Charleston SC Real Estate Market Update - November 2016
Our real estate market here continues to do very well. New construction is prominent in several MLS areas including Johns Island and Mount Pleasant. However, new construction seems to be making its biggest strides in the Jedburg/Ridgeville area near the new Volvo plant that is under construction.
The Nexton community (developed by Westrock) is going to dwarf the already sizable Cane Bay subdivision. A new exit ramp is being built off I-26! Overall, the Tri-county areas are up 10.5% in number of transactions (year-to-date) over 2015. 2016 will likely record over 16,000 transactions , making this the 2nd busiest year ever.
Median sales price is up 5.1% to almost $244,000. I hear many people concerned that this may be too inflated and that we may be experiencing another bubble in the housing market. Although a market correction is expected next year at a national level, the strong economic (job creation) fundamentals, strong retirement & second home demand and tighter lending practices make a "bubble" unlikely to happen in Charleston. We may see a smaller market "correction" (which is normal for a cyclical market), but we do not believe we'll lose 30%-40% of the value like we did in 2007-2010.
In addition, there are still several MLS areas whose median $/sqft values have still not returned to the 2006 levels, most notably in Summerville and Goose Creek. Plus a 5.1% increase in prices is not that much more than the national average of 4%, especially considering that we are a coastal town with so many good things happening economically.
Our future is looking good!
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