April 2022 Market Update
Everywhere you go it seems someone is talking about real estate, whether it’s increasing prices, the feeding frenzy at new listings or the crazy number of offers sellers are getting.
Yes, demand remains sky high, and it’s still a frantic market of multiple offers, but sales activity is settling down. Two weeks ago our market only saw 10% more pending contracts than a typical spring week. That means we had 34 more buyer contracts than normal.
There’s a misconception that there is no inventory - FALSE! New listing levels are actually higher than last year's "new normal." Local listing activity is robust but is selling so quickly that the standing inventory levels are staying low. That static inventory consists of listings that started out priced too high and didn't correct quickly enough. In this market, a listing that has been on the market for more than 7 days is considered stale, leaving buyers asking what's wrong with it.
In addition to inventory increasing, so are prices! The median sale price in our market this March was $385,000, up 15% over last March and the average sales price is up 33% in Charleston County. Both average and median prices are up 22% from last year in West Ashley and Mount Pleasant, with Johns Island's median price up a whopping 39% from 2021! And as much as we hear complaints about how expensive housing here is, our median is still less than the $405,000 national median price.
Yes interest rates are also rising but we have not yet seen this slow down buyer demand. While it may affect their purchasing power, buyers are still buying! Last month our list-to-sales price ratio officially went over 100%, and is 101%+ for condos and townhomes. Neither prices nor rates are scaring off buyers. One trend making a comeback... drumroll please... the adjustable rate mortgage! ARMs are back in play and a great short-term solution for buyers who haven't found that forever home. ARMs come with lower interest rates up front, so it may be an attractive solution if you're only going to be in your home for 3-5 years. Just be sure to know what the maximum rate can be, as it's impossible to predict future economic conditions.
Also notable is the demand for luxury properties which continues to increase. The $1MM+ market took off starting around July 2020 and continues to outpace pre-pandemic levels by almost 2 to 1. Transplants are still coming here in droves for the quality of life and affordability. Our average sales price and property taxes seem cheap next to big markets in New York, Connecticut, California. We remain a desirable option for the once city dwellers who now desire a coastal home rich in history. Prices will continue to appreciate in Charleston. Rest assured, you haven't missed the market - it's not going anywhere!
Noteworthy Numbers:
A 3 bedroom home in Summerville recently received 64 offers in only 3 days.
A 5 bedroom home in Park West recently sold for $126k over list price.
A $200k brick ranch in West Ashley went for $55k over asking, that's 27.5% over list price.
A renovated ranch on James Island sold for 21.5% over asking - $137k above the $635,000 asking price
A Summerville home listed for $245,900 sold for $358,050 - 45% over asking.
In March, only 22% of sales on James Island went for less than full price. In Summerville it was 10%, and 11% for Mount Pleasant.
