Charleston MLS: The Numbers
Today I am looking at Charleston MLS data to get an idea of what is going on in the Charleston SC real estate market. In my last post I looked at the national sales numbers as well as some other data to get an overview of the real estate market in general. First, let’s look at the sales month to month so far in 2014:
As you can see, the numbers are on the decline. They peaked (so far for the year) in June, with 1453 closed sales. Since then, we have had 1397 closings (July), 1357 closings (August) and 1307 closings (September).
So, it hasn’t been a sharp decline, just a slight drop off. That could be attributed to the fact that many people prefer to move in the Summer so they don’t interrupt their children’s school schedule.
Charleston MLS: Slight Decline, But Still Better Than Last Year
It is also important to point out that we are doing better than last year. In 2013, sales peaked also in June with 1364 closings, and September numbers are just a bit below that number.
Another important set of data to consider is Pending Sales. These are often indicators of future sales as these are homes currently under contract. Here are the latest Pending Sales numbers for the Charleston MLS:
These numbers also reflect a decline, so by this indication we should see a further decline in sales through year’s end. It is important to note that for the last few years, the Charleston MLS showed the same pattern–Summer peak with a decline towards the end.
So, does this mean the Charleston SC real estate market is heading down the drain? I really do not think that is accurate. Keep in mind we are still ahead of 2013 sales wise, a Charleston continues to be one of the best markets in the country. In fact, Mt Pleasant is the 9th fastest growing city in the United States, and Charleston SC in general continues to be a popular destination to move to.
Charleston MLS: Lessons Learned By Supply Of Homes
One other important piece of information worth looking at is months supply of inventory. In a normal real estate market that number is 6 months. Anything less indicates a seller’s market, anything more is a buyer’s market. Here’s our current inventory levels:
As you can see, this number is also declining. It peaked in May right at 6 months, and today stands at 5.2 months. This would indicate that supply isn’t quite keeping up with demand. As a result, prices will continue to be driven upward, so property values will continue to rise.
This is a good indicator for the Charleston SC real estate market. Only time will tell, but it looks like the Charleston MLS is following the same pattern it has for the last several years–peaking in the Summer. Plus, with the latest closed sales numbers hovering close to last years peak, things look to be ok in Charleston SC.
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