Third Quarter Results Indicate A Bright Future Ahead For Charleston Real Estate
Year to date, Charleston real estate transactions are up 10.5% and the median sales price is up 5% compared to last year. As we move into the 4th quarter, it’s looking more and more likely that 2016 will be the second most active year the Charleston real estate market has ever had, with well over 16,000 transactions. Meanwhile, at $254,000, the median sales price for a single-family home in Charleston is at an all-time high.
“Is this another bubble?” This is one of the most frequently asked questions we’ve been hearing this year at Charleston Preferred Properties. The answer is no. In truth, a 5% increase in median sales price over the period of a year is quite reasonable, especially when the national average is 4%. Charleston is a highly desirable coastal city with a great climate and an array of attractions that support a diverse variety of lifestyles. With these attributes, it’s logical that we are out-performing the national average on home values.
Another key reason why we are not experiencing another real estate bubble is that credit availability is so much tighter than it was back in 2005-2007. Lenders now have much stricter guidelines to ensure that borrowers are qualified and can afford their payments. The loans made today are so much smarter than they were a decade ago.
For both buyers and sellers, the future for Charleston real estate is brighter than you may think.