2024 Edition
The past year has witnessed a gradual stabilization for the U.S. housing market, with Charleston reflecting many national trends while maintaining its unique appeal. As mortgage rates began to ease from their previous highs, we saw a cautious resurgence in market activity. The Charleston area experienced a modest increase in overall median sale prices, indicating sustained demand despite economic uncertainties.
Single-family homes saw a more pronounced price increase in sale price – 4.1% – compared to townhomes and condominiums whose prices inched up by only 0.5%. This divergence suggests a continued preference for larger living spaces, possibly influenced by evolving work-from-home trends.
The market showed signs of improved balance, with active listings increasing by 8.9% compared to the previous year. This uptick in inventory provided more options for buyers though the market remained competitive, particularly in desirable neighborhoods.
Despite challenges, including ongoing affordability concerns and economic fluctuations, the Charleston real estate market has demonstrated resilience. The region’s strong job market, quality of life, and coastal allure continued to attract both local and out-of-state buyers, contributing to the market’s stability.
As we move into 2025, we anticipate further normalization of the market, with potential for increased activity as buyers and sellers adjust to the evolving economic landscape.
By the Numbers
Sales
Pending sales remained stable with 17,543 in 2024, a minimal decrease of 0.01% from 2023. Closed sales saw a slight decline of 0.76%, ending the twelve months to October 2024 at 17,207.
Listings
The number of homes available for sale increased significantly in 2024. There were 4,531 active listings at the end of October 2024, up 34% from the previous year. New listings rose by 12.3% to 23,856.
Showings
Compared to 2023, the average number of showings before pending decreased from 9.6 to 8.5, indicating less competition among buyers.
Distressed Properties
In 2024, the percentage of closed sales that were either foreclosure or short sale increased to 0.790%, up from 0.657% in 2023.
New Construction
Months of supply for New Construction homes ended 2024 at 2.8 months, a slight increase from 2.6 months in 2023.
Prices
The overall median sales price increased by 3.75% to $415,000. Single Family home prices rose 4.1% to $437,220, while Townhouse-Condo prices saw a modest 0.5% increase to $346,663.
Real Estate Sales
The number of single-family home sales averaged about 14,500 annually in the few years before 2020, and then during that year the number of home sales surged to 16,731. This upward trajectory peaked dramatically in 2021 with a staggering 19,365 homes sold – a clear reflection of the pandemic-driven demand.
However, what goes up must come down. We’ve seen a gradual cooling since that peak: 16,969 sales in 2022, 13,965 in 2023, and 13,529 in 2024. This recent stabilization suggests a market finding its new normal.
The condominium and townhome market mirrored this trend, albeit on a smaller scale. From a steady average of about 3,300 sales annually before 2020, we saw a jump to 3,855 in that year and a peak of 4,739 in 2021. The subsequent cool-down was more pronounced, dipping to 2,774 in 2023 before showing signs of recovery with 3,182 sales in 2024.
Home Sales
No Data Found
A clear narrative emerges at the surge in sales during 2020 and 2021 rapidly depleted our housing stock, outpacing new listings. This imbalance led to the inventory squeeze we’ve been experiencing.
As we move forward, the stabilizing sales numbers and gradually recovering inventory suggest a market that’s finding its equilibrium. For buyers, this could mean more options and potentially less frenzied competition. For sellers, while the peak frenzy has passed, demand remains healthy, especially in our unique Charleston market.
A percentage-based analysis of home sales reveals interesting patterns in Charleston’s housing market. While all housing types experienced a dramatic surge in 2020-2021, their recovery paths have diverged.
Single-family homes, after peaking at 32.8% above pre-pandemic levels in 2021, have settled into a new equilibrium at 7.2% below baseline in 2024. In contrast, the condominium and townhome market – despite a sharper initial correction – has shown remarkable resilience, rebounding to just 3% below pre-pandemic levels.
This divergence suggests a potential shift in buyer preferences, possibly reflecting renewed interest in urban living as well as a move towards more affordable housing options. These trends underscore the importance of understanding specific market segments when making real estate decisions.
Homes Sales (% of 2016-19 average)
No Data Found
Housing Inventory
The Charleston housing market has shown resilience and adaptability over the past decade. From 2016 to 2019, we saw stability with an average of 5,829 homes available annually. The COVID-19 pandemic disrupted this trend, causing inventory to plummet to 2,246 properties in 2021, less than half the pre-pandemic average.
Recovery began in 2022, with inventory climbing to nearly 3,500 homes available that year. This upward trend continued and in 2024 we have seen a substantial rebound to 4,505 available homes during the twelve months through October. While still below pre-pandemic levels, this 33% year-over-year increase signals a market finding its balance.
The overall rise in median sale prices – particularly for single family homes – suggests continued demand, possibly influenced by remote work trends. The more modest growth in townhouse and condominium prices might indicate a shift in buyer priorities or increased inventory in this segment.
This recovering inventory offers more choices for buyers while maintaining healthy demand, potentially leading to a more stable, sustainable housing market for Charleston.
Housing Inventory
No Data Found
Real Estate Price Trends
The period from 2020 to 2022 witnessed home prices in all sectors climbing in lockstep, suggesting a robust market demand during those challenging years. This synchronized growth hints at broader economic factors driving the entire housing market. 2022 marked a turning point, with both resale and new construction prices hitting a plateau. This pause could reflect a market catching its breath after rapid growth, as well as the reality of buyers reaching their affordability limits.
An interesting twist comes in 2023 – while new construction prices remained steady, resale prices took off dramatically. This divergence raises interesting questions. Are established neighborhoods becoming increasingly desirable? Is there a shortage of existing homes pushing up prices? Or are rising construction costs making it harder for new builds to compete on price?
This split trajectory offers valuable insights for buyers, sellers, and investors in the Charleston real estate market. It underscores the importance of considering not just overall market trends, but the specific dynamics of resale versus new construction properties.
Average Sale Price
No Data Found
The Charleston real estate market exists as a relatively diverse set of communities, and the differing price trends between them can reflect their individual responses to evolving market demands. Historic Charleston and Daniel Island demonstrated robust growth with increases of 16.7% and 20.4% respectively, indicating sustained demand in the luxury segment.
Folly Beach experienced the most significant appreciation at 41.8%, likely driven by the increasing availability of inventory for buyers with sustained interest in coastal properties. Immediately conflicting with that notion, Isle of Palms was the sole area to register a decline with a 4.4% decrease, possibly reflecting fluctuations in that particular high-end market.
Mount Pleasant and James Island also saw notable double-digit growth, reinforcing their appeal as desirable residential areas. West Ashley and North Charleston showed more moderate price increases, maintaining their positions as relatively affordable options within the region.
These varied trends underscore the complexity and diversity of Charleston’s real estate landscape, with each submarket responding differently to local and broader economic factors.
Price Changes by Area
No Data Found
2024 marked a year of stabilization and recalibration for Charleston’s real estate market. We witnessed a cooling from the pandemic-driven frenzy, with sales volumes finding a new equilibrium and inventory gradually recovering. Price trends varied significantly across different areas, highlighting the diverse nature of our local market. The resilience of the condo/townhome sector and the continued appeal of coastal properties were particularly noteworthy.
Looking ahead to 2025, we anticipate:
- A continued, gradual increase in inventory, offering more options for buyers.
- Modest price appreciation, likely in the 2-3% range for most areas.
- Increased interest in urban and near-urban properties as remote work trends stabilize.
- Ongoing demand for coastal properties, though perhaps not at the dramatic rates seen in 2024.
- A potential uptick in new construction to address inventory shortages.
These predictions are based on current trends and will certainly be influenced by broader economic factors – particularly fluctuations in mortgage interest rates and potential changes to national housing policies. All things considered, I anticipate we’ll see a substantial increase in housing inventory leading to sustained home sales. This will likely be driven by homeowners who have been reluctant to relinquish their very low mortgage rates – every quarter-point drop in mortgage rates could welcome more home sellers back into the market, potentially creating a domino effect of increased inventory and sales activity.