What Can You Expect from the Charleston Market in 2015?

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It's hard to believe, but the end of the year is upon us! With 2015 right around the corner, there's no better time to take a look back at what we saw in the Charleston real estate market in 2014.

It's been a fantastic year for values in the Charleston area, as the median home price is up 9% from this time last year. The average days on market has been consistent over the last 12 months, hovering around 79 days. While that's pretty low, it's not quite as low as my listings' average market time, which sits at only 32 days. 

Currently, interest rates are at 4% in Charleston. At the housing peak in 2007, the median sales price reached a height of $207,000 before the crash. In February of this year we actually passed that number, and the median sales price now sits at $217,000. Despite the highs and lows we've seen in the last decade, home prices have trended to where they were expected to, according to historic price line data. 

The most recent housing affordability indicates that Charleston is still a very affordable place to own a home. This rating doesn't take into account our ridiculously cheap property taxes, which makes living here even more affordable than the report indicates. 

Looking ahead to 2015, we expect our inventory to remain low throughout the year and listings to see an appreciation around 5% to 7%. Interest rates are expected to rise to 5%. Even though a 1% increase doesn't sound like a lot, that rise will actually decrease your buying power significantly. In other words, for the same monthly payment, you can only afford a home that is 10% less. This is definitely something to keep an eye on as new construction projects come onto the scene in the new year, as they will have both positive and negative effects on home values in the area.

Please stay tuned for our next video, as we'll talk about raising money for foster children around the Charleston area. If you have any questions about market conditions in your specific area, or would like real estate assistance of any kind, don't hesitate to give me a call or shoot me an email. I would love to give you a hand!