2024 Year in Review!

Charleston Real Estate Market 2024 Year-End Update: Stats, Insights, and a Dash of Humor

As we bid farewell to 2024, it’s time to reflect on the Charleston real estate market—a year that proved as unpredictable as a Lowcountry thunderstorm. From fluctuating interest rates to rising inventory levels, the market has seen its fair share of changes. Let’s get into the stats, add some perspective, and take a peek into what 2025 might hold.

The Highlights:

1. Average Sales Price: The average sales price rose 10.4% over the year, defying gravity despite rising inventory and fluctuating interest rates. Buyers are still willing to invest in Charleston’s charm, even if they’re paying more for the privilege. To put it lightly, Charleston’s allure remains recession-proof (or at least, interest-rate-proof).
2. Negotiation Trends: The average percentage of list price realized dropped slightly by 0.5%, now sitting at 96.5%. Translation: Sellers are negotiating about 3.5% off their asking price. Before you start haggling for beachfront property, remember this stat reflects negotiations from the final list price—not the original, where homes may have dropped percentages to get into the range a buyer would engage with a contract.
3. Days on Market (DOM): The average DOM rose 14.3% to 40 days. While this might seem lengthy compared to the red-hot pandemic years, it’s still below the pre-pandemic norm of 50+ days. So no, the market isn’t collapsing; it’s just catching its breath.
4. Months of Supply: Inventory rose by 40% to 2.8 months of supply. Compared to pre-pandemic levels of 4/5 months, this uptick signals a return to balance rather than a cause for alarm. Think of it as the market’s New Year’s resolution to get back to normal, though not sure what the new normal is yet.
5. Listings & Contracts:
• Listings: Up 10.6%, a welcome relief for buyers who’ve been circling the same handful of properties like seagulls over a shrimp boat.
• Contracts Written: Up a modest 2.5%, showing that while buyers are active, not every listing is flying off the shelves.
6. Closed Sales: Closed sales edged up by 1.1%, reflecting some fallout in contracts due to factors like due diligence periods, rising insurance premiums, and interest rate volatility.

Insights:

• Rising Inventory: While some areas are still struggling to meet buyer demand, others are feeling the pinch of increased inventory. Sellers in these areas may need to adjust their expectations (and prices) to align with the new normal.
• Interest Rates: Let’s talk about the elephant in the room. Interest rates remain well above the ultra-low levels of the 2010s, making affordability a challenge for many buyers. However, Charleston’s lifestyle and economic opportunities continue to attract relocators, keeping demand steady.
• Market Resilience: Despite the challenges, Charleston’s real estate market remains remarkably resilient. Rising prices and increased inventory suggest a market that’s stabilizing rather than slumping.

What’s Ahead for 2025?

Looking into 2025, here are a few predictions:

1. Balanced Market: Inventory levels are likely to continue their gradual climb, inching closer to the 4-month mark. This shift could lead to a more balanced market where buyers and sellers have equal negotiating power.
2. Interest Rates: Expect continued fluctuation. Buyers should prepare for rates to hover around current levels, but any stabilization or reduction could reignite demand.
3. Price Growth: While prices may not rise at the breakneck pace of 2024, Charleston’s desirability suggests steady, sustainable growth.
4. Challenges Ahead: Rising insurance premiums, stricter guidelines and other costs could remain a stumbling block for some buyers. Educating clients on these hurdles will be key for agents in 2025.

Wrapping It Up:

If 2024 taught us anything, it’s that Charleston real estate is as dynamic as ever. Whether you’re buying, selling, or just keeping an eye on the market, understanding these trends can help you make informed decisions—and maybe even squeeze in a little humor along the way. Here’s to a prosperous and predictable (fingers crossed) 2025!

Let me know your thoughts and questions. What’s your take on the Charleston market’s trajectory? Let’s discuss!