Charleston Real Estate News

It’s a seller’s paradise… for now

If you’re still seeing for sale signs popping up around your neighborhood, you’re not alone, and for good reason. This could very well be the best time to sell a home in Charleston in the last decade because demand for homes is the highest we’ve seen in awhile. Demand is being driven by expanded job opportunities, positive media exposure and an encouraging economic outlook for the Charleston area. As a result,  buyers are aggressively pursuing new listings. Adding to the frenzy is that the housing inventory around the Holy City is extremely low which limits buyers’ choices and increases competition. Many listings are receiving multiple offers as buyers get into bidding wars, which drives prices higher; a great thing for homeowners looking to sell.

An Unusual Ending to summer

This Spring and Summer was one of the most active periods in Charleston real estate history. Families looking to purchase a home generally do so in these peak summer months when the kids are out of school and there is a more flexible schedule allowing them to shop for a new home. After July families that are shopping for a new home begin to taper their search and settle in until the spring. Typically the real estate market follows this same curve and there is a slowdown after summer, generally in the beginning of August. As Fall begins, transaction activity continues to diminish until spring time of the following year. However, August 2016 was 25% more active than August 2015 AND sales prices were up 10% compared to the same time a year ago! 

Although this burst of activity is impressive, it isn’t expected to stick around for an extended period. One thing it has done is helped to push the median sales price to a new all-time high in Charleston. The median sales price in Charleston is $243,560 up from $223,000 at this same time last year. That’s a gain of over $20k! What’s more impressive is that there are specific areas that gained more than twice that.

Areas of Strength in charleston

As a homeowner, it is an exciting time to be in Charleston. Values continue to rise at a sustainable rate while demand remains elevated. There are several specific areas around Charleston that are in exceedingly high demand with very low inventory. These represent areas of strength if you are a homeowner looking to sell.

Specifically, the outlying areas around Charleston have been flying off the shelf over the last few weeks which has depleted inventory there. Places like rural-West Ashley, Hanahan, and areas in Summerville all have less than 2 months of inventory (MOI). Generally, 6 months of inventory is considered to be a balanced market, so these areas are in DEEP seller’s markets right now.

Other areas like James Island, Mt. Pleasant, Daniel Island and Johns Island have been in demand all year and continue to sell at a fast pace. These areas saw a slight increase in inventory after summer which is to be expected with the seasonal slowdown, but they are still in deep seller’s markets as well. Each of these areas has less than 4 months of inventory (MOI), well below the 6 MOI line which means there is still substantially more demand than inventory.

If you are wondering how much your Charleston home is worth, wondering when the best time to list is, or just have questions about the buying or selling process. Contact me today! Everyone’s situation is different which makes it imperative to consult with a real estate professional about your specific options. Feel free to call or email me anytime:

Matt Anderson
[email protected]
(843) 437-8386

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The Secret’s Out

It’s no secret, not anymore. Not even 10 years ago Charleston was just emerging as a desirable place to live. Before the revitalization of upper King Street and investments by big employers like Boeing and Volvo, Charleston was a little known city with a deep history hidden away in the South East corner of the nation.

After numerous Top 10 awards from publications like Forbes, USA Today and Condé Nast Traveler combined with the proliferation of social media, Charleston was put on the map as a historical, charming and beautiful southern city. The ante was upped again when TV shows like Southern Charm, Top Chef, and Move-In Ready made a home in Charleston. Ultimately, this secured our place on the national stage as an amazing place to live, work and play.

In turn, the real estate market in Charleston responded. After the 2006-2007 recession the market was a little sluggish, but slowly regained lost ground. By 2015 Charleston real estate activity records were shattered as demand continued to rise rapidly. One statistic came out from the Charleston Metro Chamber of Commerce last year that calculated that on average, 43 people are moving to Charleston every day.

Despite the records that were broken last year, demand remains higher than ever. 2015 represented the 3rd busiest year in Charleston real estate history, yet we are on pace to eclipse that mark this year. Comparing the last 8 weeks of real estate activity (measured by properties under contract) we can see that we are even busier compared to the record year we had in 2015.

Why Its A Seller’s Market

As Boeing expands and the Volvo manufacturing plant is completed thousands of jobs will be created and the economic outlook is positive which means people are moving here for multiple reasons including work, retirement and education. This has created a demand for a broad range of homes in Charleston.

Demand is so high that it is depleting our housing inventory (or supply). When demand is higher than supply, prices tend to increase. When looking at housing inventory, generally 6 months of inventory (MOI) is considered to be a balanced market. However, more than half of the areas in Charleston have less than 6 months of inventory. In fact, around 60% of the MLS areas in Charleston have less than 4 months of inventory. James Island in particular, has the lowest inventory in all of Charleston with around 1.7 MOI.

When there is a limited supply of homes as there is in Charleston, buyers are forced to compete with each other which raises the value of the properties for sale. Many homeowners who were on the fence about selling in the past have recouped everything they lost in the 2006-2007 recession and can comfortably sell their home at or above market price. It is an exciting time for sellers in these conditions.

Off Market Home Sales

Another popular option that we have seen homeowners taking lately is selling their home off-market. This means that they are not listing their home in the MLS, but instead selling their home privately to off-market buyers. In a hot market like Charleston, why would you want to sell your home off-market? 

Conventional wisdom suggests that if you want to sell something, you want as many people to see it so that it creates competition and demand among buyers, raising the value of the product. In off-market deals buyers are paying a premium to close a deal without competition and in confidentiality. In some cases the homeowners never intended to sell, but were approached with an enticing enough deal that it made sense financially.

Sellers find it convenient for several reasons. For one, there is no time constraint. Both parties can craft a deal that suits their needs. For example, a buyer could allow for a flexible time table for the seller to find and close on a new home before completing the deal. Or vice versa, the seller could offer as much time as necessary to get any desired home inspections done before the buyer enters into the contract.

Sellers can also take advantage of reduced preparation costs because they avoid expenses related to required home inspections, pest inspections and home repairs.  They also avoid the inconvenience of having prospective buyers continuously looking through their home while it is listed on the MLS.

We have seen a marked increase in off-market sales in the Charleston area. In 2015, Matt Anderson Properties sold over 20 properties that were off market and 40+ in total sales all around Charleston including the Old Village, historic downtown and the Isle of Palms.

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 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

Matt Anderson 

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