The real estate market in Charleston has been on a steady growth trajectory, presenting a competitive landscape for potential buyers and investors. Let's look into the latest statistics to help you predict the Charleston South Carolina real estate market trends for 2024.
2023 Charleston Housing Market Trends
It’s no secret that Charleston's housing market is highly competitive. The median sales price for a Charleston home was $520,000 last month, showing a four percent increase from the previous year. Additionally, the median price per square foot stands at $299, reflecting a 3.1% year-over-year increase.
Influential Factors in the Forecast
Several factors influence the Charleston housing market forecast, including:
Economic Conditions: Economic stability and growth in Charleston can affect housing demand and pricing.
Population Trends: Changes in population, including migration patterns, impact home demand.
Interest Rates: Fluctuations in mortgage rates affect home affordability.
Local Development: New construction and development projects impact housing supply and demand.
National Trends: Broader national economic and housing market trends have ripple effects on Charleston's market.
Both buyers and sellers should closely monitor these factors to make informed decisions in Charleston's evolving housing market. Stay informed and prepared for this dynamic real estate landscape.
Compared to the national average, Charleston's cost of living is lower, making it an attractive option for real estate investors. Homes in North Charleston command prices approximately 30 percent higher than other markets. The average time a Charleston, SC, home spends on the market is 46 days, compared to 38 days in 2022.
Competitiveness in the Real Estate Markets of South Carolina
Charleston's real estate market is competitive, with homes typically selling in less than six weeks. Even in Q4 of 2023 when interest rates are climbing to new heights, multiple offers are still common. Average home prices in Charleston, SC, dipped two percent below the asking price, an appealing factor for investors.
Hot properties, however, are priced at least 2% below the market with deals reached in as few as 28 days. The sale-to-list price ratio for all home types in Charleston, South Carolina, is a strong 98.4 percent.
Nationwide, around 0.51 percent of homebuyers focused their search on the South Carolina real estate market, specifically North Charleston. A significant 71 percent of homebuyers prefer to stay within the Charleston metropolitan area. People are relocating to Charleston from cities like Washington, DC, Boston, and New York, while others are drawn to places like Greenville, South Carolina, Asheville, and Columbia.
Factors Affecting the Charleston Housing Market
Charleston, SC, stands out as an appealing destination for real estate investors due to various factors:
Demographics and Population Growth
Charleston's population has surged by 14 percent in the past decade, a trend expected to continue. This demographic profile is favorable for investors, given the presence of a young and educated population.
Student and Military Market
The presence of military bases and educational institutions like MUSC, Charleston Southern University, and College of Charleston creates a steady demand for rental properties. With a large student population and military personnel, the housing market thrives.
Large Tourism Market
Charleston's popularity as a top tourist destination attracts approximately eight million visitors annually. This translates to high demand for short-term rental properties, making it an ideal scenario for investors.
Excellent Job Market
Charleston's economy has witnessed substantial growth, driven by sectors like manufacturing, tourism, aerospace, and healthcare. Job opportunities abound, reducing the need for long commutes and increasing the demand for local real estate.
Low Tax Environment
South Carolina is known for its low property taxes and the absence of estate or inheritance taxes, making it favorable for long-term real estate investments.
Charleston, SC, is considered landlord-friendly, with laws that protect landlords' rights and offer them more control over their properties.
2024 Housing Market Outlook
The Charleston housing market is unlikely to crash due to factors like mild winters attracting residents and tourists year-round, a substantial student population, and a robust job market. However, potential buyers may face longer wait times for favorable deals. Thankfully, real estate technological advances may bridge the gap.
In Charleston's real estate market, technology plays a pivotal role, reshaping the way properties are bought, sold, and managed. Virtual tours and digital marketing have become indispensable tools, allowing potential buyers to explore properties from the comfort of their homes and enabling sellers to showcase their listings effectively.
Also, the adoption of proptech solutions, such as online property management and rental platforms, has streamlined property management processes, making it easier for landlords to oversee their investments and for tenants to find and secure rental properties with ease. These technological advancements are revolutionizing the real estate landscape in Charleston, enhancing efficiency and convenience for all stakeholders.
Charleston Housing Market Statistics
Some key statistics related to the Charleston housing market and key neighborhoods include:
Shadowmoss is the most affordable neighborhood, with a median listing price of $349,900.
Beresford Hall is among the most expensive neighborhoods, with a median price of $2.6 million.
Inventory supply remains steady at 0.9 months, indicating equilibrium between supply and demand.
Year-over-year, the inventory of homes for sale has decreased by about 6.7 percent.
The average sales price for a single-family home in Charleston stands at approximately $395,000.
Home values have increased by 65 percent over the past five years, with a 31 percent increase in the previous year.
Housing Market Predictions
As we move into the new year, Charleston's housing market is expected to see continued growth. Rising interest rates and increased demand for housing due to job growth are likely to drive market dynamics. Experts predict a 2.2 percent increase in property values through 2024, though some houses may still sell below their listing price.
One factor driving the Charleston market is sustained job growth, ensuring ongoing housing demand. The principle of supply and demand helps explain the rising home prices in Charleston, where limited supply meets high demand.
Understanding broader real estate trends in the Charleston Metropolitan Statistical Area (MSA) is pivotal. Here's a glimpse of the expected percentage changes in housing prices for Charleston's MSA:
By August 31, 2023, a 0.7% increase is projected.
By October 31, 2023, this growth is expected to expand to 1.6%.
Looking ahead to July 31, 2024, a more substantial 6.8% increase is anticipated.
Charleston, SC, continues to see rising home values, attracting individuals and investors alike. Rental opportunities are abundant, particularly among students, military personnel, and those seeking a warm climate. That being said, external factors like interest rates and economic downturns exert significant influence over the real estate market.
While home prices will always vary by local market, one takeaway is that experts predict owning a home will continue to appreciate over time. And, we can celebrate how Charleston South Carolina has continued to remain an incredibly strong real estate market.