Houses In Charleston SC: Not Enough
Attention owners of houses in Charleston SC: inventory is needed!
Whether you are thinking about selling or buying real estate Charleston SC, it is important that you know what is going on in the current market.
Charleston overall is a very hot market. Break it down city by city and you will see some areas are really hot. Most of Charleston is in a sellers market.
Here is a look at what is causing this, and how it affects both sellers and buyers.
What is happening nationally in real estate is similar to what is happening locally. Buyer demand is strong.
Home sales are increasing, as well as home values. Nationally, Pending Home Sales (homes under contract) have increased each of the last 4 months, and each month has hit a 9 year high.
Home sales are on the fastest pace in nearly six years. Homes are also selling faster than they have in years.
A lot of this can be attributed to strong buyer demand that has exceeded the supply of homes. And when demand exceeds supply, prices go up.
Just to show that happening in Charleston, here are some stats from the Charleston MLS. First, Closed Sales:
Closed Sales hit 1,465 in May. That is the most Closed Sales since June 2007, which also saw 1,465 Closed Sales.
Here is a look at the Average Sales Price:
In May the Average Sales Price was $322,536. That is the highest Average Sales Price since June 2007 which had an Average Sales Price of $323,030.
Here is a look at the Average Days On The Market (DOM) for houses in Charleston SC:
In May, the Average DOM was 63. That was the lowest since September of 2006, which saw an average of 59 DOM.
Finally, here is a look at the Months Supply Of Inventory:
That has dropped to 4.5 Months. That is the lowest since February 2006 at 4.2 Months.
I’ve looked over the numbers for individual cities, and I see the same things. Numbers from the last few months are the best in nearly 10 years, if not longer.
For sellers, this is good news. This is clearly a sellers market.
For buyers, it makes buying houses in Charleston SC a little tougher.
The selection is limited. And once you find a home, you had better act quickly before other buyers make an offer. It is not unusual for homes to receive multiple offers, leading to bidding wars.
For home owners, it is important to know what is happening. Buyer demand is strong right now, and as you can see by the above graphs, buyers came out from the start in 2015.
Typically, we don’t see buyers out until Spring. That is usually the time most people list their home. So, savvy sellers got a jump on things by listing early this year.
But that doesn’t mean you missed out on the market if you want to sell. Buyer demand remains strong, and we are entering the peak selling season for houses in Charleston SC.
Rapidly rising prices might entice some home owners to consider selling. Obviously, now is a good time to sell.
This is a great market to buy in as well, so maybe it is time to think about that new house. Whether you want to upsize, downsize, get closer to the city or move further out, right now is a good time to make the move.
After all, the current market needs more inventory.
Home appreciation slowing down would not be a bad thing. This keeps more buyers in the market and prevents them from being priced out of the market.
Right now, there are buyers for your home. By the end of the year, that may not be the case.
4.5 Months Supply is low. For a normal real estate market (or neutral market) we like to see a 6 Months Supply. Hopefully we can close that gap some this Summer.
For buyers, at least interest rates remain near their historic lows to help offset the rising prices. Plus, once you purchase, that appreciation will work for you by building equity.
If you are thinking about selling, it is still important that you use an agent that has an internet based marketing plan to ensure you get sold for top dollar and fast.
Check out my Pam Marshall Realtor sellers page for more information.
If you are looking at buying houses in Charleston SC, then check out my Pam Marshall Realtor buyers page.