– Drew Grossklaus, Sales Director/BIC East Cooper
In comparison to last year, the third quarter of Charleston’s housing market saw reductions in sales for the months of August and September. The months decreased by 7% and 10%, respectively. The reductions also followed the national trend, with home sales down 2.2% in July and 4.2% in August. The median sales price did increase in July at 6.8% and August at 4.9%, while September was flat. While the trend may be surprising, it is worth exploring some of the factors influencing these developments.
One unique factor Charleston experiences in the third quarter is the weather. July, August, and September bring the highest temperatures to our area, and that tends to cool the housing market. This is also a time of transition as many families focus on final summer vacations and preparations before the school year begins. This may indicate why the Charleston real estate market saw a larger drop in the third quarter than the national average. We did experience other factors that were also felt on the national level. There was much anticipation of a possible Fed rate cut that could drive interest rates down.
The rate was cut by 50 basis points, but the mortgage interest rate did not move a lot, as the rate was already down due to anticipation of the cut. The continuation of military conflicts on two different fronts also led to unrest. Russia invaded Ukraine in February 2022, and the conflict shows no signs of ending. The Israel-Hamas war has now reached its year-mark in October, and the fighting continues. It has also been an unprecedented political cycle as the presidency, and possibly the House and senate are up for grabs. In presidential election years, we typically see buyers delay home purchases until after the election.
Even with fewer home closings in the third quarter, the statistics for 2024 versus the same time last year remain mostly positive or flat. Sales numbers so far in 2024 are flat versus last year, the median sales price is up nearly 4%, and the average sales price is up 10%. In Charleston, I believe that the final quarter will finish strong, and sales will finish up slightly from 2023. I think many buyers will see stronger inventory and be ready to purchase after the election and move into new homes before the end of the year. We will be watching all factors closely as we assist both buyers and sellers in the last quarter of 2024.
