June 2025 Market Update
The word of the summer is unpredictability! We are seeing supply increases paired with price drops and longer days on market. We are also seeing multiple offers above asking price on updated houses that show well. Some listings are getting 8 offers in 2 days while others sit for weeks with zero showings!
Some market stats point to a strong "sellers" market: April sales were up over April 2024. Our median sales price hit a record high of $440,000. We lack inventory to meet demand as Charleston continues to attract new residents, industries and accolades.
Other stats point to a softening: 10% price reductions, longer days on market and inventory stacking up. We have roughly 3.2 months of inventory, which is closer to the 5 month supply we need for a balanced market than we've been in years. There are pockets of inactivity in neighborhoods that have always been highly desirable.
What else? Mortgage rates around 7% are here to stay for 2025. Buyers in our local market have accepted that, but they want to negotiate harder to overcome that additional expense. Unless a listing is brand new on the market, buyers are writing contracts with a slew of contingencies and special requests. We're not seeing buyers settle for a home that doesn't work or a price that isn't justified, which means there's less buyers remorse than in recent years.
New construction represents 43% of closings and 23% of available inventory. New builds continue to attract buyers with their 3-2-1 buy-downs to capture lower interest rates. With several builders offering locked-in rates at 4.99% or 5.99%, some buyers find the savings too hard to resist. Plus, it affords them more purchasing power and the ability to customize their home and design selections, which is especially desirable at a time where renovations costs are at an all-time high.
If you sell & buy at the same time, you don't have to worry as much about timing the market. If a sluggish market produces a lower offer on the home you're selling, then you can focus on acheiving a lower purchase price on your next home. Charleston real estate remains a sound investment. No one is predicting our population growth to slow down, and as long as people are moving here, our housing market is protected!
