Charleston is a gorgeous place to live, and the neighborhoods are often vibrant and exciting. Plus, you'll find waterfront properties and historic homes throughout the area.
However, it's important to know how the Charleston real estate market might change throughout the years or what it's done in the past to understand the trends now.
Overall, the Charleston housing market is growing steadily and is now showing promise for competitiveness. Today, you'll learn about the market trends and statistics to help you see if downtown Charleston is right for you.
Charleston Housing Market Trends
Redfin claims that the housing market is quite competitive in Charleston. North Charleston homes get about two offers and sell in roughly 49 days. Likewise, the median sales price for a Charleston home was $520,000 last month, which is up about four percent from last year. The median price by square foot was $299, which is 3.1 percent higher than last year, as well.
Since the cost of living is much lower than the national average, real estate investors can still keep rents decent in Charleston. North Charleston, South Carolina, homes see 30 percent more in price than other markets. Plus, Charleston, SC, homes sell after about 47 days on the market compared to last year's 38 days.
Competitiveness in the Real Estate Markets of South Carolina
Charleston is competitive because houses sell in about 49 days. Over the last three months, most homes got multiple offers. Likewise, average home prices in Charleston, SC, dropped to two percent below the asking price, which is ideal for investors.
However, hot houses will have average home prices and sell in 32 days. Still, the sale-to-list price for every home type is 98.4 percent in Charleston, South Carolina.
Roughly 0.51 percent of all homebuyers in the nation searched within the South Carolina real estate market and North Charleston specifically. However, 71 percent of homebuyers want to stay in the metropolitan area of Charleston, SC.
Overall, people want to move here from Washington, DC, Boston, and New York. However, others wish to leave for Greenville, South Carolina, Ashville, and Columbia.
Factors Affecting the Charleston Housing Market
The Charleston market often gets overlooked for "hot" cities in Texas and Florida. However, many factors make Charleston, SC, the best place for investors who want to buy properties.
Overall, the Charleston region is a coastal city, so the job market is decent, there's a vibrant culture, and you get a rich history. Here are a few factors that might affect the housing market in Charleston, SC:
Demographics and Population for Berkeley County and Beyond
Within the past decade, Charleston's population has seen a jump of 14 percent, which should continue to grow. The demographics are also great for investors because there are plenty of young and educated people.
Student and Military Market
Military bases offer mobile populations of people who must rent. You have the Naval and Air Force bases in Charleston, SC, so you're likely to continue seeing high home values with lower prices. In fact, there are over 20,000 military personnel, and almost all of them rent.
You also have students who flock to Charleston, SC, to attend the SC Medical University, Charleston Southern University, and the College of Charleston. There's also a community college and the many educational programs through the military.
With the hot, humid summers and a huge student market for the city size, you'll find this housing market is much better than the national average.
Large Tourism Market
Charleston, SC, is now gaining recognition as the top destination resort for travelers. It's near the Atlantic coast, so the ocean breeze helps people meditate in the warm climate. People often come here to escape cold winters back home.
In fact, there are eight million visitors to the Charleston area each year, and it's easy to rent out a beach house or condo to tourists if you offer decent rates. Usually, you don't have to hold open houses because the real estate is in high demand. Renters are everywhere, making it ideal for investors with deep pockets to get started.
Excellent Job Market
Overall, the economy in Charleston, SC, has grown exponentially in years past, so the job market is booming now. In fact, there are many industries popping up, such as manufacturing, tourism, aerospace, and healthcare.
There's a strong demand for real estate in the area because people don't want to live far away and have to commute long distances.
Low Tax State
Charleston, SC, and all of South Carolina is considered a low-tax state, which is excellent news for real estate investors. There are low property taxes, so you can easily maximize your returns. Plus, you don't have to deal with estate or inheritance tax, so it's great for long-term investments.
It's crucial for buyers to know how Charleston, SC, is for landlords. If you're interested in buying properties, prices remain high, but you can easily recoup your money. Plus, the state is landlord-friendly, so the laws protect them and their rights. There's a low tenant protection index, meaning landlords can control their properties, making investments less risky.
Will the Housing Market Crash in Charleston, South Carolina?
It doesn't appear that the housing market will crash in Charleston because of the mild winters. This brings people here during the colder months, allowing them to stay warm and enjoy summer-like activities throughout the year. Overall, this indicates renters will always be plentiful.
Likewise, there are plenty of students attending the colleges, and military bases make it crucial to have rentals for them to live in.
Buyers should check out the available homes in the many neighborhoods. However, they may have to wait longer for a sale if they want a good deal. This could be problematic because they could lose out.
Charleston Housing Market Statistics
Here are a few statistics surrounding the housing market in Charleston, SC:
- Shadowmass is the most affordable neighborhood to buy a home, with a median listing price of $349,900.
- There are 58 neighborhoods in Charleston, but Beresford Hall is very expensive ($2.6 million).
- Inventory supply is holding steady at 0.9 months, which means the market is likely stabilizing between demand and supply.
- The homes-for-sale inventory has decreased by about 6.7 percent year-over-year.
- Medial sales prices in Charleston for a single-family home were about $395,000.
- Home values throughout the past five years have increased by 65 percent.
- Last year, home values increased by 31 percent.
Housing Market Predictions
It's only May, and the nation hasn't seen a homebuying session. Mortgage and interest rates are sure to continue rising, and home sales have slumped in the previous months.
Most homeowners put off buying a house because of the banking volatility, a weak economy, and many other issues.
Charleston Housing Market Predictions
With rising interest rates, homebuyers and investors worry about the future of real estate in Charleston, SC. Job growth is a positive trend that will continue affecting the market in Charleston. With people flocking here for work, there will be a higher demand for housing in decent neighborhoods.
Home sales have increased, which can be explained by supply and demand. When there's less of something, the price increases as more people want it.
The growth trend through 2024 is set to continue, and experts claim there will be a 2.2 percent market increase in values. However, many houses still sell for way less than the listing price.
Home values in Charleston, SC, continue to rise, so it's likely that the local economy is causing more people to move to the area. There are many renting populations out there, including students, military personnel, and those who want to live in a warm climate for winter.
Buyers in Charleston, SC, should remain on top, but it will take work to find the best and most affordable houses. Overall, investors should work with Realtors who understand the city to ensure a sale for a decent price.
Is Charleston a Seller's Market?
Overall, yes. Prices are often higher for homes, and they sell faster, as well. Therefore, if you're interested, it's wise to work with a Realtor who understands the market.
Should I Purchase an Investment Property in Charleston?
Since Charleston has a low unemployment rate and a huge population (that keeps growing), it's wise to invest in property here.