Charleston SC Homes For Sale: Market Update

Charleston SC Homes For Sale: Latest Charleston MLS Numbers

If you are searching for Charleston SC homes for sale, it is important to know what is going on in the current real estate market.

In my last post I showed the latest numbers for the national real estate market, and today I am looking at what is happening locally.

This information is from the Charleston MLS. So, here are the latest numbers, starting with Closed Sales:

June saw the peak for 2015 (so far) with 1,714 Closed Sales. July was close, with 1,702 Closed Sales. In August, sales dropped to 1,388.

The next number to look at are Pending Sales. This is often an indicator of future sales since these are homes under contract that will close in the next 30-60 days.

In June, there were 1,622 Pending Sales. That increased in July to 1,664. August saw Pending Sales drop to 1,616. That is still more Pending Sales than any month in 2014.

With sales remaining strong, what about home values?

Here is a look at the Average Sales Price for Charleston SC homes for sale:

May was the peak month for 2015 with the Average Sales Price $322,343. That dropped slightly in June to $321,688, and dropped in July to $313,366. In August the Average Sales Price was $284,271.

It is important to note that May 2015 was the highest Average Sales Price for Charleston SC homes for sale since June 2007.

Next is a look at the Average Price Per Square Foot:

June was the peak of 2015, with the Average Price Per Square Foot of $153/sq ft. In July it dropped to $146/sq ft and in August to $142/sq ft.

June was the peak month in 2014 as well, with an Average Price Per Square Foot of $145/sq ft.

Next up is the Average Days On The Market (DOM):

As you can see, that number keeps dropping. In June and July Charleston SC homes for sale sold on average in 58 days. In August, the Average DOM dropped to 50 DOM.

Homes are selling faster than the have since December 2005, which saw an Average DOM of 49 days.

Finally, a look at the Months Supply of Inventory:

That number also continues to drop. In June there was a 4.9 Month Supply, and that dropped to 4.7 Months in July. In August, there was a 4.3 Month Supply of Charleston SC homes for sale.

Charleston SC Homes For Sale: Current Numbers

Currently, there are 5,715 homes listed for sale on the Charleston MLS. That number has also been dropping:

That is the lowest number of Charleston SC homes for sale since December 2005 at 5,176.

There are currently 893 Pending Sales, as well as 2,264 Contingent Sales.

Charleston SC Homes For Sale: How Is The Market?

So, what does all of this mean for the local real estate market?

Nationally, sales and home values remain strong. In fact, looking at year-over-year numbers, every month in 2015 is above 2014.

Although sales numbers have dropped since the May peak, they are still over last year when comparing year-over-year cumulative sales (August 2014 vs. August 2015):

Average Sales Price is also up over last year:

It will be worth revisiting the numbers for September, which will be available in a couple weeks.

It’s interesting to see that home values in Charleston have actually been on the decline.

Inventory is lacking, and the number of Charleston SC homes for sale have dropped to the lowest level in 10 years.

Usually this would drive prices upward. Perhaps it is just a glitch that will correct itself soon.

The demand remains strong, as evidenced by the high number of homes under contract.

It certainly cannot be attributed to distress sales. There are only 134 Foreclosures and Short Sales currently listed for sale.

Likely the best explanation is simply that although the numbers dropped, they are declining from peak levels. When you look at the year-over-year numbers, you see that they are all above 2014.

When the national sales and home values numbers are released, they are comparing each month to the same month a year ago.

Nationally, those numbers remain above where they were last year. The same holds true for Charleston.

When looking at yearly comparisons of home values, Charleston shows healthy growth:

Last year, home values increased by 5.4%. This year, they are up by 2.1%.

Nationally, home values were up in August by 5%. So, we aren’t up to national levels, however, we are experiencing a healthy rate of appreciation.

Home values are expected to continue to increase over the next few years–I will cover this in more detail in a future post.

Here locally, there’s no reason to think that Charleston won’t continue to see an increase in home values.

They may fluctuate month to month, but as you can see, they remain on the rise when comparing them year-over-year.

This remains a good market to buy a house. For sellers, it may be a little discouraging to see the home values down the last couple months.

However, demand remains strong and inventory is too low to meet it. Plus, homes are selling much faster than they have in nearly 10 years.

Whether you are looking to buy or sell, it is important to keep up with the latest market numbers.

You can visit my website and see the latest numbers from the Charleston MLS for each city within the greater Charleston area.

If you need help selling your home, or are searching for Charleston SC homes for sale, then be sure to visit my Pam Marshall Realtor website.

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