Residential Properties SOLD through the Charleston Trident Multiple Listing Service for July 2018
Greater Charleston Area – 579
Mount Pleasant – 266
Summerville/Dorchester County – 355
Goose Creek/Moncks Corner/Berkeley County – 407
Daniel Island – 32
Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present.
Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets. New Listings were up 0.3 percent to 2,049. Pending Sales increased 10.9 percent to 1,759. Inventory shrank 12.6 percent to 5,275 units. Prices moved higher as Median Sales Price was up 3.7 percent to $268,583. Days on Market decreased 9.8 percent to 46 days.
Months Supply of Inventory was down 15.0 percent to 3.4 months, indicating that demand increased relative to supply. Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else.
With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.