4%, depending on the loan program and buyer qualifications. FHA loans had the lowest rates, followed by VA loans and conventional mortgages.
Lower rates are great news for buyers, as they increase purchasing power, and for sellers, as they can help attract more buyers. However, keep in mind that interest rates depend on several factors, including credit scores and loan terms. If rates continue to fall, we could see increased demand, which would support a continued seller’s market.
What’s Ahead for the Real Estate Market?
So, what does all this mean? While we’ve seen a slight dip in prices across most areas, Charleston County remains an outlier with its price increase. The market is still favoring sellers, but the shifts in supply, pricing and days on market signal a trend toward a more balanced environment.
The next few months will be interesting to watch as we approach the holiday season and the upcoming election—both of which historically cause a slowdown in the market. Will dropping interest rates help boost activity? Only time will tell!
Ready to Make a Move?
If you’ve been on the fence about buying or selling, now could be the right time to make your move. Whether you’re looking to capitalize on low interest rates or find your next home, we’re here to help. Reach out to us anytime, and we’ll provide personalized advice to help you navigate today’s market. Stay tuned for next month’s update, and we’ll see you then!
