The Current Charleston Real Estate Market is One for the Record Books
As we move into the second half of the year, one thing is clear: the current Charleston real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.
A Shortage of Homes for Sale
Earlier this year, the number of homes available for sale in Charleston fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:
“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”
This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move.
Buyer Competition and Bidding Wars
Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale in Charleston, SC broke records this year – and that’s great news for sellers.
The latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers (see graph below):
For buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller.
Home Price Appreciation
The competition among buyers is driving prices up. Over the past year, we’ve seen home price appreciation rise across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:
“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”
Rising home values are a big part of why real estate remains one of the top sought-after investments for Charlestonians. For potential sellers, it also means it’s a great time to list your house to maximize the return on your investment.
A Rise in Home Values and Equity
The equity in a home doesn’t just grow when a homeowner pays their mortgage – it also grows as the home’s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. CoreLogic recently reported:
“…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020.”
That’s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their dream homes.
If you’re thinking about buying or selling, there’s no time like the present. Reach out to one of our real estate professionals to talk about how you can take advantage of the conditions we’re seeing today to meet your homeownership goals.
1865 S James Gregarie Road
MLS# 21019959 - Residential
Mount Pleasant, SC
Welcome to 1865 S. James Gregarie located in the highly sought after community of Park West. Pride of ownership is immediately evident from the moment you arrive at this pristine home. From its well manicured landscaping, immaculate presentation, peaceful views of the pond and surrounding wildlife this home is sure to impress! Every square inch of this home has been meticulously cared for and is completely ''turn key'' with new carpet and the entire home has recently been painted; exterior and interior including ceiling, doors and trim. The floor plan is ideal and offers the perfect blend of open connect living throughout the kitchen and living area combined with some traditional touches found in the formal dining room and formal living room. Just a few of the many features of this 5 bedroom 4 bath home include: Inviting 2 story foyer, true hardwood flooring, custom built-ins, extensive crown molding, smooth ceilings, gorgeous kitchen with granite counters, tile backsplash, and stainless steel appliances! The master suite offers a trey ceiling, lots of natural light and a walk-in closet. For added closet space the current owners have transformed half of the storage room into one of the largest closets you will find while maintaining ample storage space. The en-suite master bath has been recently renovated and boasts a dual vanity, garden tub and impressive glass shower. Secondary bedrooms are found on the 2nd level all of which have direct access to a full bath, ample closet space and tons of natural light. In addition, the second floor offers a massive bonus room ideal for a game room, media room, play room or 5th bedroom. Living space continues outdoors to seemingly endless unique spaces. The first being a deck which spans nearly the entire length of the home which makes a great outdoor entertaining space. Second is the private screened porch followed by a paver fire pit area. Saving the best for last, the hot tub is included with the sale! As an added bonus, the homeowners have installed an underground electric fence for the pup! Park West is one of Mt. Pleasants most desirable neighborhoods located just minutes from shopping, restaurants, downtown Charleston and area beaches; with extensive amenities that include 2 pools, a tennis club, multiple playgrounds, crabbing docks and miles of walking/bike paths. Not to mention the town recreation department within the neighborhood which offers baseball fields, soccer fields, indoor pool and indoor basketball courts. An added convenience is the elementary, primary and middle school and within the neighborhood making them easily accessible by foot/bike or golf cart!