2014: A Banner Year for Charleston-Area Residential Real Estate
Economic stability and consumer confidence at the root of rising prices and sales volume
CHARLESTON, SC—(January 14, 2015) According to data released today by the Charleston Trident Association of Realtors® (CTAR), the Charleston area residential real estate market saw another year of healthy, sustainable growth in 2014. Despite an inventory of available homes 12% lower than it was a year ago, buyers still found what they were looking for, as sales volume increased 9% from 2013 and median price saw sustainable growth again in 2014, increasing by 5%.
14,253 homes sold in 2014 in the Charleston metro area, with Kiawah/Seabrook, Wando, parts of the North area and James Island leading the most active subsections of the Lowcountry. Median price for the MSA was $215,000 at the end of the year—significant growth from the low of $181,275 in 2011. The areas with the most median price growth were the entire downtown Charleston peninsula and Folly Beach. In December alone, 1,270 homes sold at a median price of $202,870.
“2014 was another great year for Charleston real estate” said 2015 CTAR President, Matt DeAntonio. “In 2015, we expect to see sales volume and prices continue to grow, but at a tempered pace. We will be watching the Fed to see what they do with rates—we do expect to see them increase slightly—and we will continue working to ensure that the Charleston region maintains its business-friendly climate and that we’re growing in smart, sustainable ways. Those are two keys to the long-term sustainability of this real estate market” said DeAntonio.
The type of properties that are selling has shifted significantly over the last few years. Sales of single-family homes increased nearly 17% this year, while condo and townhouse sales remained relatively constant. Distressed sales have declined by half since 2012, making up just 12.5% of the market in 2014.
Inventory remained in the 6,000 range during 2014, settling at 5,425 at the close of the year. This figure represents about 12% fewer homes for sale than there were in 2013, but as seller confidence continues to build on the heels of another positive year, expect to see inventory increase throughout 2015. Johns Island had the largest increase in inventory, while the Upper Charleston Peninsula, Folly Beach and Sullivan’s Island had the lowest inventory growth, year-over-year.
At the Association’s annual market update event this morning, which was attended by more than 400 from the local real estate and business communities, expert economists Stephen Slifer and Dr. Joey Von Nessen lauded the activity in the local market, the Charleston economy in general in 2014 and told attendees to expect more positive growth in 2015. “If you liked 2014, you’re really going to like 2015” said Dr. Von Nessen. He pointed to several economic indicators that should help support continued growth in the Charleston and statewide real estate markets—consumer confidence, low unemployment, job growth, declining oil and gas prices and the upward movement of unit sales and prices in our real estate market. For more about the update and to view speaker presentations, visit CharlestonRealtors.com/RMU.
Real Estate Matters in Charleston SC - Gena Glaze 