Charleston Market Conditions
- Low Inventory following fewer new listings and strong demand has led to increased median sales prices for the year 2023
- New Listings across the region are down -16.9% and closed sales -24% YTD 2023
- Lack of Inventory drives Median Sales Prices +7.4% across region YTD 2023 – and in many high-demand areas +12% to +20%
- The market is more in equilibrium between buyers and sellers than previous 3 years. Days on the Market increasing. Contractual language regarding contingencies returning to historical norms. Buyers have the opportunity to see more inventory prior to submitting bids.
- Areas and homes which appeal to buyers relocating for the “Charleston lifestyle” (beach, golf, Southern architecture, boating, etc.) show the highest average price growth. This fact defines our seller and buyer strategies.
- Long-term demand to move to the Charleston region remains significant. Charleston's population is expected to grow by +25% in the next 10 years.
Average sales price within Charleston Peninsula YTD $1.4M, Daniel Island $1.36M, Mount Pleasant $900K and entire MLS Charleston Region $561K. The three areas show price increases of +13% to 18%.
Sales Price growth in beach areas such as Sullivans Island and IOP = +20% and +68% respectively. This shows appeal of 2nd home buyers and the rise of all cash buyers coming into area.
Stark contrast between growth of golf-focused areas (e.g. DI Park at +23% growth) and other areas once again highlights that key-driver of sales price is “lifestyle.”
New builds show price growth +20% over previously owned homes.
Months Supply of Housing Inventory was high in 2020 as sellers took advantage of historic sellers market – not to mention pent-up sales halted from COVID lockdowns
Current Housing Inventory in all of Charleston is low at 1.9 months. While Charleston Peninsula has 3 months of inventory – areas such as Daniel Island and Mount Pleasant only have 1.5 months of inventory. Normal inventory levels = 4 to 6 months
Inventory held low by owners’ desire to hold old low interest mortgages instead of trading them for new mortgages with higher rates.
Inventory expected to remain flat – or possibly decrease in Fall 2023 as the Spring sales cycle concludes
New listings remain low throughout the region. Charleston Peninsula listings down (-29%), Mount Pleasant (-21%), Daniel Island (-38%).
In some high-demand areas such as Daniel Island Park and Sullivan’s Island new listings remain in the single digits.
Homes for Sale and Inventory held low by owners’ desire to hold old low interest mortgages instead of trading them for new mortgages with higher rates (i.e. the “Golden Handcuffs”)
Experts are forecasting that new listings and closed sales will continue to remain close to historic lows through the end of the Spring Market and through the Fall
Inventory expected to remain flat – or possibly decrease in Fall 2023 as the Spring sales cycle concludes.
Key Take-Aways
- Low Housing Inventory and strong demand have led to continued average sales price increases in 2023
- Homes for Sale and Inventory have been held low by owners’ desire to hold their current low interest mortgages instead of trading them for new mortgages with higher rates (i.e. the “Golden Handcuffs”)
- If you are considering selling now is a GREAT time to do so!! Days on market are increasing, but so are sales prices if you market aggressively to the right set of buyers
- Marketing is key to get the lifestyle-focused buyer in front of the property and maximizing the sales price.
- The difference between new home sales and previously owned homes points to value that can be generated by (1) new builds and (2) strategic updates to homes built 2005-2020.
- Buyers need to understand that while market equilibrium has become more balanced, the lack of inventory is driving sales prices. Work with agent with thorough understanding of market and search out possible off-market sales.
- Cash buyers appeal to sellers is strong. If you need a mortgage ”Buy the house, but date the rate” has never been more important.
