Charleston SC Homes: How’s The Market?
Once again, I am looking at the Charleston MLS, this time to see market stats for Charleston SC homes. Previous posts looked at market data for specific neighborhoods, and I will continue to do that considering there are so many neighborhoods out there. But today, I am taking a step back to look at the bigger picture.
The number of Closed Sales for October was down from September, from 1308 to 1254. That number peaked in June at 1453. In fact, looking at the graph, I left in the numbers going back a couple years so that you can see that June was the best month for Charleston SC homes for several years. You can also see that despite the numbers declining since that peak, sales numbers are at a higher level than they have been.
Pending Sales are often a good indicator of what sales will look like in the coming months. For October, the Pending Sales followed the downward trend of Closed Sales, with 1187. That is down from September’s 1232.
I again included the last couple years worth of data to show that despite the number of Pending Sales declining, that number is coming off of a multi-year peak, and is still higher than it has been.
Average Sales Price actually rebounded in October, up to $298,424. Again, June was the peak at $324,324, and also the peak for the last several years. After June, the Average Sales Price dropped, down to $274,209 in September.
Average Price Per Square Foot is also on the upswing, back up to $142/sq ft. This is close to the June peak of $147/sq ft. October was the highest Average Price Per Square Foot for the entire Charleston MLS (besides the June peak) since the beginning of 2011.
Average Days On the Market (DOM) for Charleston SC homes for sale crept up slightly in October, to 80 DOM. That is up from September’s 74, which was the lowest DOM in the last couple years. As you can see, the Average DOM for the Charleston MLS is at the lowest it’s been years.
The next Charleston MLS number to look at is Months Supply of Inventory. In a normal market, that number is 6 months. Anything more indicates a buyers market, anything less indicates a sellers market.
Right now, the Charleston MLS is at 5 months. That number has been falling steadily the last couple years, and looks to continue.
Two final stats worth looking at: the number of homes currently for sale on the Charleston MLS, as well as the number of new Charleston SC homes listings.
The total number of homes for sale in October was 5,974. That was down from September, which saw 6,236 homes for sale in Charleston SC. That number peaked in March at 6,832.
There were 1571 new homes listed for sale on the Charleston MLS in October, up slightly from September, in which there were 1525 new listings. That number peaked back in March at 2078.
I took a quick look at the current number of homes listed for sale on the Charleston MLS, as well as the number of homes Contingent. There are, as of today, 5,888 Charleston SC homes listed for sale.
Contingent homes are homes that are under contract, but they are not yet set to close. There is a contingency in the contract that must be cleared first–this can simply be getting the appraisal completed, or final approval from the lender. Or, it could be for some other reason.
No matter, they are not yet ready to go to closing–when contingencies are cleared, then the listing is known as Pending. Contingent homes don’t necessarily translate to Pending Sales since some will not close.
However, they can indicate potential future sales, so that is why I am including that number. Right now, there are 1856 homes under contract on the Charleston MLS.
Charleston SC Homes For Sale Stats: What Do They Mean?
So, there are the numbers, but what exactly do they mean? Overall, the simplified version is that the Charleston SC market is doing very well. If you are thinking of buying Charleston SC homes for sale, then there are many reasons why now is a good time. In fact, I covered many of the financial reasons it makes sense as opposed to waiting yesterday in this blog post.
But here are the reasons based on this data from the Charleston MLS. First, prices are heading up. They have had some dips here and there, but if you look at the graph, prices are hovering around their highest levels in years, and are trending up.
The Average Price Per Square Foot continues to rise as well. These indicators are a good sign for buyers–values are not just holding steady, but are on the rise. This should give buyers confidence in the market, and alleviate fears of a drop in value.
But it is also a sign that waiting means you miss out. That house you love today is only going to be more expensive next year. It will cost you more to buy, and it may end up costing more than you can afford.
Not only is there potential for opportunity lost, but you also lose out on the equity you could be building. Whether you own or rent, you are paying someone’s mortgage–might as well be yours so that you gain all the equity for yourself, and not your landlord.
Another important graph buyers should pay attention to is the Months Supply. That number is coming down, which indicates there isn’t enough supply to meet the demand. While it is just slightly below the “normal” 6 months threshold, as that number decreases the market will get crazier for buyers.
I have already seen homes selling quickly in 2014, and multiple offer situations are not uncommon. As the Months Supply drops, it will become more and more of a sellers market. Buyers will continue to lose leverage in price negotiations as that number declines.
For sellers of Charleston SC homes, now is also a good time to sell. It looks like the market is heading in the perfect direction for you: prices are on the rise, and the demand exceeds the supply.
With interest rates heading upward in 2015, along with prices, buyers will lose buying power. Plus, on the flip side, if you are thinking of moving up (or down), then now is a great time to make that move.
You can get a good price for your current home, but you will still get into your new home at a favorable time.
I purposely left the graphs showing data from the last couple years so that everyone would keep the proper perspective–some numbers dropped, but overall, the market for Charleston SC homes is doing better than it has over the last few years.
Charleston SC Homes For Sale: Buyers
If you are looking at buying Charleston SC homes for sale, then visit my website for more helpful information.
If you are thinking of selling, then you can download a free Fall 2014 Seller’s Guide by completing the form below. You can also get a Free Market Analysis and Home Value report at my webpage for sellers of Charleston SC homes.