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. Let's dive in and explore what the Charleston housing market has to offer.
The Charleston housing market has been steadily growing and showing signs of competitiveness in recent years. In this blog post, we will take a closer look at the latest housing market trends and statistics, including median sale price, sale-to-list price ratio, and migration and relocation trends.
Charleston Housing Market Update
According to Redfin, the Charleston housing market is somewhat competitive. Homes in Charleston receive 2 offers on average and sell in around 49 days. The median sale price of a home in Charleston was $520K last month, up 4.0% since last year. The median sale price per square foot in Charleston is $299, up 3.1% since last year.
In March 2023, Charleston home prices were up 4.0% compared to last year, selling for a median price of $520K. On average, homes in Charleston sell after 47 days on the market compared to 38 days last year. There were 310 homes sold in March this year, down from 436 last year.
The overall cost of living in Charleston is 2% lower than the national average. Charleston's median sale price is 30% higher than the national average. To compare other locations to the Charleston and U.S. housing market, enter a city, neighborhood, state, or zip code into the search bar.
Competitiveness of Charleston Housing Market
Charleston is somewhat competitive. Homes sell in 49 days. The Redfin Compete Score rates how competitive an area is on a scale of 0 to 100, where 100 is the most competitive. Calculated over the last 3 months, some homes get multiple offers. The average homes sell for about 2% below the list price and go pending in around 49 days. Hot homes can sell for around list price and go pending in around 32 days. The sale-to-list price for all home types in Charleston is 98.4%.
Across the nation, 0.51% of homebuyers searched to move into Charleston from outside metros. Washington homebuyers searched to move into Charleston more than any other metro followed by New York and Boston. 71% of Charleston homebuyers searched to stay within the Charleston metropolitan area. Asheville was the most popular destination among Charleston homebuyers followed by Columbia and Greenville.
People are moving to Charleston from inbound metros such as Washington, DC, New York, NY, and Boston, MA. Conversely, people are leaving Charleston for outbound metros such as Asheville, NC, Columbia, SC, and Greenville, SC.
Charleston Real Estate 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.
The Charleston real estate market has seen significant growth over the past year with an 8.1% increase in average home value. As of March 31, 2023, the typical home value in Charleston was $495,993, and the median sale-to-list ratio was 0.981. The market also saw 12.1% of sales going over list price, with 66.9% of sales going under list price, and a median of 13 days to pending.
Charleston-North Charleston MSA, located in South Carolina, is a metropolitan area that includes Charleston and Berkeley counties. Known for its rich history, beautiful beaches, and vibrant culture, this area has become a desirable place to call home
Looking forward to the next year, the Charleston-North Charleston Metropolitan Statistical Area (MSA) is expected to continue its growth trend with a 2.2% market forecast increase in home values by March 31, 2024. The average home value in Charleston-North Charleston is currently $402,017, a 7.5% increase over the past year. The median sale to list ratio in this area was 0.986 as of February 28, 2023, with 15.7% of sales going over list price and 61.2% going under list price. The median days to pending in Charleston-North Charleston was 17 as of March 31, 2023.
The Charleston-North Charleston MSA is expected to maintain its strong demand in 2023-2024 due to its thriving economy, beautiful coastal scenery, and desirable lifestyle. However, it is worth noting that supply shortages and rising interest rates may impact the market. The pandemic has also had a significant impact on the real estate market, and it is uncertain how ongoing public health concerns and economic conditions may affect the market in the future. Overall, the Charleston real estate market is expected to remain a solid investment opportunity in the coming year.
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.
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*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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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/
