Charleston is the largest city in South Carolina and one of the cultural hubs of the South. For centuries, it has been a magnet for housing development and a leading area to see some of the most luxurious homes in South Carolina and the U.S. in general. Charleston truly is one of the gems of the South.
But the real estate market in Charleston varies widely from year to year. That’s why it’s important to get a clear view of the trends and patterns in the Charleston real estate market that are going on right now. Let’s take a deep dive into the forecast for 2023.
Charleston housing market forecast 2023
Let’s start our look at Charleston real estate by going through some of the major factors that can change it from year to year. We’ll consider the trends that we saw in 2021 and 2022, then compare them to the forecast we’ve developed for the remainder of 2023.
Home values increasing
At the current moment, in April 2023, we would call Charleston a strong seller’s market. That means that home values are increasing and the supply of homes for sale can’t keep up with the current demand. This is especially true for the luxury housing market, where sales of properties over $1m have increased nearly 50%. We can see that pattern extending all the way back to 2019.
Rising interest rates
Interest rates for homes have been on the rise across the country since mid-2022 at the earliest. It’s true that some states like California and Florida have experienced a greater rise in mortgage loan interest rates, but South Carolina isn’t far behind. The national average sits at 6.83%, while the average across South Carolina is slightly lower, at 6% to 6.75%.
Investing indicators will favor landlords
From December 2021 to 2022, we saw that about 22% fewer new listings entered the market, which helps to strengthen the seller’s market that has already defined Charleston since 2021. However, the city still contains a good proportion of available properties for new buyers to choose from. That generally means it’s a good time to be a landlord in Charleston, although the rental population has not dramatically changed in the city in recent years.
Negative net population migration
Across the entire city of Charleston, we experienced a net negative flow of residents out of the city. However, the data shows that the city is very close to an even net migration level, meaning that the total population has remained generally stable since 2019. Most new residents came from Florida, while most Charleston residents moved to New York.
Charleston County housing market trends 2023
The housing market in Charleston County in 2023 favors sellers over buyers at the moment. However, home values have leveled off since the city’s high point in 2022. The median sold price among all homes in Charleston in 2022 climbed 10% since 2021 to an average of $495,000. We expect that increase to soften in 2023, with home values still rising but not as drastically as the last two years.
How COVID-19 affected Charleston’s real estate market
COVID-19’s biggest impact was two-fold in Charleston. First, we saw home valuations skyrocket during 2020-early 2022. Also, we noticed a drop in the total number of new listings in the market. But, in general, the luxury real estate market remained extremely strong throughout the pandemic, with nearly 60% more homes above $1m hitting the market recently.
Charleston foreclosure statistics 2023
Charleston’s foreclosure market has a long history of being almost nonexistent, thanks to the great number of homes that pass down through generations and family members from year to year. That trend remained clear to see in 2023, with foreclosures making up only 0.5% of the market, down almost 2% from the same time in spring 2020.
Charleston median home prices 2023
The median price of homes across all price ranges in Charleston sits at just under $495,000. We saw the greatest increase in home prices among one to two-bedroom properties, while four and five-bedroom homes increased from 8.2 to 5.2%, respectively, in the Charleston real estate market.
Charleston real estate market: should you invest?
All the factors listed above make it a smart time to invest in real estate in Charleston, especially luxury real estate. The city is in a strong seller’s market thanks to a stable population influx, a moderate inventory of available homes, and the rising value of homes across the city. Now is the ideal time to invest rather than later in 2023.
Mount Pleasant
- Mount Pleasant is home to some of the newest construction in Charleston and it features among the highest-ranked schools in the city.
James Island
- A charming suburban area of Charleston, James Island is family-friendly and close to the major thoroughfares, making it ideal for commuters.
Downtown Charleston
- Located in the bustling historic heart of Charleston, properties here fetch record prices but offer unbeatable local connections to parks, museums, and schools.
Daniel Island
- Come to Daniel Island for a laid-back, casual, but upscale lifestyle that has the best of historic Charleston properties mixed with the open spaces of a country club.
Folly Beach
- Folly Beach is the picture postcard version of seaside living in Charleston. While not the most convenient location, it’s perfect as the site of a second home or beach property.
Get in touch with a local real estate agent today
With that, we’ve come to the end of our list of the ins and outs of the Charleston real estate market. However, there’s more to the patterns and trends in the housing market in Charleston that first meets the eye. If you have any questions or comments to share about Charleston, don’t hesitate to reach out! Contact the Andy Bovender Team today for more information.
