I thought it would be interesting to take a look at the numbers over the Summer for homes for sale in Charleston SC.
Looking at the numbers from the Charleston MLS, here is a recap of what is going on in the Charleston SC real estate market.
I decided to include the month of May, since that is typically the month we see a spike in new listings to hit the market:
Of course, that is not quite the case with the Charleston SC real estate market.
Over the last 10 years the month in which we see the most new listings hit the market is March.
The only year that was not the case was 2007, with January the peak month with 2,959 new listings. But March 2007 wasn’t far off with 2,884 new listings.
Here’s a look at the peak month for new listings over the last 10 years:
This is likely because of the climate in Charleston, SC. We see spring a lot sooner than the rest of the country.
Plus, this sets up the summer market for Charleston, SC real estate.
Although the Average Days On The Market (DOM) has dropped below 30 days nationally, usually homes listed in March will still take a month or two to sell, thus impacting the Summer numbers.
Therefore, numbers from the month of May are included.
Summer 2017: The Numbers
So, let’s first take a look at the number of homes sold for the Summer of 2017 (May through August):
Overall, the number of homes sold are slightly above 2016.
Here’s a look at the Months Supply of Inventory for the Summer of 2016 and the Summer of 2017:
The Average DOM numbers are also down from 2016:
Next is a look at the Average Sales Price for homes for sale in Charleston SC:
Interesting to note that the Average Sales Price actually declined over the course of Summer. More about that in a minute.
Although that number is down, compared to 2016 those numbers are all up:
A Closer Look At Charleston SC Real Estate Home Value Numbers
Nationwide, the story with real estate has been the same song: lack of inventory, and the supply of homes not keeping up with the demand.
As a result, home values are continually being pushed up.
That is the same scenario for homes for sale in Charleston SC, although these numbers don’t seem to jive with that script.
This could be for many reasons. First of all, these numbers include all sales from the Charleston MLS–all price points, as well as condos, townhomes, and single family homes.
So, small discrepancies such as more condos sold one month compared to another, or more higher end homes sold in one month could affect the overall numbers.
Everything else points to home values rising. So, to get a more complete picture I also took a look at the Median Sales Price over the Summer months:
A recent article in the Charleston Post & Courier by Jim Parker (“New Homes Spurt Driving Up Charleston Area Housing Totals“) pointed out that home values are doing just fine in the Charleston, SC real estate market:
“Home sales shot up noticeably this year, Jenkinson says, noting that the 1,987 deals closed at a $260,000 median price in greater Charleston was the highest figure in the history of the local Multiple Listing Service. The numbers compared with 1,936 house sold at $250,000 midpoint a year earlier.”
Traditionally, June is the peak month for home values. Here is a look at the peak month for Median Home Values for Charleston over the last 10 years:
What’s In Store For Homes For Sale In Charleston SC?
Overall, 2017 was a good Summer for homes for sale in Charleston, SC.
Looking forward, home sales should remain strong. One big indicator for sales is Pending Sales.
Although the number of Pending Sales has dipped in the last couple months, those numbers remain strong despite the lack of inventory:
May of this year saw the most Pending Sales since March of 2005, which saw 1855 Pending Sales. That was the highest number of Pending Sales ever on the Charleston MLS.
So, demand remains strong. Inventory is still too low. Prices will continue to increase.
While the Average Sales Price fluctuates, those numbers are still trending upward overall:
The Jim Parker article also mentions other positive factors that will continue to influence the Charleston real estate market: dropping unemployment, as well as increased wages:
“Wages are particularly strong in the Lowcountry, climbing 9.3 percent in the past year from $23.35 an hour in June 2016 to $25.53 this June. “The bottom line is the Charleston market is booming, leading the state,” he says.”
Plus, South Carolina has been and continues to be one of the leading states for anticipated growth:
“A key indicator that Von Nessen cited stems from the Federal Reserve Bank of Philadelphia listing states with the highest anticipated growth. “South Carolina is consistently in the top 10,” he says, adding that the state is on “solid footing the rest of 2017.”
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