I wanted to share some key updates on the current state of the real estate market in Charleston. To provide a clear picture, I’ve included some visual slides that illustrate these trends effectively.
Market Timing Trends:
The typical time between the original listing date and going under contract has increased compared to past trends. During the pandemic, homes often went under contract within 2 to 4 days. Pre-pandemic, this average was around 30 to 40 days.
Currently, the days on market are gradually increasing. On the left side of the slide, you’ll see pre-pandemic averages. The darker blue lines represent current data, while the lighter lines show last year’s data. Over the winter months, days on market have risen into the 20s.
Pricing and Marketability:
Homes priced correctly are selling in about nine days. However, overpriced homes tend to stay on the market longer. If your home has been listed for more than nine days without acceptable offers, it might be overpriced or facing other issues such as marketability or condition.
Ensuring your home is staged and marketed professionally can significantly impact its attractiveness to potential buyers.
Price Adjustments:
Currently, over 30% of homes on the market are undergoing price reductions within a 30-day period, a noticeable increase from previous years.
Before considering a price reduction, evaluate your marketing strategy. Ensure your home is listed on over 400 websites and targeting the right buyers, including those moving from out of the area. Charleston sees 45 new residents daily, so reaching this audience is crucial.
Marketing Strategy:
A sound marketing strategy is vital. Your home should be visible to every potential buyer in the market. If you feel your current strategy might be lacking, I’d be happy to assist.
If you want to discuss a comprehensive marketing plan or need a professional to handle it, please don’t hesitate to reach out. I offer consultations to help ensure your home is marketed effectively to sell.
Thank you for your time, and feel free to contact me if you have any questions or need further assistance.
Over the past 13 years, Charleston has seen an average daily influx of 38 new residents, increasing to about 45 per day over the last three years. This steady population growth has significantly strained our housing market, exacerbated by the fact that home construction has not kept pace with demand.
Comparing this year to previous years, the market pace in 2024 has slowed relative to 2023, which itself marked a notable downturn from the peak years of 2020-2022. This deceleration is largely due to the prevailing high interest rates, currently around the mid-seven percent range. The Federal Reserve had initially projected three rate cuts by year-end, but recent economic developments—such as increases in unemployment and inflation—might delay these reductions.
Despite fewer transactions, home prices have continued to rise due to the low inventory, with an average increase of about 5% over the past year, and in some areas, as much as 10%. For homeowners considering selling, now represents an excellent opportunity to secure top dollar. For those thinking of moving to a higher-priced home, acting sooner rather than later is advisable, even with the current high interest rates.
Consider this scenario: if your home is currently valued at $500,000 and is expected to appreciate by 10% next year, it will be worth $550,000. However, a $700,000 home you might be eyeing will then cost $770,000. By waiting, the cost difference increases by $20,000. Although interest rates are high now, purchasing sooner allows you to potentially refinance at a lower rate in the future.
We also offer exclusive programs with initial rates around 4%, with options to refinance free of charge within the next three years, should rates decline. This could be a significant benefit if you’re planning to buy or refinance soon.
For any questions about these programs or if you’re interested in a home evaluation or receiving an instant cash offer, please click the links below.
