As a home buyer in this market it can be overwhelming and difficult to make a firm decision especially when you are competing with other buyers for a limited supply of Charleston homes. Adding to that pressure is knowing that the longer you wait, the more likely you will have to pay more for a comparable home. Charleston home prices continue to rise and future price predictions are not showing any breaks on the horizon.
As this Spring is unfolding we are seeing robust activity across the board. Demand remains very high for almost all areas in the Lowcountry which has driven Charleston home prices higher. Last year was the 3rd busiest year in Charleston real estate history, but so far this year has been even more active overall.
The above graph shows the past few weeks of Charleston real estate activity (Red: 2016, Blue: 2015) compared to the same time last year. The busiest week in Charleston real estate history occurred last year during the first week of April with 439 properties under contract. We’ve already come close to breaking that record several times this year. Overall we are up 7.3% in transactions (January – March) and the median sales price has risen around 5% overall to $235k.
Future Price Predictions for Charleston Home Prices
This chart is an attempt to look at where Charleston home prices are going in the immediate future. It compares the last 2 months of sales to what is currently under contract(AC/P). The green box highlights the median SALES price (what people actually paid) for each area through February and March 2016. The red box highlights the median LIST price (asking price) and ANTICIPATED SALES PRICE for April/May 2016. What is currently under contract seems to represent roughly the next 2 months of sales. It assumes that those properties under contract will sell for 95% of their current LIST price.
The future price predictions show that every area in the Charleston MLS is projected to increase in price over the next couple months with the exception of North Charleston (Areas 31,32). West Ashley, Mount Pleasant and Summerville all had very strong sales, increasing by a predicted average of almost 8%.
You may notice that downtown Charleston areas had huge increases (Area 52, north of crosstown up over 17%). Due to such small sample sizes, sometimes less than 50 sales, these numbers are susceptible to skewing. However, the total number of sales has jumped in these areas compared to earlier in the year which may indicate an uptick in demand.
What Buyers can do
As a buyer looking in today’s market one way to combat increasing Charleston home prices is timing. Sometimes shopping in the off-season during late fall, winter and early spring can yield slightly lower prices because you are avoiding competition from other buyers. However, summer is quickly approaching and it is typically the busiest time of the year for Charleston real estate because it is an advantageous time for homeowners with children to list and shop for new homes.
Another option that buyers have that often goes overlooked is shopping for homes that are off-market or not listed on the Multiple Listing Service. Read more about off-market properties here. Typically these homes are not publicly listed, but rather communicated through an exclusive network of real estate agents who match prospective buyers with homeowners who are looking to sell. Although these type of sales are most common in higher end real estate deals, they can be done at all levels.
If you are interested in exploring some of the off-market deals in Charleston or are considering selling your home you can contact me anytime. If you’re wondering how much your Charleston home is worth in today’s market you can get a free, instant home valuation at our sister site: www.charlestonlisting.com. If you just have questions about the buying or selling process, please contact me directly and I would be happy to answer all of your questions.
Email: [email protected]
Phone: (843) 437-8386
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