A Healing Housing Market: Better Balance Between Supply and Demand in Lowcountry Real Estate
A Shift in the Lowcountry Real Estate Market
Only three short years ago, Jordan Smith and Brandon Bishop were just another couple paying rent and dreaming of owning a home of their own. The dental assistant and crane operator duo patiently saved for one year to build up a downpayment and cover prospective closing costs. With hope in their hearts, they set their sights on a charming homestead out in the rural landscapes of southern Charleston County, where they planned to raise goats and chickens.
The journey to homeownership was littered with roadblocks – from unexpected hikes in interest rates to repeated unsuccessful offers. Close to admitting defeat and moving back with their parents, their diligent realtor, Joel Torres, uncovered a hidden gem. An inviting 1,848-square-foot ranch off a quiet dirt road in Ravenel awaited them, nestled on a generous 1.4-acre plot that was perfect for their animal-farming dreams. In July, they closed the sale at $256,000.
“I’m excited to move out of the nest,” commented Smith. “I thought I would have to live with my mother forever.” Their sentiment is shared by countless other local renters who have braved the tumultuous real estate scene over the past three years. But as we wave goodbye to Covid, the Lowcountry housing market has begun its healing process.
Beyond the Pandemic: Real Estate Now
The past three years saw escalating house prices, soaring interest rates, and a grave inventory shortage. But as time marched on, so did the market, and a significant turning point is on the horizon. As potential buyers waved their dreams of 3% mortgages goodbye and sellers resigned themselves to letting go of their low mortgage deals, a shift in the landscape occurred. The anxiety of transitioning life phases in a volatile market was replaced with acceptance. Moreover, the realization dawned that waiting could lead to a dangerous trap – even higher prices in the sizzling Charleston-area circuit. Prospective buyers are returning to the hunt, injecting the market with a fresh optimism about 2024 home sales.
The Market Correction
The market correction began in January of this year, and the numbers are backing it up. According to recent data, residential listings have seen a 17% spike this year, increasing the inventory for homebuyers. Two years ago, prospective buyers were left with a slim pickings of 2,000 houses in the entire tri-county area. Now, with the inventory crossing the 4,000 threshold, a much-needed balance between supply and demand is in sight.
Price-wise and Nice
However, while things are gradually improving, a distinct divide in the market is emerging. “Homes that are priced right and don’t have black eyes are selling quickly, almost the same as two years ago. Anything aspirationally priced is just sitting there,” says Charlie Inglefield, broker-in-charge at The Exchange Company. As per recent statistics, houses now sell within five weeks on average, as compared to a two-week timeline two years ago.
However, the escalating influx of prospective buyers continues to tip the scales in favor of demand over supply, causing median home prices to rise to $420,000 in August – a hefty 16% increase since last year. The unfortunate consequence of this imbalance is the persistence of the affordability crisis. As it currently stands, the quintessential middle-class family can afford a house selling for no more than $306,000, assuming they can cover the downpayment and closing costs.
The Forecasted Housing Scenario
To weather the affordability storm, potential buyers are looking to the north of the county, specifically towards Summerville. Even so, affordability remains a pressing issue. As such, real estate professionals advise patience. As Sarah Coleman-Lee, an agent with Realty One Group Coastal, highlighted, “I always give my clients a snapshot of what the market looks like and set expectations so they don’t get frustrated and walk away. They have to understand it may be many months, and they may have to make many offers. A big part of doing that for me is staying on top of what’s out there.”
When opportunity comes knocking, potential homeowners, like Jordan Smith and Brandon Bishop, need to be ready to seize it. With the right guidance, persistence, and a bit of patience, the dream of homeownership is slowly but surely becoming a reality in Lowcountry. And if you’re wondering, their first goat will indeed be named Joel, after their realtor.
