The Charleston real estate market is known for its historic homes, stunning waterfront properties, and vibrant neighborhoods. With a range of options from condos to single-family homes, there's something for everyone in this dynamic market. The Charleston housing market has been experiencing significant growth and competitiveness in recent years.
With rising median sale prices and decreased days on the market, it's an attractive area for both buyers and sellers. In this blog post, we'll delve into the latest housing trends, explore the competitive nature of the market, examine migration and relocation patterns, learn about the local schools, and understand the impact of natural hazards on homes in Charleston.
Current Charleston Housing Market Trends
According to Redfin, in October 2023, Charleston's housing prices surged by 13.5% compared to the previous year, reaching a median price of $590,098. This substantial increase indicates a robust and active real estate market in the city. Homes in Charleston are selling, on average, after 46 days on the market, a notable improvement from 49 days the previous year.
Charleston is somewhat competitive. Homes are often subject to multiple offers, with some properties selling for about 2% below the list price and going pending in approximately 43 days. This competitiveness is reflected in the overall market dynamics, contributing to the city's median sale price being 43% higher than the national average.
Charleston's allure is not only reflected in its real estate market but also in its popularity among homebuyers from other metros. According to Redfin's migration data, 0.48% of homebuyers nationwide searched to move into Charleston from outside metros. Washington, DC, New York, and Chicago top the list of cities contributing to Charleston's inbound migration.
On the outbound side, Columbia, Asheville, and Greenville are the top destinations for Charleston residents leaving the city. The migration trends provide a glimpse into the city's desirability and appeal to individuals seeking a new place to call home.
Sale-to-List Price Ratios
Examining the sale-to-list price ratios further emphasizes Charleston's competitive market. In 2023, the ratio stands at 98.5%, indicating that, on average, homes sell for nearly the full list price. This statistic is crucial for both buyers and sellers to understand the negotiation dynamics in the current market.
Charleston Housing Market Forecast 2023-2024
As the interest rates rise, many home buyers and investors have questions regarding the future of the Charleston real estate market. One positive trend that will affect real estate in the Charleston market is continued job growth. This ongoing job growth means that there will be a continued demand for housing. The increase in Charleston home 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.
According to data by Zillow, the Charleston housing market continues to exhibit robust growth, with the average home value reaching $530,720, marking a substantial 6.3% increase over the past year as of October 31, 2023. Homes in Charleston are in high demand, typically going pending in an impressively short 9 days. The market, as of October 31, 2023, boasts a 734 for-sale inventory and 293 new listings, showcasing the dynamic nature of the real estate landscape.
Key Metrics:
- Median Sale Price (Sep 30, 2023): $535,917
- Median List Price (Oct 31, 2023): $660,633
- Median Sale to List Ratio (Sep 30, 2023): 0.995
- Percent of Sales Over List Price (Sep 30, 2023): 27.2%
- Percent of Sales Under List Price (Sep 30, 2023): 51.0%
Charleston MSA Housing Market Forecast (2023-2024)
In terms of the Charleston Metropolitan Statistical Area (MSA), the forecast indicates continued positive growth. As of October 31, 2023, the region is anticipated to experience a 0.3% increase in housing values by November 30, 2023, followed by a 0.1% rise by January 31, 2024. Looking further ahead, the forecast for October 31, 2024 suggests a 0.5% increase in home values. This forecast highlights the sustained attractiveness of the Charleston MSA real estate market.
The Charleston Metropolitan Statistical Area (MSA) encompasses counties in South Carolina and serves as a key economic and cultural hub. As of October 31, 2023, the MSA housing market is sizable and vibrant, reflecting the area's desirability. Homebuyers and investors alike are drawn to the diverse real estate opportunities, contributing to the region's positive forecast and the ongoing growth of its housing market.
Potential Factors Influencing the Forecast
The Charleston housing market forecast is influenced by a variety of factors that shape the real estate landscape. Some of the potential factors influencing this forecast may include:
- Economic Conditions: Economic stability and growth in the Charleston area can impact housing demand and pricing.
- Population Trends: Changes in population, including migration patterns, can affect the demand for homes.
- Interest Rates: Fluctuations in mortgage interest rates can influence the affordability of homes for buyers.
- Local Development: New construction and development projects can impact housing supply and demand.
- National Trends: Broader national economic and housing market trends can have ripple effects on Charleston's market.
It's important for both buyers and sellers to keep an eye on these factors and stay informed about the evolving Charleston housing market to make informed decisions.
Charleston Real Estate Investment Overview
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. Charleston, South Carolina, is a coastal city with a rich history, vibrant culture, and thriving economy. The city's real estate market has seen steady growth in recent years, making it an attractive option for real estate investors. Here are some key factors to consider when deciding whether to invest in Charleston real estate.
Population & Demographics
Charleston's population has grown by more than 14% in the past decade, and it is projected to continue to increase in the coming years. The city's demographics are also attractive for real estate investment, with a relatively young and highly educated population. This demographic shift has led to an increased demand for housing, making the Charleston real estate market an excellent investment opportunity.
CHARLESTON SC MSA COUNTY POPULATION ESTIMATE, 2021 (Source: U.S. Census Bureau, 2022)
- Berkeley County: 236,701
- Charleston County: 413,024
- Dorchester County: 163,327
- Charleston Metro Area: 813,052
Charleston Has a Massive Military & Student 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 is more than twenty thousand personnel in all, and nearly all of the rent.
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.
The Tourist Market Is Big in Charleston
Charleston, once best known for its 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 help 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.
The Booming Job Market in Charleston, SC
Charleston's economy has seen tremendous growth in recent years, with the city's job market booming in particular. The city is home to a diverse range of industries, including healthcare, aerospace, tourism, and manufacturing. Major employers include Boeing, the Medical University of South Carolina, and the College of Charleston. The city's strong economy and job market make it a great place to invest in real estate.
This Is a Low Tax State
South Carolina is a low-tax state, which is a significant advantage for real estate investors. The state has one of the lowest property tax rates in the country, which can help investors maximize their returns. Additionally, the state has no inheritance or estate tax, making it an attractive option for long-term investment.
South Carolina is Landlord Friendly
South Carolina is known for being landlord-friendly, with laws that protect landlords and their property rights. The state has a relatively low tenant protection index, which means landlords have more control over their properties. This can make investing in Charleston real estate less risky than in other markets.
Conclusion
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 are driving up rents and home values.
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 has 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 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.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, 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 the profitability of your real estate investments.
References
- https://www.zillow.com/Charleston-sc/home-values
- https://www.neighborhoodscout.com/sc/charleston/real-estate
- https://www.redfin.com/city/3478/SC/Charleston/housing-market
- https://www.realtor.com/local/Charleston_SC/housing-market
- https://en.wikipedia.org/wiki/Charleston,_South_Carolina_metropolitan_area
- https://www.deptofnumbers.com/unemployment/south-carolina/charleston/
- https://www.thestate.com/news/politics-government/article101629497.html
- https://www.avail.co/education/laws/south-carolina-landlord-tenant-law
- https://www.bestplaces.net/economy/city/south_carolina/charleston
- http://www.live5news.com/story/31247521/charleston-rental-prices-rise-as-millennials-move-in/
- https://www.accreditedschoolsonline.org/south-carolina/charleston-sc/
