Daniel Island Real Estate Market Forecast 2023

The Daniel Island real estate market today indicates that home sales will appreciate at slower rates entering 2023, while days on the market and inventory will likely increase, although at different rates for single-family homes and townhouses or condos. Buyers and sellers can expect advantages when planning a home transaction next year. To better understand what’s projected for the area in 2023, here’s what you need to know about current real estate market conditions.

For a quick look at local housing market trends today, review the statistics below, followed by our explanation of these market factors.

Currently, Daniel Island is experiencing cooling trends, visible in decreasing closed sales and increasing inventory. Although condo sales have risen since last year, the low number of sales impacts sales percentages. Meanwhile, inventory for single-family homes has greatly increased. Buyers searching for single-family homes on Daniel Island are experiencing more favorable market conditions.

Sellers listing their homes on Daniel Island today likely feel the benefits of increasing median sales prices. While the average days on the market increased year-over-year, 30 days is still a reasonable time for sellers to sell their houses. Those interested in the market for condos and townhomes in Berkeley County will find many parallels between this market and single-family homes: fewer closed sales, higher median sales prices, more days on the market, and increased inventory.

Those buying or selling Daniel Island real estate in the upcoming year can expect market conditions to continue slowing down. This slowdown may seem stark against the high demand of the past two years, but buyers and sellers shouldn’t worry about Charleston entering a housing bubble. As home showings decrease and active listings increase, home prices will still appreciate, although at slower rates than in the past.

Although inventory is currently on the rise for property types like single-family homes, tight inventory will also impact the housing market entering 2023. The lack of housing overall, and fewer new homes to supplement inventory, will make it difficult for buyers searching for Isle of Palms real estate. Additionally, more competition from new residents interested in the area will keep prices rising. The market in Isle of Palms will likely remain in the sellers’ favor for some time.

The job market across the state also impacts housing demand on Daniel Island. Unemployment rates remain below the national average. Increasing job opportunities will likely bring people into the area, and nearby vacation spots like Daniel Island will remain popular for vacation homes or investment properties. With impressive appreciation rates in the past decade, the Charleston area will continue attracting buyers in 2023.

Buyers searching for properties on Daniel Island can expect a mix of market conditions working in and against their favor. Although prices are projected to increase, they’ll do so at a slower rate, making the buying process more manageable. Additionally, inventory will continue to grow, meaning buyers will have more options when searching on the market. However, sellers’ market conditions will likely persist, alongside competition from buyers interested in the barrier island’s amenities and location.

Buyers should also consider factors like interest rates when financing a home purchase with a mortgage. As of this writing, South Carolina rates for a 30-year fixed loan were 6.92%, while 15-year fixed loans were about 6.30%. To find the best rates, buyers should research several local lenders and mortgage types before getting preapproved. The cost of living on Daniel Island is higher than the national average, which can be a barrier to some buyers. This discrepancy is particularly evident in housing costs, which are more than double the national average.

Sellers interested in listing their properties in the new year can expect many advantages. For one, prices are projected to increase throughout 2023, and with market conditions expected to continue favoring sellers, they can expect continued demand and high offers entering the new year. Working with a local, expert agent like Kenton Selvey will help sellers leverage these advantages even more, as he’ll know how to prepare, market, and price your property for a quick and successful sale.

There are a few things to be mindful of entering the new year. Although the market will remain in the sellers’ favor, it will continue to slow. Sellers should be careful not to overprice their properties, as they may linger on the market. Continued decreasing sales caused by rising mortgage rates will also impact home sales times. Sellers should consider negatively impacted buying power when listing in 2023 and the possible challenges of finding a new property once they’ve closed on a sale.

Daniel Island will remain a popular area for buyers, whose persisting interest will work in sellers’ favor. While the market is likely to continue its slowdown, buyers can expect competition from individuals looking to capitalize on the state’s healthy job market and the island’s amenities. Meanwhile, sellers will continue to benefit from rising prices and low inventory.

When ready to plan your 2023 home transaction, contact trusted local agent Kenton Selvey.

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