Tides are Turning in Lowcountry’s Real Estate Market
The real estate market in Lowcountry has faced its fair share of ups and downs in the past few years. People like Jordan Smith and Brandon Bishop, a dental assistant and a crane operator respectively, know this all too well. They saved for a year to scrape together the cash for downpayment and closing costs, only to face a spike in interest rates and a sheer shortage of houses on the market. Their dream of buying their own home in the southern Charleston County seemed close to impossible.
But things are now looking up! The housing market in Lowcountry is healing and achieving a better balance between supply and demand. Buyers have adapted to the new interest rates, and potential sellers who once held tightly to their low mortgage deals are now realizing they need to get on with their lives. And this passage of time has brought relief to the market.
Healing Market Brings Optimism
Three years of soaring prices, increasing interest rates, and a near-total lack of inventory couldn’t stop people like Jordan and Brandon from wanting a place of their own. Thanks to their realtor’s diligence, they finally purchased a beautiful ranch in Ravenel this July for $256,000. And their happiness is contagious! The housing market seems to be rebalancing, bringing more opportunities to buyers and creating more work for real estate agents and mortgage lenders.
According to the Charleston Trident Association of Realtors (CTAR), an influx of 17% in listings this year added more houses for buyers to choose from. The market now has a better balance of inventory, with around 4,500 listings, which is closer to a natural supply-demand balance.
The Middle Still Remains Absent
However, there’s a catch! Despite the inflow of new houses on the market, the prices are still increasing. The influx of people moving to the area, combined with the constraints on building properties due to the marshy nature of the region, has led to a housing shortage. The pinch of such shortage can be eased by the construction of multi-unit, multi-story residences, often sold as townhouses and condos. The dilemma is that municipalities and their residents have been wary to approve these developments for fear of intensifying traffic woes.
As the region grows, it’s important to provide ample housing for employees. An insufficient provision can deter companies from investing in the area, slowing down the growth engine. For now, real estate experts are predicting a demand surge and value escalation for the Charleston market.
To the North, We Go!
Due to affordability issues, buyers able to compromise on beach-side living are turning towards Summerville’s north. But, even there, finding affordable housing is a challenge. Sarah Coleman-Lee, a real estate agent, sees many clients struggling to find homes they can afford around Summerville. The answer to this is patience, according to Coleman-Lee.
No Bidding War and Increasing Affordability
One good news is gone are the days of bidding wars on dilapidated properties at their first showing. Buyers are now negotiating prices and extracting concessions from sellers again, as was the norm during pre-Covid times. And yes! Today, the average home sale garners around 97% of its list price, not exceeding the asking price, as was common during the Covid era.
Despite the challenges and obstacles, the tides are finally turning in Lowcountry’s real estate market. People still dream about owning a home, and they now have more chances to make that dream come true. Just like Jordan Smith and Brandon Bishop, may everyone find their dream home soon – with or without a goat named Joel!
