Charleston SC Homes: Hot Market!
If you are shopping Charleston SC homes, then it is important that you know what is going on in the real estate market.
In my post yesterday, I went through the latest numbers for the national market.
Today, I am looking at the local numbers for Charleston SC homes.
This is the latest information from the Charleston MLS. First off, here is a look at the Closed Sales:
That number continues to rise in 2015, although there was a slight dip in April. In May there were 1,471 Closed Sales and that rose to 1,707 in June.
This June was the most Closed Sales since June of 2006, which saw 1,761 Closed Sales.
Next up is the Pending Home Sales:
April still remains the peak for 2015 (so far) with 1,751 Pending Home Sales. They dropped in May to 1,639 and increased in June to 1,735.
April is still the highest number since April 2005, which saw 1,754 Pending Home Sales.
Pending Sales is an important number because it is a key indicator of future sales. These are homes that are under contract and will be closing in the next 30-90 days.
Although not all will close, this number still strongly correlates with the Closed Sales numbers in the coming months.
Just compare the two graphs and see that they move pretty close to one another.
The next number to look at is home values. Charleston SC homes are selling at a rapid pace, but what about home values?
We actually have two numbers to look at for that, starting with Average Sales Price:
That number has also been climbing in 2015, although it flatlined in June. The Average Sales Price for Charleston SC homes in May was $322,370.
In June it actually dropped slightly to $322,363.
Since 2005, the highest Average Sales Price was in June 2007 at $323,030.
Here is a look at the Average Price Per Square Foot:
That number has skyrocketed in 2015, and in May the Average Price Per Square Foot for Charleston SC homes sold was $152/sq ft. In June it was up to $154/sq ft.
That is the highest Average Price Per Square Foot since May of 2008, which averaged $156/sq ft.
Ok, let’s take a look at the Average Days On The Market (DOM) for Charleston SC homes for sale:
Nationally, homes are selling at a faster pace than they have in years.
I forgot to share that in yesterday’s post, so to highlight how homes are selling nationally, here is an infographic that explains just how fast homes are selling:
Basically, the majority of the country is seeing homes sell in 90 days or less.
In Charleston, homes are selling in 58 days on average.
June is the lowest DOM since May 2006 at 54 DOM.
Finally, let’s take a look at the Months Supply of Inventory for Charleston SC homes for sale:
That number also continues to drop, from 4.7 Months in May to 4.5 Months in June.
And that is the lowest Months Supply since February 2006 at 4.2 Months.
That indicates a Sellers Market and also says that we need more inventory to meet buyer demand.
Currently there are 5,743 Charleston SC homes listed for sale. All year I have mentioned that we needed more inventory.
Summer is the typical selling season in Charleston, and sellers have come out because of the strong market.
Here is a look at the number of new listings each month this year:
That number peaked for 2015 back in March, which saw 2,251 new listings.
Although that number has dropped slightly over the following months, it is important to note that every month since then has seen over 2,000 new listings.
June marks the 4th consecutive month that has happened, and the last time we saw that many consecutive months of 2,000 new listings (or more) was in January to May 2008 (5 consecutive months).
So, what does all of this mean for buyers of Charleston SC homes?
Buyer demand is strong, and has been since the start of the year. This is reflected in the huge increase in home sales and Pending Sales.
The problem has been the market has been slow to meet that demand. Despite the large increase in inventory, inventory still isn’t keeping up with demand.
It seems like every time I update the latest numbers from the Charleston MLS, the current month is the best numbers we have seen in years. The Charleston SC real estate market is on fire.
The fact that it is a Sellers Market does mean that the sellers have the leverage. Selection is limited, and if you see a home you want to buy, you had better act quick.
Homes that are in good condition–that are move in ready–aren’t lasting long. It is not unusual for buyers to find themselves in a multiple offer situation.
It also isn’t unusual for a buyer to lose out on a home or two or three before finally getting one under contract.
This can be frustrating, but it is best that you understand what is happening in the market before jumping in.
That is why it is important to work with the right Realtor, one who will answer your questions and explain what is happening in the market. This will empower you to be a better buyer.
There are many advantages of buying sooner rather than later. Home values will continue to increase.
Interest rates are still near their historic lows, but they are expected to rise.
By waiting, the home you want will cost you more down the road. Not only will it’s price go up, but the mortgage will cost you more because you will have a higher interest rate.
However, it isn’t all doom and gloom.
Owning a home is as cheap as it has been in many years, and it still is cheaper than renting.
One important tip to keep in mind is how to handle a multiple offer situation.
The highest offer doesn’t always win a bidding war. Sellers will choose the best contract that suits them, and that isn’t always the highest offer.
This is where having the right agent is so important. You don’t want to try this market by yourself.
Not when you can have someone representing your best interests for free.
The right agent can best advise you in a multiple offer situation and help you present the strongest contract.
Perhaps the sellers need more time to close. Perhaps you do not have a home you need to sell first.
You could even add a contingency whereby you will beat any offer by $1000 up to a certain limit.
A good agent can come up with creative ways to make your offer stand out.
The key for buyers is to have some patience, but be ready to act quick when you see a home you really like.
The good news is once you have purchased your new home, then the rising home values will work in your favor.
You will quickly begin to build equity, and that is how you build wealth in America.
Stay tuned as in coming posts I will cover interest rates, misconceptions holding renters back, and signs that show this market is not heading for a bubble.
You will also see more reasons buying makes sense right now.
In the meantime, visit my website for more help in buying Charleston SC homes for sale.