HOUSING AFFORDABILITY

Housing affordability in the Charleston, SC area remains relatively balanced but increasingly strained.

While the affordability index of 113.5 suggests the median-income household can still afford a median-priced home, the required household income of over $103,000 and a monthly payment exceeding $2,100 highlight a real barrier for many buyers.

Homeowners are generally less cost-burdened than renters, yet a significant share of renters are spending over 30% of their income on housing.

Affordability also varies widely by age, with peak buying power in the 35–44 range and notable challenges for younger and older households—underscoring the importance of strategic p...

With price volatility in some of the major urban markets in the U.S., many residential real estate buyers and investors want to know what the home price forecast is for our Charleston, SC area.

So, here is the historical data and my own guesstimate:

The graph above shows the actual numbers and the compounded growth trend line, showing a 4.6% compounded growth rate per year since 1991.

In the next few years our market will probably return back towards the trend line, so median price appreciation is likely to decelerate.

Last year the annualized median home price in the Charleston, SC area grew by 4.1% year-over-year (see graph below):

Even though mortgage rates are predicted t...

Charleston, SC Metro Area 
Residential Real Estate Market Trends

Until 2019, Charleston's Median Home Sales Price trendline was below the 4.3% annual compound rate trendline.

The rapid appreciation in 2020 and 2021 made the actual line cross and we are now above the trendline, just like in 2005.

Unless supply catches up with demand, a reversal of these trends is unlikely in the short to medium term.

The gap between demand and supply is still growing. At the current rate of demand we would need about 6,000 active listings in the MLS to "balance" the market.

We have 1,000!

Are we in a real estate bubble?

These trend lines show that this time around home appreciation is much mo...

Last week we had an amazing week in terms of residential real estate activity!

We desperately need more HOMES TO SELL!!

Thinking of moving? Call us on 843-900-0155 to discuss a CUSTOMIZED PLAN to achieve YOUR GOALS!

Taken from the National Association of Realtors:

"The National Association of REALTORS® identified the top 10 markets that have shown resilience during this pandemic period and that are expected to perform well in a post-COVID-19 environment. In identifying these markets, NAR considered a variety of indicators that it views to be influential to a metro area’s recovery and growth prospects in a post-pandemic environment in 2021-2022.

In alphabetical order, the Top 10 markets are:

• Atlanta-Sandy Springs-Alpharetta, Georgia
• Boise City, Idaho
• Charleston-North Charleston, South Carolina
• Dallas-Fort Worth-Arlington, Texas
• Des Moines-West Des Moines, Iowa
• Indianapolis-Carmel-Anderso...

As we start 2021 with RECORD LOW inventory, it is important to note that not all the areas within the Charleston, SC metro area behave identically.

The table above shows the number of home sales that were Short Sales, Foreclosures and New Construction homes, by MLS area.

This table provides some interesting conclusions:

1. In 2020, the overall number of sold homes was up by 17.5% from 2019;
2. Foreclosures and short sales are almost non-existent (0.9% of sales);
3. Although the number of new construction sales increased by 17%, builders are not keeping up with increased demand (inventory keeps falling); and
4. Areas 63 (Summerville/Ridgeville) and 74 (Berkeley County-Jedburg Rd, Hwy 17A, Co...

What is Likely to Happen Next Year? 

Watch this short video to find Alan's predictions for 2021 for the residential real estate market in our area. 

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Read transcript below:

Hi, I'm Alan Donald with Keller Williams Realty and today I'm going to give you my crystal ball predictions for the residential real estate market in Charleston for 2021.

My first prediction is that home prices in the Charleston area will remain high.

We are at such a low point in inventory that we could double our inventory
and still be in a “seller's market”.

For that reason. I think home prices will remain high in 2021.

My second prediction for 2021 is that mortgage interest rates will remain low.

I ...

The Charleston, SC residential Real Estate Market is On Fire!

Charleston, SC. September 3, 2020

Last week 464 homes went under contract!

We had set the weekly record of 458 homes back in 2018. and we have surpassed that number for 16 of the last 17 weeks! Demand has never been at this level, and certainly not this late in the year.

Inventory continues to drop, we now have less than 3,400 active listings in our MLS, while we had between 5,000-5,500 active listings for most of the last 5 years.

And consequently, it's a Hot Seller's Market! Overall we have 1.9 months of inventory (supply). In other words, 1 out of every 2 new "For Sale" signs that you see will be under contract nex...

We told you this was coming 2 months ago!

Charleston Area Residential Real Estate Sales Surge to New Record High in July

2,400 homes sold in July in the Charleston region at a median price of $305,000 according to preliminary data released today by the Charleston Trident Association of Realtors® (CTAR). July’s home sales mark the largest number of sales recorded in the Charleston region and a nearly 32% increase over last July, when 1,824 homes sold at a median price of $278,450.

Year-to-date, 11,576 homes have changed hands at a median price of $290,515. At this point last year, 11,051 homes had sold at a median price of $277,548. Year-to-date, sales are now up almost 5% and media...

The Post & Courier reported today (June 20,2020) a 31% decrease in the number of sales for South Carolina (read article below). 

If all the cities in South Carolina behaved like Charleston did, it will be reporting RECORD SALES in June and July!! Because in May, Charleston posted a RECORD NUMBER (ever!) of homes going under contract!

It goes to show that homeowners who rely on public media to make decisions regarding real estate are acting on OLD NEWS. 

The real estate market can change course on a dime! In order to take make WISE BUYING or SELLING decisions, you need to have the LATEST NEWS! 

Get the latest news in your in-box! Sign up to receive our monthly newsletter!

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By ...

Charleston, SC Real Estate Has Gone Wild!

What's going on?

Charleston, SC Real Estate Has Gone Wild!

This past week set an all-time weekly record for the number of properties going under contract (525), beating the previous record of 497 (that we had set 3 weeks ago) by 5%. That's an incredible level of buyer demand!

May was the busiest month ever in Charleston real estate history! And it beat the previous record (from last year) by over 10%!

What's going on?

This is great news for home sellers, because inventory (supply) is drastically down! You are selling into an under-supplied market and buyer demand has gone bonkers!

I can think of two obvious factors causing this phenome...

Charleston, SC Residential Real Estate Market Update - June 1, 2020

Buyer Demand

Demand for homes in January and February 2020 was up by 13% compared to last year's numbers, but in March and April demand dropped by 25% due to the COVID crisis. However, in May the market rebounded resoundingly, producing 4 RECORD-BREAKING WEEKS in activity, restoring demand up 12% from last year’s numbers. See the "spike" in demand on the chart below. 

Supply of Homes

The number of homes ON THE MARKET (market inventory) has been reduced from ~ 6300 a year ago, to ~ 4500 today (May 30, 2020).

Months of Inventory

The Months of Inventory (MOI) index shows that the relationship between supply and deman...

COVID-19, Quarantine and Real Estate

Ever since the U.S. got affected by the COVID-19 crisis and states imposed quarantine restrictions we have been getting questions about the real estate market and ways to be able to buy or sell real estate during this time. Here are a few of the most common questions that we've had to answer. 

Can I Sell My Charleston Home During COVID-19 Crisis?

The answer is YES!

Our market slowed down by about 30% during February and March, but since April it has rebounded drastically! The first three weeks in May registered RECORD NUMBERS of homes (see table below - click table to enlarge) going under contract. Demand for homes in the Charleston Area is at a RE...

Quick Market Update: Charleston County

The single family detached (SFD) home market for Charleston County showed a reduction in inventory and an increase in sales and median sales price. 

What does this mean for buyers and sellers moving forward?

1. Sellers: This is a GREAT TIME to sell your home! Take advantage of reduced competition and strong demand. Call us today to get started!

2. Buyers: Unfortunately this trend signals a tougher environment you will have to compete in. So hire an experienced Buyer's Agent who can provide the right advice to WIN competitive bids. Fortunately, mortgage interest rates are still super-low, so homes are still affordable, despite the rise in home pri...

Analysis of residential properties going under contract (contingent) during week of 1/31/20-2/6/20

• 408 residential properties under contract past wk. Wow!
  
  
• 336 single family homes went under contract in the past week. Median LIST price $299k,$161/sqft. 2 under $100k. 22 over $1M, 3 of
  those over $2M. Median C Days on Market-27. Median Year Built-2000
  
  
• 7(2%) of 336 single family homes that went under contract this past week were BANK OWNED FORECLOSURES or SHORT SALES. Another 10% were NEW CONSTRUCTION.
  
  Search for NEW, Single Family Homes

• 55 island single family homes under contract past week:
  • 9 Daniel Island single family homes went under contract this past week, LISTED from $62...

So, how's the market?
This is the question that every Realtor gets every time. There are so many nuances to talk about that it is virtually impossible to condense everything into a 2-minute conversation. 

This report goes from the general to the specific:

We will look at the US economic outlook, the mortgage rates, national home prices and rental rates and home affordability, then we're going to look at the Charleston SC market sales activity, home prices, supply and demand, a few sub-markets, market trends and the prognosis for 2020.

[IMPORTANT NOTE: At the very bottom of this blog, you will see specific market reports for MLS Areas such as Daniel Island and Lower Mount Pleasant. The...

Economists Expect the Charleston Real Estate Market to Outpace National Averages Through 2025

CHARLESTON, SC—(December 11, 2019) The National Association of Realtors® (NAR) identified 10 markets expected to outperform over the next three to five years. In alphabetical order, the markets are:
• Charleston, South Carolina
• Charlotte, North Carolina
• Colorado Springs, Colorado
• Columbus, Ohio
• Dallas-Fort Worth, Texas
• Fort Collins, Colorado
• Las Vegas, Nevada
• Ogden, Utah
• Raleigh-Durham-Chapel Hill, North Carolina
• Tampa-St. Petersburg, Florida
 

“Some markets are clearly positioned for exceptional longer term performance due to their relative housing affordability combined with solid loca...

Analysis of residential properties going under contract (contingent) during week of 11/29/19-12/5/19. Charleston, SC Metro Area

206 residential properties went under contract past week. Slower than average (Thanksgiving hangover?). 

1. 145 single family homes went under contract this past week. Median LIST price $299k,$155/sqft. 1 under $100k. 7 over $1M, 3 of
   those over $2M. Median 41 CDOM. Median Year Built 2000.
   • 1% were BANK OWNED FORECLOSURES or SHORT SALES. Another 7% were NEW CONSTRUCTION.
   • 20 island single family homes went under contract this past week.
     • 11 James Island single family homes under contract past week LISTED from $275k-$2.5M. 2 over $400k. Median
       $350k,$226/sqft...