Let’s talk about the 2024 real estate market in Charleston, South Carolina. Everyone wants to know what is going to happen, where are prices going, what’s happening with interest rates.
While we don’t have a crystal ball, we do have some pretty good data that we can share with you to help you evaluate your real estate goals for this year.
The number one question we get asked is what is happening with interest rates. Interest rates have come down from their high as you can see in the graph below. They are currently hovering in the high 6s but we know lenders that are able to get them down a little bit more. They are expected to potentially come down more in possibly Q2 but of course not without fluctuations! If they come down, more buyers will appear. Be Ready.
PRO TIP: Get pre-approved now so that when they do and you find a house, you can lock in immediately!
Here in Charleston, it looks like the readjustment period after the crazy whirlwind of 20221-2022, is mostly behind us. We did well, Charleston! Total sales are down but prices held and are even up! We anticipate as much as 5% home price appreciation this year.
PRO TIP: Buyers, don’t wait on the sidelines waiting for foreclosures, declining prices or more homes to come on the market. Be ready. When the right house for you comes on the market – it’s the right house. Jump.
Spring and Summer last year had highest amount of home sales (see graph below). And it will happen again this spring and summer as it always does. If interest rates lower, it will be busier. The trend on home sales is on the rise again and the market isn’t declining.
PRO TIP: Spring market starts in February. Have your ducks in a row, be educated and have an amazing agent by your side to get you the home you want!
Let’s talk new construction homes. There’s still not a lot of inventory out there to buy. People are holding on to their houses and we are a desirable market. New home sales accounted for 50% of the sales last year. A decline in interest rates may spur more sellers to enter the market, but we still anticipate new home sales to account for a large portion of overall home sales.
PRO TIP: Don’t go into a new home community without your agent!! Even though the onsite agent for the builder is there and knowledgeable, they represent the builder!!! Not you!! Call your agent. They represent YOU; there’s a lot to know about buying a new home.
Why is buyer demand still relatively strong in our area? The map below says it all! The SE is where people want to be. CHARLESTON is where people want to be. This influx of people is anticipated through 2040.
PRO TIP: Work on refining your real estate goals with a trusted agent so that you know when & how to enter the market as a buyer or seller during this time of anticipated demand for our area.
So as we move further into 2024, we will keep a close eye on interest rates, and on the Consumer Price Index report due in February which will impact those rates. Homes sales will rise this Spring and Summer, as is normal, and could be spurred on by interest rate reductions. Plan on continued home price appreciation and buyer demand as Charleston remains an attractive location for buyers within and outside our area.
As always, we are here to be your resource for all things real estate. Please don’t hesitate to involve is helping you evaluate & plan your real estate goals for the coming year – we love to help!
Lauren & Cambron | Lauren Zurilla & Associates