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.
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.
Nexton, recently announced the addition of Stanley Martin Homes, to the community’s builder program. With plans to develop a collection of townhomes and condos, this project is one of several Stanley Martin developments launching in the Charleston area.
Nexton ranks among the best-selling communities in the nation and boasts a variety of neighborhoods that feature local and national builders and include a diverse array of homes.
Nexton has established itself as a live-work-play destination that features dining, shopping, services and hospitality. Nexton has delivered over 500,000 square feet of office space and offers conveniences such as sought-after schools, grocery stores, modern infrastructure, 20 miles of trails and 2,000 acres of green space.
A Charleston real estate firm has big plans for an aging shopping center on Ashley Phosphate Road, transforming it into a future destination for family entertainment, shopping and dining. Woodlock Capital is thinking along the lines of Mount Pleasant Towne Centre — if all goes according to plans.
To move the vision forward, the firm has purchased Festival Centre in North Charleston for $21.75 million — its largest acquisition to date. The anchor tenant, an entertainment venue, is already locked in to bring the concept to life.
The high-profile 325,347-square-foot retail property is at 5101 Ashley Phosphate Road in Dorchester County. Plans include mini golf, go-karts, arcade games as well as additional restaurants, coffee shops, apparel stores and pickleball venues that will further drive traffic.
According to a new Zillow Home Loans analysis, a monthly mortgage payment is actually less expensive than rent in 22 of the 50 largest U.S. metros. Recent dips in mortgage rates, which have fallen to the lowest level since early 2023, have significantly reduced monthly payments.
Locally, the median rent in the Charleston market is $2800 / month (this varies by submarkets) and is 33% higher than the national median.
The Lower rates have been much anticipated and is making home ownership more affordable for many buyers.
If you have considered buying a home, I would love to help you through the process, feel free to contact me anytime!
Charleston’s city housing authority plans to demolish and redevelop the Meeting Street Manor Extension public housing complex and has chosen a team for the job.
It’s a significant part of a larger plan to remake nearly 16 acres of the upper peninsula and add nearly 1,100 apartments to the area.
The big-picture plan calls for replacing existing low-income housing with a larger number of new apartments serving that population, plus many hundreds of workforce housing apartments for people with moderate incomes, and hundreds more for those with higher incomes.
Developers will provide the financing and handle the redevelopment, while the Housing Authority will continue to own the land.
The more than $90 million plan to redevelop the 44-unit Meeting Street Manor Extension complex calls for 230 apartments, amenities for residents, an internal 256-space parking garage and 13,500 square feet of retail space in new buildings on Meeting Street.
More townhomes are headed to Point Hope, the master-planned community minutes from Daniel Island. Construction of Berkshire on Clements Ferry, a 47-acre development, kicked off on Aug. 19.
The project will comprise 192 three-bedroom, 3½-bathroom rental townhome units. The residences will be divided into 36 three-story buildings arranged in six pods.
Mortgage rates continued to decline! While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years had an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in and may even fall further.
The recent drop in mortgage rates increases a buyer’s purchasing power – it is better than it’s been in almost two years AND there are more houses to choose from.
The chart below shows the mortgage rates affect in payment.
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.
*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
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
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.
*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
Approximately 1,928 new listings came online in August, well ahead of last year’s numbers, which should help drive sales later this year.
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.
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!
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.
Real Estate Matters in Charleston SC - Gena Glaze 