Charleston Real Estate Market Update: April 2024
A NOTE FROM SMITH SPENCER:
We did not want to make this month’s topic about interest rates. Again. Again, again. That horse is not only dead, it looks like it’s been paid a visit by the Sopranos. But, interest rates do seem to be the topic du jour. Every single jour this year… and last. And there isn’t anything a single one of us can do about them. So in the spirit of accepting the things we cannot change, let’s talk about the art of betting instead.
While there’s no guaranteed formula for success, betting is more or less about understanding the numbers, managing risk, and employing strategic thinking. But it’s also about emotional control, adaptability, patience, and yes – sometimes a little bit of luck. In the last several years we watched as many potential buyers stood on the sidelines convinced that housing prices would go down while others paid to play and gained equity that truly changed the direction of their lives. Many of those early risk-takers were able to leverage equity from a sale and pay cash for the next one – 32% of homes sales this January were cash. Almost one out of every three!!
In Charleston, we’ve seen the median sales price increase by 50% since 2019. We are still hearing from buyers that say they are waiting until prices go down, but our message to buyers hasn’t changed: prices are rising (Q1 2024 is up 5% over Q1 2023) and the difference in a 6.875% rate and a 7.25% rate on a $500k loan is about $125 a month on a mortgage payment. It’s not worth it to wait!
Knowledge is power when it comes to betting or making any decision. Don’t fall for every headline you read. What’s happening in the rectangle states isn’t necessarily what’s happening in the Lowcountry. Charleston is a city like no other and therefore its real estate market is like no other. While there may be fewer quick-flip opportunities for investors, it’s a wonderful place to hang your hat, and our cup runneth over with demand.
We are all soldiers of some kind. We see ourselves as soldiers for our clients but we are also soldiers for Charleston. We love this city. We love its natural beauty and its manmade beauty. We love its people and its places. We love what it is and what it’s not. We love its history, its present, and we already love its future. We will always bet on Charleston.
Cheers,
Erin + Stacy
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* data from Chas MLS