2018 Year End Review

Reflecting on the 2018 housing market, there were many headlines that affected Charleston area home values, transactions, and construction alike. From the passage of an ordinance by the Town of Mt. Pleasant limiting future residential units, to interest rate increases, 2018 certainly provided plenty of unknowns. Even through a volatile 2018, the Charleston area real estate market continued to sustain its solid economic foundation.

Moreover, while we have seen slowing in buyer activity, it is not as pronounced as the housing market slow down experienced nationally. More importantly, this pull-back in the market is just that – a pull-back, where consumers have become accustom to higher interest rates and general market volatility, and thus, the market simply “taking a breather”, while creating a more cautious buyer.

One positive trend that will affect the upcoming year in real estate for the Charleston market is continued job growth. The Charleston Metro Area is currently seeing 28 people moving here each day. The forecast is for 22,000 net new jobs over the course of the next two years. This ongoing growth means that there will be a continued demand for housing. However, the demand is relative to the number of people who can afford to buy a home. Factors on the national level also influence the local real estate market – as interest rates are commonly reviewed as a predictor. Interest rates rose over the course of 2018 and are predicted to continue to rise throughout 2019, but at a less accelerated rate. That being said, we remain in an historically low interest rate environment, thus providing inexpensive costs of borrowing money.

Looking ahead, data shows that the Charleston real estate market will most likely experience moderate to incremental growth in 2019 as adequate demand drives transactions. More specifically, we are at the very beginning of a “Buyers Market”, however; Buyers are not quite aware just yet. Therefore, expect 2019 to be a year where buyers are in the driver’s seat in certain transactions and sellers may have to make some creative concessions to sell a property for top dollar. Therein lies the value of an experienced real estate brokerage such as Novellus, that can negotiate on your behalf in a manner which unlocks hidden value, and gets the most for your money.

Finally, buyers and sellers can be assured that in any market the Novellus Real Estate team serves as your best resource in town. We will provide current and accurate resources, advice, and guidance in buying and selling a home in Charleston. While no one can predict the future, working with a top real estate company and agent is the best move every time.

Peter B. Farag, Esq.
Broker in Charge

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Charleston Market Update – October 2018

Charleston’s already low seasonly adjusted home inventory is expected to come early this year.

It’s no secret Charleston area inventory is low, but WOW! Every year we see seasonal inventory ups and downs. More buying and selling during the summer, less during the winter. However, this winter trend appears to be coming early this year. Therefore, according to our research, expect to see less than 5,000 homes for sale in Charleston come January 2019.

Annual Market Trends
Charleston area seasonal inventory (2015 – 2018)

This coupled with Charleston achieving another highest in history median sales price point of $276,500, is continuing to make Charleston quite a dynamic market.

A correction on the horizon?

Currently, Downtown prices are the lowest in over two years going back to 2015 numbers where the median sale price was just over $450,000.

Monthly Charleston statistics.

Below: October 2018 (compared to October 2017)

  • Homes for Sale: 5,388 (-3.9%, -9.2%)
    …continually dwindling inventory of homes for sale.
  • Median Home Price: $276,500 (+5.7%, +8.2%)
    …highest ever.
  • Price Per SqFt: $142 (+2.9%, +7.6%)
  • Days on Market: 18 (+20.0%, -18.2%)
    …a little leveling off.

Average home price by area.

Links to homes listed by area:

  • James Island & Johns Island: $341,000
  • Mt Pleasant: $447,900
  • North Charleston: $211,400
  • Peninsula: $456,000
  • Summerville: $240,100
  • West Ashley: $260,700

If you have any questions, real estate related or otherwise, please don’t hesitate to contact the Novellus team.

* Data provided by MLS