The Charleston, SC residential real estate market is behaving like most markets in the U.S. - supply is very low and demand is very high, which causes extreme buyer competition and rising home prices.
However, real estate is "hyper-local" and there are some differences between different areas of town.
The following table illustrates the "Months of Inventory" (also called "Months of Supply") index for the different MLS areas in our metro area (click image to view full size).
[We define a "neutral" or "balanced market one with 6 months of inventory. In such a market the same number of homes come on the market as the number that go under contract, so supply and demand are balanced. By comparison, most areas in Charleston now have under 1/2 month of inventory! This means that most homes are going under contract in 10-15 days or less. The SLOWEST area is Downtown Charleston below the crosstown, with 4 months of inventory, slower, but still a "Sellers' Market"!]
There is a lot of speculation about what caused this surge of demand and reduction in supply during this pandemic. We believe a combination of factors has created this "perfect storm":
- Very low mortgage interest rates
- People working remotely and/or children studying from home - need a quiet office/study area
- Urban-to-suburban migration (people wanting more space and fewer people around them)
- Baby boomers retiring/downsizing
- North-to-South (and West-to-East) migration (driven by weather, home prices, lifestyle and property taxes)
- Would-be sellers afraid of having people walk through their home (potential COVID exposure)
- Where would we go? Sellers are afraid of becoming buyers in this highly competitive market and not being able to purchase their next home
- Lower than required new construction starts
- Increased construction costs
As professional Realtors, we have to become creative to be able to better service our clients. For Buyers, we are finding off-market properties and helping them structure winning offers. For Sellers, we are pricing and marketing homes strategically to entice multiple offers and get the highest market prices.
Call us today on 843-900-0155 to get started!