I recently sat down for a Facebook Live interview about the current state and future of the Charleston market. Here’s what you need to know.
Today I’ll be answering a few key questions about the Charleston market’s progression this year, as well as providing my predictions about what we can expect to see moving forward into next year.
Are we entering a buyer’s market?
All the leading indicators are saying that, yes, we are starting to shift from what has been a very long and strong seller’s market to a buyer’s market.
What conditions are leading us to this buyer’s market?
In June, 14% of all listings saw a price cut, a figure that is up 33% over last year. Another of our sources show that housing demand fell by 10%, the largest decline we’ve seen in two years.
What does this mean for sellers?
If you’re a seller and prices are still high, I would highly recommend acting quickly. In fact, my wife and I just put our house on the market this month because of this data. It’s a great time to list your home on the market if you want to get the most money possible.
What does this mean for buyers?
For buyers, this is all very good news. It’s been a tough market for buyers to find a home; many have been battling multiple offers for the last few years. Now we’re starting to see more options to choose from. Houses are also spending more time on the market, which is causing sellers to reduce their prices, which, in turn, makes them more affordable to buyers. However, buyers do need to watch out for rising interest rates.
What does this mean for home builders?
Home builder confidence is the lowest it’s been in over a year. This means that builders are slowing down their production out of fear that they might not be able to sell the inventory they would otherwise be generating.
With all of this in mind, what are your market predictions for the end of this year and moving into 2019?
Through the end of this year, we’ll likely see more of the same that we’ve been seeing. Inventory will creep up, but prices will probably plateau moving into 2019. Of course, Charleston is such a strong and positive market, and I haven’t noticed a decline in prices, even though inventory has been climbing a little bit.
There will be two factors that might give sellers some trouble in the market: rising interest rates and rising prices. Prices have risen so much in Charleston already that buyers are finding it tough to locate affordable houses, limiting the pool of buyers that sellers could hope to attract. In terms of growth, the 2019 market will probably remain pretty flat.
If you are looking to buy or sell a home, get on the market before things start to change even more. Feel free to reach out to us by phone or email, and we can discuss what the best options are for your situation.
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