Charleston Home Sales Experience Dramatic 10.9 Percent Decline in September

Charleston’s Home Sales See a Significant Drop

In Charleston, a vibrant city known for its historic charm and warm Southern hospitality, there’s been a noticeable shift in the real estate market. If you’re keeping an eye on local happenings, you’ll want to tune into this development: home sales in the Charleston area fell by 10.9 percent in September 2024. This decline is more than twice the national average of 4.2 percent for the same period, which is certainly a notable change for a market that usually thrives.

A Deeper Look at the Numbers

According to the latest data from the S.C. Realtors Association, the Charleston market recorded 1,381 home closings last month. Year-to-date sales remain relatively stable at 13,114, showing a slight dip year-over-year. Interestingly, even the median sales price has seen a slight decrease of 1.2 percent, settling at $410,000. It’s a mixed bag of indicators, leaving many community members puzzled.

Experts Weigh In

Real estate professionals in the area are taking this dip in stride. For instance, Robin Pye, broker-in-charge of Carolina One Real Estate’s Summerville Main Street office, called this decline a “blip.” She noted that fluctuations are common, particularly in September, when the market often feels the impact of slower summer months. “If we saw a decrease for the next three or four months, then it would become a trend,” Pye emphasized, adding that pending sales from late August have bounced back up by 15 percent.

Pye suggests that many buyers are currently waiting to see if borrowing costs will lessen further, reflecting a broader national trend where people are cautious ahead of the 2024 presidential election. With such significant political changes on the horizon, it’s understandable why buyers are holding onto their wallets.

The Role of Interest Rates

The ongoing uncertainty surrounding interest rates is adding to the mix. A mere 1 percent increase can translate into an additional $200 on monthly mortgage payments—a hefty sum for most families. Despite a recent half-point rate cut by the Federal Reserve in September, rates haven’t dropped to levels buyers were hoping for. Currently, the 30-year fixed-rate mortgage sits at 6.32 percent, which, while lower than last year, is still far from the historical lows that many buyers enjoyed just two years prior.

As Pye pointed out, many homeowners who locked in low rates during 2020 and 2021 are now reluctant to sell, which complicates the inventory issue even further. The Charleston area still sees a low inventory—2.9 months’ supply—when a balanced market would ideally have about five months’ worth.

What’s Ahead?

As we move forward into the fall months, the outlook remains cautiously optimistic. Pye mentions that the amount of new listings has increased by 12.9 percent, signifying more options for eager buyers. However, with an increasing number of days on market—up 38.8 percent to 43 days—it’s clear the market is experiencing some shifts.

Amid this climate, Pye offers some wise advice, referring to the “five Ds” in real estate: diapers, divorce, diplomas, diamonds, and death. “These life events will continue to happen regardless of election outcomes or interest rates,” she concluded, hinting that the local market will still see activity driven by personal circumstances.

Home Sales Around the Region

To wrap up, let’s take a quick look at the median sale prices in various Charleston neighborhoods for September:

• Kiawah Island: $3,995,000 (+60.1%)
• Sullivan’s Island: $3,043,000 (-48.7%)
• Downtown Charleston: $2,060,000 (+50.3%)
• Daniel Island: $1,865,000 (+9.7%)
• Isle of Palms: $1,785,000 (-27.8%)
• James Island: $760,000 (+20.6%)
• West Ashley: $521,000 (+0.7%)
• Summerville: $382,645 (-2.1%)

As we see how these trends unfold, it’s clear that the Charleston real estate market is adjusting, but still retains a unique character, influenced by local nuances and broader economic conditions.