July 15, 2020
Here in the Charleston Mid-Year Market Report, Charleston Real Estate Sales continue to be strong. Typically, every spring and summer is a time when we expect sales to be at their highest. However, in light of all of the distractions in the world, the fact that Charleston Real Estate Sales are setting records just about every week, is nothing short of amazing to me!
Having a front row seat to the bursting of the housing bubble back in 2005-2009, I for one, did not expect sales to be at this pace. After the crash of the housing bubble, real estate sales virtually stopped for a few months. Then gradually began to come back but in a much different fashion. Now, during the current pandemic things are very different here in Charleston!
Fortunately…having realized a long time ago that “flexibility is one’s greatest asset” in real estate, I’ve learned, “don’t question, adapt”! So now we are looking back at a couple of months worth of market data wondering, “where do we go next”! So let’s take a look at the Charleston Mid-Year Market Report for July 2020.
Hindsight Is 2020
Frankly, I have to admit, I’m baffled by this extreme activity and just simply rolling with it! Funny how the experts always come out and sound so smart when they tell you about what’s happened. And, have you ever wondered why so few make predictions, and even fewer will remind you when they were wrong!
Today’s New Challenges
For the Byrd Property Group we’ve simply been working hard everyday, selling our listings and helping our buyer clients find great homes. But, along the way, it hasn’t been without some new challenges.
- Lending rules for self employee people have gotten tougher and more stringent.
- Fewer listings have come on the market and buyers have fewer choices.
- In some situations buyers have to compete for homes in multiple offer situations.
- On the bright side! Interest Rates are at or near all time lows.
- Banks have actually been tightening lending restrictions instead of loosening them.
- Banks are in a much better shape than as they were before the housing crisis.
The good news in all of this is that the market didn’t just stop and fall off the cliff like it did after the housing collapse. And, I can honestly tell you I was prepared for the worst when Covid-19 first came on the scene. With that in mind, realistically we have to understand that we are a long way from out of the woods! So depending on all of the volatile elements effecting our planet right now, just know that anything can happen from here!
Charleston Mid-Year Market Report – The Numbers
So to begin with, June 2020 sales just eclipsed June 2017 sales by 11 sales. Not a large beat, but a beat none the less. Previously June 2017 were the best June sales numbers on record. Here is a chart showing the number of sales each year for ten years.
Charleston Mid-Year Market Report – Home Buying On A Tear!
Buying activity in the Charleston area has been impressive! Before May 2020, the highest weekly number of sales was 458 in 2018. And in the previous 3-4 years, 400 to 425 sales per week being relatively normal. So, what’s really impressive is that we have exceeded the old high of 458 sales in 2018 in each of the last 10 weeks. Additionally, we’ve surpassed 500 sales per week in the last 5 out of 6 weeks. In the last week of June we had 539 homes go under contract!
Unique to The Pandemic
Being a sign of the times in the Charleston Metro Area, many homes are going under contract site unseen. And due to the low inventory of homes on the market, some home sellers are experiencing multiple offers on their homes.
Foreclosures
As of this writing foreclosures and short sale have surprisingly been also non-existent. As we move forward this may not continue to be the case but we intend to keep and eye on this important market factor.
Low Inventory
In the Charleston Metro MLS since 2015, the inventory of homes on the market has ranged from around 5,500 to 7,000 homes on the market. However, late in 2019, our homes for sale inventory dropped below 5,500 homes on the market. Now our inventory numbers are getting closer to 4,000. Due to the recent local anti-growth policies of some of our local municipalities, the development and construction of new communities and new home construction is not keeping up with the current demand. So if you ever had any inclination of putting your home on the market, now would be the time! Less competition and shorter market times!
The Luxury Market on Fire!
Yes, that’s right! The Luxury Market in Charleston has been on fire in recent weeks. In the Tri-County area each week we normally have about 12 to 15 sales of homes priced at over a million dollars. Over the past 6 weeks we have had 207 homes go under contract that were priced over 1 Million Dollars! That’s almost 35 sales per week! Many people are speculating that these buyers are coming from the Covid-19 hot spots, as more people leave the densely populated cities in the north. All speculation however, as of yet there is no concrete evidence that confirms this.
Surprisingly, what I’ve discovered is that in May of 2019 the Charleston Real Estate Market had approximately 855 homes on the market at over 1 million dollars. And now, that inventory has shrunk to 623 homes on the market!
And what’s even more compelling is that the Months Supply of Homes number for Luxury Homes In Charleston over 1 million dollars has come down to an 8.5 months supply on inventory! That’s the lowest it’s been in 15 years! So if there was ever a time to sell a Luxury Home in Charleston…the time is now! Less competition and shorter market times!
Charleston Mid-Year Market Report – Summary
These are simply unprecedented times. With so much volatility in the world and influences outside of real estate, the only advice I have is to pay attention! Having lived and worked through several different real estate market cycles and events from Desert Storm, 9-11-2001, the Housing Bubble and now the Covid-19 Pandemic we survived and thrived! And we came out on the other side much stronger and wiser. This time will be no different.
So keep your head on a swivel, your mind sharpe, stay safe and smart during these crazy times! And as always, if you or anyone you know needs expert real estate advice or assistance, please do not hesitate to call us! We are here for all our friends, relatives, present clients and new clients. Byrd Property Group
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The Author…
Bill Byrd is a Husband, Father, Realtor, Educator, Musician and Athlete. A licensed Realtor since 1986 who loves helping his clients grow their personal wealth through real estate! Having helped hundred’s of families and individuals during his career you can feel comfortable that Bill’s and his Team’s experience and expertise are unparalleled in our market. Plus, Bill’s a great guy and one heck of a guitar player! More About Bill
