2017 CTAR Residential Market Update
The news at this year’s CTAR Residential Market Update was exciting for the real estate industry in Charleston! We wanted to share it with our followers because it will affect your real estate plans for the next 5 years.
Charleston's real estate market this spring of 2017 is the best market we have seen in the history of Charleston. Prices this Spring are higher than they have ever been. Inventory is low, and interest rates are still relatively low.
And here's the best part... Charleston's booming economy will continue to grow for at least the next 4 to 5 years. We are headed for great economic times in Charleston.
Why Buy a New Home Now?
- Interest rates will rise. They have already risen from 3.5% to 4.25% and they are headed for 4.6% by the end of 2017. They will also rise to 5.1% by 2018. This additional rise in interest rates will make your monthly mortgage payments 10% more expensive
- Prices will rise. Charleston prices rose by 4.6% in 2016 and will rise by another 3.5% in 2017. This will make homes more expensive if you choose to wait to buy
Why Sell Your Home Now?
- Yes, prices are going up by 3.5% this year, but inflation is expected to be 2.7% this year. That means you are only making 1% additional equity adjusted for inflation by waiting to sell your home another year.
- If you are ready to sell your home and make a move, inventory levels are low, prices are higher than they have ever been, and homes are selling quickly. It's a great time in history to be a home seller.
Here are some additional notes about the Charleston Economy:
- Consumer confidence is highest it has been in 13 years
- The rise in interest rates will not affect home sales because wages are rising faster than rates.
- Housing demand will continue to exceed supply for 2017 and 2018, meaning inventory will stay low and houses will sell quickly
- Charleston's job market is at full employment
- Rent prices will rise 3.5% in 2017
- The very earliest we could see an economic recession is 2020, and this marks the longest economic expansion in the history of the US at 11 years of expansion
- Charleston will see 8% increase in the number of homes sold in 2017
- Charleston's real estate price growth is slowing
In summary, it doesn't get any better than this. This is the best economy in the history of Charleston for real estate and it will continue to be for at least the next 4 or 5 years.
Let us know if you would like to discuss buying or selling a home this spring.