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How Is The Charleston Housing Market In 2019 For Investors And Buyers?

Introduction To Charleston SC Real Estate Market

Charleston is home to over a hundred and thirty thousand people. However, the Charleston housing market is significantly larger than this. The broader metropolitan area contains around seven hundred thousand people. The Charleston SC real estate market ranges from a somewhat dense downtown full of apartments to luxury waterfront homes and condos to affordable suburban properties. Charleston real estate market trends suggest a promising future for both investors and home buyers in the year 2019. The Charleston housing market is somewhat competitive and will stay competitive in 2019 as well. Charleston Metro is predicted to see major growth among several industries in 2019-2020.

Charleston SC Real Estate Market

Original Photo via Pixabay

Charleston SC Real Estate Market Forecast 2019

As the year 2019 arises, many home buyers and investors have questions regarding future of Charleston real estate market. One positive trend that will affect the real estate for the Charleston market is continued job growth. This ongoing job growth means that there will be a continued demand for housing. On Zillow, the median home value in Charleston is $319,700. Charleston home values have gone up 8.4% over the past year and the Charleston SC real estate market forecast they will rise 2.8% in 2019. The median list price per square foot in Charleston is $208, which is higher than the Charleston-North Charleston Metro average of $168. The median price of homes currently listed in Charleston is $384,990 while the median price of homes that sold is $303,100. The median rent price in Charleston is $1,850, which is higher than the Charleston-North Charleston Metro median of $1,695.

Charleston SC Real Estate Market Forecast 2019

Graph Credits: Zillow.com

Charleston SC Real Estate Market Trend 2018

The Charleston housing market has been on fire in recent years. There have been more buyers than sellers, home prices have risen rapidly, and at the moment there isn’t any sign that will change. Charleston market trends indicate an increase of $14,500 (5%) in median home sales and and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $198, up from $193. Trulia has 738 resale and new homes in Charleston lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Average price per square foot for Charleston was $198, an increase of 3% compared to the same period last year. The median rent per month for apartments in Charleston for Sep 22 to Oct 22 was $1,900. The median sales price for homes in Charleston for Jul 18 to Oct 17 was $299,500 based on 657 home sales.

Charleston SC Real Estate Market Trend 2018

Graph Credits: Trulia.com

As per the real estate company named Redfin, in Charleston, the number of homes on the market rose slightly in October 2018, but is still down from what a balanced market should offer in the region. Meanwhile, sales are almost exactly where they were last year for the first 10 months of this year, suggesting a leveling off, while prices continue to escalate throughout the sought-after Charleston region.

The median price in the Charleston area rose 4 percent in October 2018 to $259,835. For the year so far, the median price stands at $265,236, up 6 percent over the same period in 2017. Redfin reports the median price nationally, among the 71 largest metro areas it tracks, stood at $297,200 in October, up 4.5 percent year over year.

Redfin.com reports that homes for sale in Charleston typically receive 1 offer. Homes sell for about 3% below list price and go pending in around 73 days and hot homes can sell for about list price and go pending in around 44 days. The average sale price of a home in Charleston was $345K last month, up 11.3% since last year. The average sale price per square foot in Charleston is $182, up 8.6% since last year.

Charleston Housing Market Summary

  • Median Sales Price: $299,500 (On Trulia)
  • Price Per Sqft: $198
  • Median Rent Per Month: $1,900
  • Median Household Income: $46,515
  • Home Owners: 54%
  • Single Residents: 45%
  • Median Age: 36
  • College Educated: 45%

There are 1,821 homes for sale, ranging from $11K to $15M on Realtor.com. In November 2018 the housing market in Charleston, SC was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Buyer’s markets are generally more advantageous for buyers rather than sellers. The median list price of homes in Charleston, SC was $309.9K in November 2018, trending up 3.3% year-over-year. The median listing price per square foot was $176.

Charleston Housing Market Trends

Graph Courtesy: Realtor.com®

The median list price of homes in Charleston, SC was $309.9K in November 2018, trending up 3.3% year-over-year. The median listing price per square foot was $176.

On Movoto.com, the median list price in Charleston is $424,900. The median list price in Charleston was less than 1% change from undefined to January. Charleston’s home resale inventories is 973, which decreased 1 percent since undefined 2019. The median list price per square foot in Charleston is $231. undefined 2019 was $235.
Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.

Charleston Real Estate Market Trends

Graph Credits: Movoto.com

According to Neigborhoodscout.com, single-family detached homes are the single most common housing type in Charleston, accounting for 49.36% of the city’s housing units. Other types of housing that are prevalent in Charleston include large apartment complexes or high rise apartments ( 30.29%), duplexes, homes converted to apartments or other small apartment buildings ( 11.96%), and a few row houses and other attached homes ( 7.20%). The most prevalent building size and type in Charleston are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 51.11% owning and 48.89% renting.

Charleston Foreclosures And Bank Owned Properties

Foreclosures will be a factor impacting home values in the next several years. In Charleston 0.2 homes are foreclosed (per 10,000). This is lower than the Charleston-North Charleston Metro value of 0.4 and also lower than the national value of 1.2 The percent of delinquent mortgages in Charleston is 0.6%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Charleston homeowners underwater on their mortgage is 4.8%, which is lower than Charleston-North Charleston Metro at 5.9%.

On RealtyTrac, there are currently 284 properties in Charleston, SC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale in Charleston on RealtyTrac is 683. In November, the number of properties that received a foreclosure filing in Charleston, SC was 21% lower than the previous month and 47% lower than the same time last year. Home sales in Charleston, SC for October 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home in Charleston was $0, or 0% higher than non-distressed home sales.

Charleston SC Home Prices And Appreciation Rates

Charleston real estate appreciated 31.90% over the last ten years, which is an average annual home appreciation rate of 2.81%, putting Charleston in the top 20% nationally for real estate appreciation. Appreciation rates are so strong in Charleston that despite a nationwide downturn in the housing market, Charleston real estate has continued to appreciate in value faster than most communities.  According to NeighborhoodScout, looking at just the latest twelve months, Charleston appreciation rates continue to be some of the highest in America, at 6.75%, which is higher than appreciation rates in 70.14% of the cities and towns in the nation.

Based on the last twelve months, short-term real estate investors have found good fortune in Charleston. Charleston appreciation rates in the latest quarter were at 0.60%, which equates to an annual appreciation rate of 2.42%. Relative to South Carolina, our data show that Charleston’s latest annual appreciation rate is higher than 50% of the other cities and towns in South Carolina.

The website “Chucktownhomes.com” states that there are many unsubstantiated theories about what is happening with Charleston home prices. However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In the Charleston housing market, anything less than 5.5 months will cause home values to appreciate and anything greater than seven months will cause prices to depreciate.

10 Highest Appreciating Charleston Neighborhoods Since 2000: By Neigborhoodscout.com

  1. City Center
  2. Morris St / Coming St
  3. Race St / King St
  4. Rutledge Ave / San Souci St
  5. King St / Cypress St
  6. Citadel Military College of South Carolina / Rutledge Ave
  7. Spring St / Vaughan St
  8. Myers
  9. E Bay St / Cooper St
  10. E Bay St / N Market St

10 Reasons Why You Should Buy Investment Properties In Charleston, SC

The Charleston SC real estate market is often overlooked for “hotter” markets like cities in Florida and Texas. Yet there are a number of factors that make the Charleston housing market an excellent place for investors to look at buying properties. If you are a home buyer or real estate investor, Charleston definitely has a track record of being one of the best long term real estate investments in America through the last ten years. We’re going to outline factors that matter to real estate investors instead of list quality of life issues and tourist attractions that draw people to an area.

Let’s look at the top 10 reasons for buying investment real estate in the Charleston market.

1. Charleston Has a Massive Military Market

Any military base provides a large, mobile population that overwhelmingly rents. Joint Base Charleston combined the Air Force and Naval bases located in Charleston. The joint base is home to a number of military training programs like the nuclear power school and Coast Guard maritime law enforcement academy, as well. There are more than twenty thousand personnel in all, and nearly all of them rent.

2. The Tourist Market Is Big in Charleston

Charleston, once best known for it’s rich history dating back to the mid-seventeenth century, is quickly gaining recognition as a destination resort that caters to discerning travelers. The city sits on the Atlantic coast, the ocean breezes mediating the warm summer climate and keeping winter’s chill at bay. The mild weather and surf helps to explain why around eight million visitors a year pass through the city. If you have a condo or beach house, you can rent it out to tourists at a decent rate. Note that Charleston County’s rules on short term rentals through sites like AirBnB are more relaxed than that of Charleston proper.

3. The Proportionally Large Student Market

Charleston, South Carolina was founded around 1670. The College of Charleston serves around 11,000 students. Charleston Southern University is a private university located in the city. The Medical University of South Carolina is the only medical school in the area, attracting students from across the region. Trident Technical College is the local community college. On top of that are the military educational programs. This creates a disproportionately large student market for a city this size. Yet the Charleston housing market is better than that of the average college town, since the value of rental real estate here isn’t dependent on the appeal of a particular college.

4. The Booming Job Market in Charleston, SC

The Charleston SC real estate market is experiencing a boom because the job market is likewise booming. Bosch and Boeing are hiring in the area. Mercedes Benz and Volvo both opened car manufacturing plants in the area, and that’s aside from the military contractors in the area. This helps explain why the unemployment rate in Charleston is less than 3%, a half point below the state average and nearly a full point below the national average.

The availability of jobs brings many here from across the state. Industry growth shows no signs of slowing down, and property values are expected to continue to rise for the foreseeable future. As workers move into the area, following the jobs or looking for career advancement opportunities, local inventory will most likely continue to shrink.

5.This Is a Low Tax State

South Carolina’s tax burden is one of the lowest in the country. Income taxes are tenth lowest out of the 42 states with an income tax. This is partially due to the 7% tax rate being offset by generous deductions and exemptions, resulting in a roughly 3% real tax rate.

6. South Carolina is Landlord Friendly

South Carolina like many Southern states is very landlord friendly. There are no limits on late fees, and there are no state laws on payment grace periods. The state doesn’t require a license to be a landlord, though a license is required to rent a property out short-term via AirBnB. South Carolina makes it rather easy to evict someone for non-payment of rent, committing violent acts and engaging in illegal activities in the unit.

7. Low Average Wages Result in a Large Rental Population

About 40% of the Charleston population rents, somewhat higher than the third of Americans who rent. There is a shortage of affordable housing in the Charleston SC real estate market, since half of the population spends more than half their income on rent. Average income in the area is around 33,000 a year, while the average apartment rents for a thousand a month. While there are a number of multifamily units coming onto the market, many of these are luxury units, not the cheap housing many residents need. This opens the door to decent returns if you turn a single family home into several rentable units.

8. Home Appreciation Is Strong

When demand is strong but supply is limited, home values go up. Homes in the Charleston SC real estate market have gone up nearly 10% year over year. Appreciation over the past 10 years – including the Great Recession that only really ended in 2016 – is 31%. Expect appreciation to continue, since the population here is growing three times the national average.

9. Rental Rates Are Rising

In 2015, the Charleston housing market hit a top ten list of cities with the fastest growing rental rates. Rent increases hit 16.5% in 2015 as people moved to the area to work for Boeing and Mercedes Benz. While new units are coming onto the market, strong demand is keeping rental rates going up faster than the rate of inflation.

10. Home Values Are Reasonable Compared to Hot Markets

The median price of homes in the Charleston SC housing market is $310,000. However, prices vary widely across the Charleston SC housing market. In the Midlands, you can find homes with price tags averaging $160,000. In desirable parts of Charleston, expect to pay over $300,000. In downtown Charleston, valuations of $500 per square foot are not uncommon, especially where there is a view of the water. Move inland from Charleston, and you’ll find suburbs with more expensive luxury homes and cheaper detached single family homes. If you want to buy new homes, Summerville and Goose Creek are expected to see 50% to 60% growth over the next ten years.

Charleston SC Real Estate Investment: Summary

Charleston Housing Market

Photo via Pixabay

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Charleston, SC. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. The Charleston housing market is certainly benefiting from a local economy that has gained worldwide attention.

The Charleston real estate market contains multiple, sizable renting populations aside from a growing workforce that cannot afford to buy local single family homes. The strong job market and relatively limited space is driving up rents and home values. According to report published on Charlestonrealestate.com, the feeling is that the Charleston real estate market will have an adequate demand for housing in 2019. However, increased inventory and lower buying power will result in lower sale prices and signify a buyer’s market. A buyer’s market indicates that buyers have greater control over the price point.

Which Cities/Markets Are Good For Real Estate Investing In 2019?

Apart from the Charleston market, you can invest in Raleigh, NC. The Raleigh NC real estate market is landlord friendly, contains several large populations of renters, and an economic future that ensures long-term growth in housing demand and rents. Owning a piece of Raleigh real estate is a great achievement for many people. Homeowners in Raleigh continue to see their homes appreciate in value because they are in such high demand. From Millennials moving to the area to retirees living here, Raleigh continues to be a great place for people from from all walks of life. Whether you are a Baby Boomer or a Millennial, you will find living in Raleigh is a unique experience. From being a leader in the job market to being a hub for entertainment, it’s pretty clear why many people love to call Raleigh home.

Another market that we suggest is the Dayton, Ohio. The Dayton housing market is one of the best deals in the Midwest. It balances affordable properties with strong future growth, a large rental market and stable property values, low carrying costs and decent ROI. Single-family real estate in Dayton, Ohio is currently selling for around $86 per square foot (As per Trulia).

The average home size is roughly 1,350 square feet.  The median sales price in Dayton has spiked to $125,000 and the median rent for apartments to $850. Downtown Dayton and its suburbs are doing a nice job of incentivizing new business to come into the area. Existing business are also benefiting from positive housing market trends in Dayton. While the overall Dayton housing market is booming, downtown Dayton has struggled with crime from time to time. The good news is that the city has steadily reduced crime.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. 


References

Population stats
https://en.wikipedia.org/wiki/Charleston,_South_Carolina

Military market
https://en.wikipedia.org/wiki/Charleston,_South_Carolina_metropolitan_area

Tourism
https://www.postandcourier.com/business/real_estate/no-recession-in-immediate-charleston-real-estate-forecast-but-there/article_eef744be-e9c9-11e8-97fe-0f7b13f0fc49.html
https://www.postandcourier.com/news/charleston-county-s-new-short-term-rental-rules-much-less/article_136e930e-6b23-11e8-aaf8-ef74a283d5b9.html

Job market
https://www.postandcourier.com/business/real_estate/no-recession-in-immediate-charleston-real-estate-forecast-but-there/article_eef744be-e9c9-11e8-97fe-0f7b13f0fc49.html
https://www.deptofnumbers.com/unemployment/south-carolina/charleston/

Taxes
https://www.thestate.com/news/politics-government/article101629497.html

Landlord friendly                                                                                            https://www.avail.co/education/laws/south-carolina-landlord-tenant-law

Low wages, rental market
https://www.postandcourier.com/news/charleston-s-housing-crisis-is-on-pace-to-mirror-san/article_569e7cca-a7a1-11e7-828a-2fc7072dbd27.html
https://www.bestplaces.net/economy/city/south_carolina/charleston
https://www.cbsnews.com/media/9-u-s-cities-with-the-biggest-rent-hikes/

Appreciation
https://www.bestplaces.net/housing/city/south_carolina/charleston              https://chstoday.6amcity.com/affordable-housing-in-charleston-sc-2018

Home values
https://www.bestplaces.net/housing/city/south_carolina/charleston
https://www.postandcourier.com/business/south-carolina-home-prices-on-the-rise-but-below-national/article_d7f0d94e-b381-11e7-a1e6-ff4ca35af7b5.html
http://www.live5news.com/story/31247521/charleston-rental-prices-rise-as-millennials-move-in/

taxes
https://www.thestate.com/news/politics-government/article101629497.html

Student market
https://www.accreditedschoolsonline.org/south-carolina/charleston-sc/

Rental rates
https://www.cbsnews.com/media/9-u-s-cities-with-the-biggest-rent-hikes/

Market Trends And Forecast                                                  https://www.redfin.com/city/3478/SC/Charleston/housing-market                          https://www.zillow.com/Charleston-sc/home-values https://www.realtytrac.com/statsandtrends/foreclosuretrends/sc/charleston-county/charleston https://www.movoto.com/charleston-sc/market-trends          https://www.neighborhoodscout.com/sc/charleston/real-estate                https://www.movoto.com/guide/charleston-sc/charleston-real-estate-market-trends https://www.trulia.com/real_estate/Charleston-South_Carolina https://www.realtor.com/local/Charleston_SC/housing-market https://www.postandcourier.com/business/real_estate/home-price-growth-slows-nationally-but-not-in-charleston/article_9cd2f0c8-edc2-11e8-bcf7-f3bce6ec2317.html https://www.charlestonrealestate.com/blog/predicting-the-future-of-the-charleston-real-estate-market https://www.chucktownhomes.com/blog/will-charleston-sc-home-prices-continue-to-increase


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