We are more than half way through the 2022 year and although it is still a sellers' market in Charleston, we have moved more to a balanced market as we saw an increase in inventory and costs of home buying. There has been a drastic turning point in the market, buyers have some options now and are being more cautious with their buying decisions - data and comps are now being used to support purchase prices and the frantic buying has stalled. Believe it or not, we are asking for home inspections, appraisals and negotiating again.
After five months of gradually increasing inventory, we saw a drop in new Listings coming on the market in July, Daniel Island has been holding steady with around 35 new listings a month. By no means have we normalized the inventory yet - New listings were down 49% compared to last July on Daniel Island and 16% for the entire MLS. And despite some "normalizing from the record-setting 2021 sales and waking up to multiple price reductions on the MLS, prices are still higher than last year.
National real estate news does not always correlate to what we see locally, we are still seeing strong demand for homes despite some challenges on where the prices should be.
The U.S. housing market has continued to cool, as rising mortgage rates and record high
sales prices have stifled affordability, weakening demand and pricing out a multitude of buyers. Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80% more expensive now than they were just three summers ago, according to the National Association of REALTORS® (NAR).
As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.
Here are some details about how the month end looked:
Average Sales Price
Entire MLS $556,330 | +15.7% 77 - Daniel Island $2,121,964 | +54.9% 42 - Mt Pleasant S of IOP Connector $1,019,236 | +40.6% 51 - Peninsula Charleston Inside of Crosstown $1,500,423 | +27.3%
Average Price Per Square Foot
Entire MLS $267 | +16.1% 77 - Daniel Island $522 | +21.4% 42 - Mt Pleasant S of IOP Connector $451 | +36.3% 51 - Peninsula Charleston Inside of Crosstown $710 | +27.0%
Dollar Volume Sold
Entire MLS $940,754,012 | -8.4% 77 - Daniel Island $29,707,500 | -55.7% 42 - Mt Pleasant S of IOP Connector $94,788,984 | +14.7% 51 - Peninsula Charleston Inside of Crosstown $58,516,500 | -15.9%
Closed Sales
Entire MLS 1,692 | -20.8% 77 - Daniel Island 14 | -71.4% 42 - Mt Pleasant S of IOP Connector 93 | -18.4% 51 - Peninsula Charleston Inside of Crosstown 39 | -33.9%
If you are thinking of buying or selling, it is a great time for both! Call me to discuss!