Category Archives: Real Estate (Market info)

This Category features Charleston area market data and information

11/26/2024 · 7:20 pm

Mortgage Rates Forecast into 2025 – Will they Go Down?

Many experts expect rates to fall below 6% in 2025, but the forecast is far from guaranteed. In January 2023, some analysts thought that rates would be around 4.5% by the end of 2024, which is obviously not happening.

Fed Chair Jerome Powell says it best: “Forecasting’s are highly uncertain….Forecasting is very difficult.”

Rates will likely continue moderating in 2025 and 2026 but will stay relatively high as long as the economy keeps outpacing expectations, but over-all economists don’t anticipate a dip into the 3% or 4% range in the foreseeable future.

Here are the mortgage rate predictions as reported by US News:

• Fannie Mae: Rates Will Average 5.7% in 2025

The October Housing Forecast from Fannie Mae puts the average 30-year fixed rate at 6% by year-end, a decline from 6.5% in the third quarter. All told, the mortgage giant predicts mortgage rates will average 6.6% in 2024 and 5.7% in 2025.

• MBA: Rates Will Fall to 5.9% in 2025

The Mortgage Bankers Association predicts in its October Mortgage Finance Forecast that mortgage rates will fall from 6.5% in the third quarter of 2024 to 6.3% by the fourth quarter. The industry group expects rates will fall to 5.9% in the third quarter of 2025 and will continue declining to 5.9% in late 2025 and early 2026.

• NAHB: Rates Will Average 5.94% in 2025

The National Association of Home Builders expects the 30-year mortgage rate to average 5.94% in 2025, falling to 5.69% in 2026, according to its October Housing and Interest Rate Forecast. The trade group is forecasting that “sustained, sub-6% mortgage interest rates” will begin in the second quarter of 2025, something it previously forecasted to happen in the fourth quarter.

• Wells Fargo: Rates Will Average 5.86% in 2025

In its latest U.S. Economic Outlook, the Economics Group of Wells Fargo Bank puts the 30-year conventional mortgage rate at 6.3% in the fourth quarter of 2024 – a slight increase from when rates dipped in the third quarter. Wells Fargo economists predict that the average rate will dip below 6% in the second quarter of 2025, which is pushed further out from their previous forecast that expected sub-6% rates in the first quarter.

Gena Glaze

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11/26/2024 · 7:19 pm

North Charleston’s Cottages at Ingleside – Another Build for Rent Community in The Low Country

The Cottages at Ingleside in North Charleston, developed by Alabama-based Capstone Communities, is the newest build-for-rent neighborhood to join the Lowcountry lineup. 

As the build-to-rent model gains popularity, Capstone is actively looking for new development prospects in South Carolina beyond its North Charleston, Summerville and Myrtle Beach communities.

The model is especially enticing following the last few years as housing prices increased, mortgage rates remained high, and inventory has been low. 

In 2023, the Build to Rent (BTR) category grew to 75,000 units nationally — an 87 percent increase year over year and an all-time high. For-sale new builds declined 6.9 percent for the second year in a row nationally, according to national direct lender Arbor.

 “It’s a reaction to housing affordability at a more than decade low because of high mortgage interest rates,” said Robert Dietz, chief economist with the National Association of Home Builders.

A National Association of Realtors analysis noted that developers who specialize in other niches, such as family or senior housing, are also “dipping their toes into BTR to diversify their portfolios, since that segment represents a high-performance asset class offering faster lease-ups and lower turnover than apartments.”

Down the line, developers have several options, Dietz said. 

“There’s the one where the builder builds it and then sells it almost immediately to an investor,” he said. “There is a version where the builder holds it and operates it for a few years and sells it. … And then there’s ones where they claim to hold it forever, and it depends a lot on how it’s financed. I think we’ll have to wait and see in about three or four years.”

While there’s a nationwide debate over whether the build-to-rent trend is snatching up key properties that could have been available for buyers, Dietz countered that a home is a home. The model converts an owner into a renter, but still adds to the nation’s much-needed housing stock, Dietz noted. 

Gena Glaze

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11/26/2024 · 7:15 pm

New Amenities coming to Carnes Crossroads in Goose Creek soon – including a 11 acre farm!

Carnes Crossroads is a thoughtfully designed master planned community with a variety of home styles. The community features scenic parks, pools, playgrounds, lakes, and biking trails and a community dock.

New features on the horizon are a lake house, pickleball and tennis courts, and resort style pool with a water slide and the addition of an 11-acre farm that will be right in the middle of the neighborhood.

This new “Agrihood,” brings agriculture into the neighborhood, making the farm accessible to residents. The farm will have a staff that will grow all kinds of fruits and vegetables. Once a month, staff will have a farm share program providing each household a share of the harvest.

VIDEO LINK; https://carnescrossroads.com/agrihood/

Gena Glaze

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10/21/2024 · 3:25 am

Market Review – Charleston Area MLS- October Update 2024

NEW SALES – Pending (Ratified contracts) – New Written sales, a predictor of future closed sales, were down market wide -1% in September of ’24 versus September of ’23. However, last week 255 properties went under contract market wide, +3% from the same week last year. This is a strong and seasonally appropriate number.

CLOSED SALES – Year To date closed sales were at 13,390 at the end of September 2024. A very small difference from the 13,438 at the same time in 2023.

Third Quarter of 2024 closed sales were at 4,396, which is down 3 percent from 2023 (which had 4,510). As a reference, there were 5018 closed sales in 2022.

There were 1,254 closed sales in September 2024 which is down 11 percent from the 1,411 that we saw in September of 2023. Again, as a reference, there were 1,573 closed sales in September of 2022

SALES PRICE – The Median sale price closed out at $409,085 in September 2024. The Charleston market continues to stay in a tight band between $400k and $425k where it has been for most of the last 27+ months. The average sales price was $627,254 in September 2024.

AVERAGE SOLD PRICE PER SQFT

The median sales price has remained in a tight band but the average price per sqft remains near an all-time high, well above one year ago. Consumers are getting a smaller house for the money. Essentially, homes are continuing to appreciate despite a stable Median Sale Price.

INVENTORY – Approximately 2,000 new listings came online in September 2024, well ahead of last year’s number. Median Days on market was 26.

Inventory was at approximately 4,200 listings in September 2024. While this level of inventory is a significant increase, the gap between the number of listings available for sale and the number of listings needed to maintain a balanced market is still substantial. See chart below. We need approximately 2,100 additional listings market wide to achieve a balanced market (5 months of inventory)

The Charleston market has about ten weeks of inventory as a whole – this can vary by price range and specific location. The most active areas have inventory levels in the 6-10 week range.

NEW CONSTRUCTION – New construction represents 45% of all pending contracts in the MLS and new construction comprises about 36% of the closings.

If you have questions or would like more information, please don’t hesitate to contact me.

Gena Glaze

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10/21/2024 · 3:23 am

Goose Creek Growth and Development – SC Real Estate

College Park Rd – Berkeley Farms Rd – Goose Creek City Council voted to annex 11 parcels of land totaling 36.25 acres on College Park Road and Berkeley Farms Road. The development plan will include single-family detached dwelling units as well as some multi-family units with 5 acres designated for open space with connected trails and walking paths.

Windsor Mill Road and Goose Greek Boulevard (Hwy 52) – Developers plan to transform this vacant corner into a mixed-use development. SoLiv at Goose Creek plans to encompass 30 acres, with the land assembled from multiple parties organized by a local developer. The preliminary plans consist of 42,000 square feet of commercial and retail space, with 130 active adult residential units and 300 multifamily units.

Gena Glaze

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10/21/2024 · 3:20 am

One Man’s Land is A Battleground For A Looming Mega Housing Development in Berkeley County SC

A Berkeley County property owner can peek through a stand of trees across the road and see part of Cane Bay Plantation.  The other side of his land overlooks 1,700 acres of undeveloped land where Seattle-based Weyerhaeuser, the nation’s largest timber tract owner, wants to build another large-scale residential project.

Mr. Burbage Smoak’s property along the heavily traveled, two-lane Black Tom Road stands in the way of any plans Weyerhaeuser might have and Berkeley County Council appears determined to keep it that way.

Smoak’s vacant property includes 421 acres southwest of Moncks Corner, most of it is wetlands. However, He wants to build a strip of commercial buildings on 80 acres that front Black Tom Road — maybe some medical offices or retail space, something that will “support the residents of that area,” according to Kevin Berry, president of Earthsource Engineering, who is representing the landowner.

“We’re not just trying to put more residential rooftops in the area,” he said, adding he’s keenly aware of county council’s desire to slow residential growth so new roads and other critical infrastructure can catch up.

“The public sentiment, and they’ve articulated it well, is there’s frustration when development comes before infrastructure,” said county supervisor Johnny Cribb.

Read More at Post and Courier

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10/21/2024 · 3:12 am

SC Growth Shows No Sign of a Slow Down.

South Carolina is among a handful of Sunbelt states where growth is pulling away from the rest of the country, and one of the region’s top economists says there doesn’t seem to be anything on the horizon to stem the acceleration.

“I don’t see anything in the data that makes me think that growth in the Carolinas, in particular, is going to slow down,” Laura Ullrich, a Charlotte-based economist with the Federal Reserve Bank of Richmond, said during the S.C. International Trade Conference on the Isle of Palms.

The lures that have drawn newcomers from other states — jobs, weather and relatively lower costs — aren’t going to change, Ullrich said. Already, South Carolina ranks as the nation’s fastest-growing state percentagewise, with 1.7 percent growth in 2023, according to census data. That’s nearly 91,000 more people than the previous year, with roughly 19,000 of them moving to the three-county Charleston region.

“And, quite frankly, we still have several mid-sized metros that have a lot of growing to do,” Ullrich said

“If you live in Charleston, things seem super expensive here,” she said. “But it’s a lot cheaper than a house in Fairfax County, Virginia, and a heck of a lot cheaper than San Diego. So, if you look at the areas where that migration is coming from, they are very expensive. Yes, it’s expensive to buy a house in Mount Pleasant. But if you move from San Diego, you might buy a house in Mount Pleasant and another on Lake Murray.”

At the same time, wages are often much lower in South Carolina, and that can amplify the housing crisis regardless of cost comparisons.

“Everybody is worried about housing,” Ullrich said. “The only ways to fix it are, basically, subsidies and density. And people don’t want to talk about density. It’s really hard because everyone wants affordable housing but when density is going up down the road, people complain to their city, and they don’t do it.”

There are a few intangible variables that could crimp growth, such as rising geopolitical tensions or a surprise event that no one can forecast. But Ullrich said the biggest question is how quickly the Fed will lower interest rates going forward.

“Is it going to be an elevator or slow stair steps?” she said.

The answer could go a long way in determining how the housing crisis — both affordability and availability — shakes out in the Charleston region and throughout the Sunbelt.

Read more at Post and Courier

Gena Glaze

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09/22/2024 · 8:24 pm

Market Review – Charleston Area MLS- August Stats 2024

NEW SALES – Pending (Ratified contracts) Down -6% in August of ’24 versus August of ’23. See Chart below – The orange line represents ratified contracts by week last year…the green line is this year…and the blue line is the 15 year average for each week. Follow the green line below.

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*written sales (ratified contracts) reflect buyer sentiment and predict the number of closed sales in a month or two as ratified contracts typically close within 4-8 weeks.

CLOSED SALES 149I homes closed in August 2024 down -7.9% from August of 2023

MEDIAN SALES PRICE The Median sale price in the Charleston market $422,670, up 5.67% from August 2023 and has continued to stay in a tight band between $400k and $425k for most of the last 26+ months.

The Average sales price was $617,873, up 11.54% from August of 2024

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AVERAGE SOLD PRICE PER SQFT  While the median sales price is remaining in a tight band, The Average Sold Dollar per sqft remains near an all-time high, at about $291 / SQFT. This means that homes are continuing to appreciate despite a stable median Sale Price

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SEASONAL STATS The seasonal surge in median price that is typically experienced in the spring/summer market trended about 6% above last year’s seasonal surge, suggesting that the current pricing in our market has a solid base and given low inventory levels relative to sales, could mean that additional price gains lie ahead.

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*Please note that all real estate is local; some local submarkets where there is a lot of new construction in close proximity and similarly priced are seeing prices advance more slowly.

INVENTORY Active Inventory was at approximately 4,000 listings in August, which is a significant increase over the 1,035 listing “floor” that we set in February of 2022. However, we need approximately 3,500 additional listings, market wide, to achieve a balanced market (5 months of inventory). The gap between the number of listings available for sale and the number of listings needed to maintain a balanced market is still substantial. see chart below

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Approximately 1,928 new listings came online in August, well ahead of last year’s numbers, which should help drive sales later this year.

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The Charleston market has about ten weeks of inventory as a whole, still leaning toward a seller’s market (this varies by price range and specific location). The most active areas have inventory levels are in the 4-6 week range.

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NEW CONSTRUCTION New construction represents 45% of all pending contracts in the MLS and comprises about 36% of the closings

FORECLOSURES AND SHORT SALES Foreclosures and Short Sale combined are at 0.9% of all available listings. This is down from 1.8% of all available listings on 1/1/2020. This are very few “newly distressed” properties in the pipeline.

Record home equity is driving the historically low delinquency rate along with high levels of employment. Homeowners do not want to lose their equity.

MILLION DOLLAR PLUS MARKET We are at roughly double the monthly pre-pandemic sales levels of $1MM+ properties. This market segment remains robust.

If you would like more market information or have a real estate need, don’t hesitate to contact me!

Gena Glaze



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08/16/2024 · 8:38 am

JULY 2024 Market Review – Charleston Area Real Estate

The Real estate market is still active and the median sales price continues to remain steady – It has been roughly between 400k and 425K for over 24 months. Inventory is still below what is needed for a balanced market, but new listings are rising. Below are July 2024 calculations.

PRICE: The median sales price was $425,473, up about 5% from July 2023. The average sales price was $658,344. The median price per sqft was $228 and the average was $300 / sqft

NEW SALES: Pending sales for July were at 2,139 up 15.3 from July 2023

SUPPLY: There were 2139 New Listings in July 2024 – up 15.6%. The median days on market was 20, with approximately 2.9 months of inventory. Still under the 5 months of inventory recommended for a balanced market.

CLOSED SALES: 382 properties closed in July 2024 which is up 10 percent from July of 2023.

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08/11/2024 · 5:42 pm

Where High-Earning Households Are Moving – 2024 Study – SC #4

 SmartAsset examined the latest IRS data to find where households earning $200,000 annually or more are moving.

North Carolina and South Carolina ranked third and fourth for most high-earning households moving in, with a net gain of 5,792 and 5,270 households, respectively. The average household income of high-earning households moving in is $456,000 for North Carolina and $501,000 for South Carolina. 

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