–Drew Grossklaus, Sales Director/BIC East Cooper
The third quarter of 2022 came with a dramatic shift in the Charleston real estate market. The signs of a slowdown were apparent, but it was a swift change. The hot topic has been rapidly rising inflation rates. Inflation, while not directly tied to mortgage rates, has had the indirect effect of more than doubling the rate from a year ago. The culmination of the economy has also led to the stock market to drop nearly 33% so far in 2022. All these occurrences have drastically cooled down the red-hot real estate market.
Charleston has seen the effects of the slowdown in nearly all aspects of real estate. In looking at the statistics of single-family home sales in the $750,000 price point, the following slow down trends can be found. In the third quarter, the days on market have risen from 14 to 24 days which is an 85% increase since the low of 2022. The months’ supply has risen 123%, from 1.3 to 2.8. The number of closed sales has dropped about 31%, from a high in April of 296 to 203 in September. Given the record low number of listings in 2021 and the beginning of 2022, we have also seen some positive trends come from the slow down. The number of homes for sale is up 120%, with the low for the year in February of 292 and September having 644. The number of new listings is also up nearly 30% from the low month of January.
The trends are clear that the market dramatically shifted and quickly. In looking at historical statistics, it helps to keep the market shift in perspective when comparing it to the time before the dramatic events of 2020 through the beginning of 2022. The days on market, as noted, are up nearly 85% to around 24 days. However, in 2019 the average days on market for the year were around 90, or 73% less. The months’ supply of homes currently around 2.8, was about 10 for the year in 2019, again about 72% less. The average number of homes for sale in 2019 was 1,100, versus the current 644, or 41% less. The average number of closed listings was 120, versus 203 in September, a nearly 70% increase.
Comparing the current market to 2019 shows that giving some perspective to the slowdown shows another story. Charleston real estate inventory remains low but there is still incredible demand to live in one of the most amazing cities in America. While I do think the trends we have seen in the third quarter will continue into the fourth quarter, we are still ahead of what we were seeing in 2019 before the world had a global shift.
William Means Real Estate is always here to assist you in understanding Charleston real estate in the evolving market. If you have questions about buying or selling in Charleston, we are here to help you see the different perspectives.