Charleston SC Real Estate: A Look Into The Local Numbers
Historically speaking, an appreciation rate of 3.5% is what has been the average over the last 100 years. If you look at the trend in values leading up to the bubble, we were right at that 3.5% rate. During the real estate explosion of the early 2000s, we saw real estate appreciation rates close to an average of 8% each year.
Of course, when things get out of whack one way, we can expect to see a correction, and that is what happened during the downturn–a negative appreciation of close to 6%.
Since then, real estate has appreciated at a 4.7% rate, and that is the projected rate for the next few years. So, how are we faring in the Charleston SC real estate market? Overall sales in the greater Charleston SC MLS area last year were 15,296 sales total–this includes single family homes, townhomes and condos. If you look at the numbers year-to-date, we have had 9,645 sales. Based on those numbers and projecting them out for the rest of the year, we are looking at 15,708 sales total for 20 14.
As far as values go, the median home price last year was $190,000. For 2014, we are at $203,000 an increase of 6.5%. So, it looks like we are ahead of the national average, which has been very true for the Charleston SC real estate market for many years.
One thing that is affecting appreciation values nationwide is housing inventory. Across the nation there aren’t enough homes for sale to meet demand, and this is pushing values higher. That is also true in Charleston.
Projected home sales for the remainder of the year are 6,063. However, there are only 4,416 homes actively listed on the MLS. On a national level a 6 month supply of homes on the market is the threshold for a normal market. Anything less is a sellers market. Right now, we are at 5 to 5 1/2 months nationally. The Charleston SC real estate market is currently a seller’s market, and it is not unusual for homes to receive multiple offers.
Stay tuned with more market updates. Be sure to visit my website for more information about Charleston SC real estate.