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.
How is the Charleston Housing Market Doing in 2024?
Charleston Home Prices
What is the Average Home Price?
As of July 2024, Redfin reports that the average home price in Charleston is approximately $647,000, reflecting a robust increase of 17.6% from the previous year. The area continues to experience a notable uptick in property values, making it a prime market for homeowners looking to capitalize on their investments.
Median Sales Price
The median sales price in Charleston stands at $567,674, a testament to the market's upward trajectory. This figure also represents a significant year-over-year increase, underscoring the strong demand for homes in the region.
Median List Price
According to Zillow, the median list price in Charleston is $575,000. This indicator provides insights into seller expectations and the overall market’s pricing trends.
Are Home Prices Dropping?
Contrary to some markets across the United States, Charleston has not witnessed a drop in home prices. Instead, the market exhibits resilience with prices steadily climbing. This trend aligns with Charleston’s growing popularity and economic development.
Charleston Home Sales
How Did the Housing Market Perform in the Last Month?
Recent data reveals that the Charleston housing market has shown a consistent performance. While year-over-year comparisons indicate growth, monthly fluctuations are evident, influenced by seasonal trends and economic factors.
How Many Homes Were Sold?
In the past month, Charleston saw the sale of approximately 300 homes. This robust number points to a healthy market with active buyer participation.
Did Home Sales Drop or Rise Compared to the Same Month Last Year?
There was a slight reduction in home sales compared to the same month last year, with a 5% decline. This marginal drop, however, does not signify a diminishing market but rather reflects short-term variances.
Charleston Housing Supply and Demand
Is the Charleston Housing Market Cooling?
Signs suggest that the Charleston housing market is experiencing moderation after an extensive period of acceleration. The increase in home prices is starting to level off, pointing towards a potential stabilization.
Is the Charleston, SC Housing Market Overvalued?
Debates around the valuation persist, but many experts believe the market is not significantly overvalued. The growth in prices corresponds with economic fundamentals such as job growth, population influx, and infrastructural improvements.
Is Charleston a Seller's Real Estate Market?
Indeed, Charleston currently favors sellers. Several factors contribute to this:
- Rising Home Prices: With property values climbing, sellers stand to gain substantial profits from the sale.
- Low Inventory: The relatively low inventory compared to demand creates a competitive environment, benefitting sellers.
- Buyer Demand: Driven by Charleston's attractiveness as a place to live, demand remains robust. Buyers are eager to secure properties, often willing to pay a premium.
In a seller's market, homes move quickly. For those considering listing their property, now might be an ideal time given the favorable conditions. However, buyers should be prepared to act swiftly and possibly face bidding wars.
Charleston Housing Market Predictions
The Charleston housing market has been a focal point for investors, homeowners, and real estate analysts due to its vibrant economy, rich history, and desirable living conditions. Here are the market predictions for Charleston, South Carolina, focusing on the forecast for June 2024, the next quarter, and extending into 2025. We will analyze the potential for either a market crash or boom based on various economic indicators and expert insights.
Market Forecast for June 2024
According to Zillow, as of June 2024, the Charleston housing market is expected to experience a slight growth of 0.2%. This modest increase reflects the steady demand for housing in the area, driven by factors such as a growing population, a strong local economy, and the continued appeal of Charleston as a desirable place to live. The city's historical charm, coastal lifestyle, and robust job market contribute to this positive outlook.
Next Quarter Predictions
Looking ahead to the next quarter, which includes July and August 2024, the forecast suggests a minor decline of -0.1%. This slight dip could be attributed to seasonal fluctuations in the housing market, where the summer months might see a temporary slowdown in transactions. However, it is essential to note that this decrease is not significant enough to indicate a major downturn. Instead, it represents a typical ebb and flow within a healthy housing market.
Long-Term Outlook for 2025
The long-term forecast extending to May 2025 predicts another slight decline of -0.1%. This projection indicates a period of stabilization rather than dramatic growth or decline. Several factors could influence this trend, including interest rates, economic conditions, and local developments. While the forecast shows a minor decrease, it does not suggest an impending market crash. Instead, it points towards a balanced market where supply and demand are relatively aligned.
Factors Influencing the Charleston Housing Market
Economic Growth
Charleston's economy has been growing steadily, with significant contributions from sectors such as technology, manufacturing, tourism, and healthcare. The continued economic expansion supports job creation and attracts new residents, thereby sustaining the housing demand.
Population Growth
The population of Charleston has been on the rise, driven by both natural growth and migration. The city's appeal as a coastal destination with a high quality of life attracts people from other states, bolstering the housing market.
Interest Rates
Interest rates play a crucial role in the housing market. Current trends in mortgage rates will significantly impact buyer affordability and, consequently, housing demand. If interest rates remain low, they will likely support continued activity in the housing market.
Local Developments
Ongoing and planned infrastructure projects, such as road improvements, new commercial developments, and community enhancements, contribute positively to the housing market. These developments increase the attractiveness of Charleston as a place to live and invest.
Will the Charleston Housing Market Crash or Boom?
Considering the predictions and the underlying factors, the Charleston housing market is unlikely to experience a dramatic crash or boom in the near future. The slight fluctuations in the market, as forecasted, indicate a period of stability and gradual adjustment. While some seasonal and economic factors may cause minor short-term variations, the overall trend suggests a balanced market.
For those looking to invest in the Charleston housing market, this period of stability offers an opportunity for careful and strategic investment. Homeowners can expect their property values to remain relatively stable, without the fear of a significant market downturn. Conversely, the market may not see rapid appreciation, implying that long-term investments might yield moderate returns.
Conclusion
The Charleston housing market predictions for June 2024, the next quarter, and 2025 suggest a stable and balanced market with minor fluctuations. The slight growth in June 2024, followed by minimal declines in the subsequent months, reflects a healthy market adjusting to various economic and seasonal factors. While a dramatic boom or crash is unlikely, the stability in the market provides opportunities for both buyers and sellers to navigate the Charleston real estate landscape with confidence.
Should You Invest in the Charleston Real Estate Market?
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.
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