I wanted to share some insights on the Charleston real estate market as of May 2024, given the substantial changes we’ve observed.
Over the past 13 years, Charleston has seen an average daily influx of 38 new residents, increasing to about 45 per day over the last three years. This steady population growth has significantly strained our housing market, exacerbated by the fact that home construction has not kept pace with demand.
Comparing this year to previous years, the market pace in 2024 has slowed relative to 2023, which itself marked a notable downturn from the peak years of 2020-2022. This deceleration is largely due to the prevailing high interest rates, currently around the mid-seven percent range. The Federal Reserve had initially projected three rate cuts by year-end, but recent economic developments—such as increases in unemployment and inflation—might delay these reductions.
Despite fewer transactions, home prices have continued to rise due to the low inventory, with an average increase of about 5% over the past year, and in some areas, as much as 10%. For homeowners considering selling, now represents an excellent opportunity to secure top dollar. For those thinking of moving to a higher-priced home, acting sooner rather than later is advisable, even with the current high interest rates.
Consider this scenario: if your home is currently valued at $500,000 and is expected to appreciate by 10% next year, it will be worth $550,000. However, a $700,000 home you might be eyeing will then cost $770,000. By waiting, the cost difference increases by $20,000. Although interest rates are high now, purchasing sooner allows you to potentially refinance at a lower rate in the future.
We also offer exclusive programs with initial rates around 4%, with options to refinance free of charge within the next three years, should rates decline. This could be a significant benefit if you’re planning to buy or refinance soon.
For any questions about these programs or if you’re interested in a home evaluation or receiving an instant cash offer, please click the links below.
Thank you for watching my video, and I look forward to assisting you with your real estate needs. Have a great day!
