Charleston, SC Real Estate Market Update
In general, the Charleston, SC real estate market here is booming and 2017 will likely be the busiest year we’ve ever had, so far the market is up by 8.9% over 2016, which was our second busiest year. Median sales price is also up 4.4% to an all time high of $250k. The economy is roaring along, with only about 3.1% unemployment rate.
Demand for the area as a whole is still strong: Manufacturing jobs are being created - with Boeing, Volvo and Mercedes Benz leading the pack. BMW in Greenville is also expanding its plant and this will bring more business to our port here in Charleston. Riding over the Ravenel Bridge you can see the rows of shiny new cars waiting to be exported (700-1,000 cars are unloaded each day from trains). When Volvo’s Ridgeville plant is up and running, they expect to ship out 30,000 of the 65,000 new vehicles manufactured in 2018 through the port.
Charleston has also become a favorite for tech startups. We have incubators all over town where entrepreneurs are working on the next hot technology, Charleston is now getting to be known internationally as “Silicon Harbor” .
However, real estate is “hyper-local” so there are some sub-markets (especially in the higher price points) that are showing some signs of fatigue. Daniel Island and Park West in Mount Pleasant (homes above $450K) are two of these markets.
For Daniel Island, the Months of Inventory index has increased from 2.4 months in December 2015 to 6.1 months in May 2017, while in Park West above $450K it has moved from 4.9 months in January 2016 to 11.8 months in May 2017 (see graph above).
In these markets sellers are experiencing longer selling times and must expect tougher selling conditions. Pricing new listings strategically for these market conditions will be of utmost importance to be able to sell homes effectively and for top market prices.
To receive strategic pricing advice for your home, please contact us on 843-900-0155.