It may feel like we just kicked off fall but many are curious about what the winter and holiday season is going to look like for the housing market here in Charleston, South Carolina. With inflation and economic concerns many are curious what all this means for the real estate industry.
It’s no secret that buyer confidence is dropping. Budget concerns, rising cost of living and increased interest rates are causing home buyers to shy away for the time being in Charleston and beyond. For the 12-month period spanning October 2021 through September 2022, Pending Sales in the Charleston-Trident region were down 13.2% overall, with just 268 homes sold in September this year, down from 442 last year.
One factor we’ve been harping on since Covid crazy was the massive low inventory in the greater Charleston housing market. In September market-wide, inventory levels were UP 21.7%. The property type that gained the most inventory was the Single Family segment, where it increased 30.7%! While this is a good increase we are still below the average inventory levels for our area keeping a good supply/demand push-pull.
What isn’t changing is home prices. Prices in Charleston area are still up! In September Charleston home prices were up 14.5% compared to last year; and it’s not affecting market time. Homes in Charleston sold after 48 days on the market compared to 46 days last year for September 2022 with most selling about 1% below asking (gone are the days of bidding wars and outrages offers above asking).
So what do we think this all means?
Firstly, the desire to live in Charleston is not waning. Demand is a major factor in the housing market. While buyers are becoming fearful of the market, home prices and interest rates, Charleston and surrounding counties are still strongly desired locations for all types of home buyers- which keeps our market steady.
We may see a slight decrease in home prices and a steadier balance of inventory/demand going into the holidays, however Spring will most likely bring a bounce back in pricing and a slight tip back to a strong sellers’ market.
For buyers and sellers, alike, timing is your key. My biggest advice is to find a good realtor who is on your side and will keep an active eye out for your best interest. If you’re starting your home buying or selling journey and want to chat – please reach out. I would love to assist you on your next adventure!