Charleston Real Estate Price Predictions
Why People are falling for Charleston
By now it seems that everyone knows about Charleston. Whether it’s because the city keeps winning awards like the “Best City in The World” by Travel + Leisure or because Charleston and South Carolina have one of the lowest jobless rates in the country. Where there are jobs, media exposure, a rich history combined with scenic views and great people, it’s hard to make an argument against it. All of these factors have combined to make Charleston’s real estate some of most sought after in the country.
Looking at the real estate data over the last 2 months and comparing it to what is currently under contract, it’s possible to gain an idea of where the Charleston real estate market is heading in the immediate future. Although the market is moving towards the traditionally slower season, there are encouraging signs that point to a healthy market and rising property values in specific areas in Charleston.
The chart below is an attempt to look at where prices are going in the immediate future. It compares the last 2 months of sales to what is currently under contract(AC/P). 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 farthest column to the right, “probable % change in price”, shows James Island gaining 11.2% from $269k to close to $300k in the next two months and Daniel Island gaining over 12% from $611k to $686k. One thing to note is that James Island sold 200 homes compared to Daniel Island’s 68. Since there were more than twice the number of homes sold on James Island, that price prediction is much more reliable.
North Charleston, Mt. Pleasant, the Charleston peninsula (south of crosstown), and outlying areas are still in demand, but are projected to increase between just 2.5% and 4.5%. According to this data, the biggest decline will be the Charleston peninsula north of the crosstown which is projected to decrease close to 11%. Keep in mind that this area sold the least amount of homes at 54, which is the smallest sample size in this data set making it the least reliable.
Overall sales activity in the Charleston real estate market is still very strong, especially for this time of year. Many listings are still receiving multiple offers as buyers are still aggressively pursuing newer listings. Just last week there were 344 properties under contract including 13 listed at over $1 million in the Charleston MLS. However, sales activity is expected to slowly decline as winter approaches which is typically the slowest time for most markets. Shoppers with more flexible timelines can still find deals during the off-season as sellers who missed making deals during the peak season may settle for less rather than risk waiting another 6 months.
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:
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