Charleston SC Housing Market Latest Trends April 28th 2025 In March, Charleston SC existing home sales fell 5.9% to a seasonally adjusted annual rate of 4.02 million units, the slowest pace since the 2009 financial crisis. This decline is attributed to high mortgage rates and record-high home prices, with the median existing-home price reaching $403,700—a record high for March. The luxury segment of neighborhoods like South of Broad, The Old Village, and Kiawah Island saw moderate increases in sales for homes over $3 million, indicating that higher-end properties remain in demand. However, homes are staying on the market longer, averaging 36 days, reflecting buyer hesitancy, I contend uncertainty with tariffs and economic shifts being the biggest factor. On a year-over-year basis, sales were down 2.4%, with all major regions experiencing monthly declines. Factors Influencing the Market 1. Elevated Mortgage Rates: The average rate for a 30-year mortgage has risen to 6.9%, discouraging potential buyers and reducing refinancing activity. With so many current owners having mortgages in the 3s & 4s, unless forced to sell those owners are hanging onto their homes reluctant to make a move. 2. Economic Uncertainty: Volatile stock markets and policy actions, including tariffs, have spooked prospective homebuyers, leading to increased caution and withdrawal from the market. 3. Affordability Challenges: Despite a slight increase in inventory, affordability remains a significant barrier, especially for first-time buyers. Generically speaking from a national perspective Sales declines are observed across all regions: Northeast (-4%), Midwest (-1%), South (-1.6%), and West (-2.6%). According to CNBC, sales fell despite a sharp increase in available listings. At the end of March, there were 1.33 million units for sale, an increase of nearly 20% from March 2024. In the Charleston SC metro region of Charleston, Berkeley, and Dorchester counties at the current sales pace, that is equivalent to a 4-month supply, which is still on the lean side. A 6-month supply is considered a balanced market between buyer and seller. Future Expectations Looking ahead, the housing market may continue to face challenges: Mortgage Rates: Rates are expected to remain elevated, potentially averaging 6.5% early in the year and dropping slightly by the end of 2025. Which as the one time owner of a very successful mortgage company in South Carolina, I can anticipate buyers to want to continue to hold off as long as they can, hoping for a rate drop. Inventory Levels: While inventory has seen slight increases, it remains below the level needed for a balanced market, contributing to ongoing affordability issues. While we have needed a market corrections for years to bring prices to more affordable levels, increases in inventory are beginning to creep up. The Charleston SC housing market is currently characterized by a slowdown in sales, high mortgage rates, and affordability challenges. While certain segments, like luxury homes in Charleston, show resilience, the overall market faces headwinds that may persist through 2025. Potential buyers and sellers should stay informed and consider these factors when making real estate decisions.
Ten Ways to Turn off a Potential Home Buyer Well, even though the jobs report wasn’t as bad as expected that still doesn’t mean our country is out of the quagmire yet. Especially when it comes to housing. Some figures estimate 1 in every 400 homes is being foreclosed on, and there is expected to be as many as 10 million short sales over the next 5 years. What does this mean for you as a seller? Losing a buyer for something not related to a serious disagreement over price is careless. So here are the 10 things you need to be careful of when trying to sell your home. Below are the most common things that will make buyers turn their nose up at a home for sale in Charleston SC, especially when the market is cooling off and becoming a buyer’s market. In a recent article by MoneyWise, “We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons,” said Rafael Corrales, an agent in Miami, where about 2,500 home purchases were canceled in June (or 17.6% of homes that went under contract). Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue.” About 56,000 home purchases were canceled, equal to 15% of homes that went under contract—the highest percentage of any June on record. Buyers are skittish due to elevated mortgage rates and record-high home prices. Dirt -Hands down, our panel agrees: Nothing turns off a buyer quicker than a dirty house. Odors – Buyers, it’s said, buy with their noses. Make sure your home smells fresh and inviting. Old fixtures – Want buyers to roll their eyes? Leave old fixtures on your doors and cabinets. Faded, worn, broken, outdated, and ugly fixtures will surely turn away buyers. Sure you can replace them, but people want to move right into a house without having to do work. Wallpaper – Your grandmother may have had it in every bedroom. Your mom may have loved it as a room accent. But today’s buyer wants no part of wallpaper. Popcorn / acoustic ceilings – Times change, and with them home decor styles. Acoustic popcorn ceilings, once the must-have for fashionable homes in the ’60s and ’70s, now badly date your space. Too many personal items – Psychologically, when buyers tour a home, they’re trying it on to see how it fits, just as they would a skirt or a pair of pants. If your house is cluttered with too many personal items, it’s like the buyer is trying on those clothes with you still in them. A fit is unlikely. Snoopy sellers – Its best not to be at the home when there is a showing. Buyers want to walk and analyze at their own leisure without the sellers 2 cents every few minutes. Its perceived as a hard sell. If you must be there, only be there to answer questions about the home and nothing else. Pretend to be invisible. Misrepresenting your home – Misrepresenting your house online in the Multiple Listing Service is a sure way to really upset buyers and their Realtors. If I show up with my buyers and the house is NOT what the sellers agent says it was on MLS I am going to be upset and so is the buyer for wasting our time and gas to go see it. Too many seller’s agents in an effort to get more feet through the door will “embellish” the home or property. For example, one that bothers me the most as a Realtor is when a home is labeled “waterfront” when really the home is just next to a small rain run-off retention pond. Poor curb appeal – Much is made of curb appeal, and for good reason: It’s your home’s handshake, the critical first impression that lasts with most buyers. This one is HUGE deal. People want to come home to a beautiful home when they drive up, and the first impression people get of you is your home from the outside. Clutter – Whether inside or out, less is more when it comes to clutter. IF you’re considering listing your home in South Carolina for sale, please feel free to reach out to the James Schiller Team, of Brand Name Real Estate and we’ll be happy to give you an honest market analysis of your home free of charge so you can avoid picky buyers leaving too soon.
Jumbo Mortgage Loans Charleston SC As of 2024, the conforming loan limit for a single-family home is $726,200 in most parts of the United States. Any loan amount above this threshold is considered a jumbo loan. However, in high-cost areas, including certain counties in states like California and New York, the conforming loan limit can be as high as $1,089,300. Loans exceeding this amount are also classified as jumbo loans in those areas. Jumbo loans typically come with stricter qualification requirements and higher interest rates, as they are not backed by Fannie Mae or Freddie Mac. *Jumbo mortgage rates in Charleston SC remain slightly higher than conventional mortgages due to the higher loan amounts and risks associated with them. These loans, which exceed conforming loan limits, generally have higher credit score and down payment requirements. Currently, jumbo rates average around 7.2%-7.5%, which is comparable to conventional mortgage rates but still on the higher side for larger loans. Looking ahead, experts predict that mortgage rates could trend downward throughout 2024 but will likely remain above 6%. Factors like further Fed rate hikes (if inflation resurges) or unexpected economic disruptions could slow this decline. Several analysts suggest that mortgage rates will end 2024 between 6.15% and 6.7% depending on the economic landscape. However, if the economy experiences a significant downturn or further rate cuts from the Fed, rates could drop even lower. Here in the Charleston, SC area it is no mystery that we have some very expensive residential luxury real estate, and unless borrowers have the cash to pay for it, often times they need jumbo loans. There are countless beach and water front homes on Kiawah, Seabrook Island, Daniel Island, Sullivan’s Island, Folly Beach and Mt Pleasant as well as homes downtown Charleston SC that exceed $10Million. Click see the latest updates on interest rates and lowest current mortgage rates. Jumbo mortgage loans are a higher risk for lenders. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence quickly for full price because less of the population can afford pricier homes. Luxury prices are more vulnerable to market highs and lows in some cases. That is one reason lenders prefer to have a higher down payment from jumbo loan seekers. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan. The interest rate charged on jumbo mortgage loans is generally higher than a loan that is conforming, due to the higher risk to the lender. It can be more expensive to refinance a jumbo loan due to the closing costs, because taxes, insurance and other related costs are so much greater. Some lenders will offer the service of an extension and consolidation agreement, so that a jumbo refinancer will not have to pay for mortgage tax again on the same principal balance. In other cases, title insurance companies will offer up to a 50% discount, often required by law for those refinancing within 1 year to 10 years. The largest discount is for refinancing within one year. Some consumers seeking a jumbo mortgage choose to seek advice from a competent professional familiar with jumbo mortgage loans. OPTION 2 – Some investment brokers and/or large investment firms will lend money to their clients for jumbo luxury loans but secure it against liquid assets they manage for them. Often times these loan are lower in cost since their is collateral backing the loan to the borrower.
Charleston SC Home Sales Show Improvement Charleston Trident Association of Realtors® — (May 9, 2012) – Median existing single-family home prices are firming in many areas of the low-country, while improving sales and declining inventory are creating more balanced conditions, according to the latest quarterly report by the National Association of Realtors®. Last April, preliminary figures showed 776 homes sold at a median price of $175,000, following an almost equal number of property tours. “The number of showings our REALTORS® are completing in 2012 is almost equal to the number of showings we saw in 2009, when the market was significantly depressed, but inventory was much higher. This tells us that the prospective buyers in today’s market aren’t just looking. They are serious buyers, making offers and closing transactions” said 2012 CTAR President, Herb Koger. The national median existing single-family home price was $158,100 in the first quarter, which is 0.4 percent below $158,700 in the first quarter of 2011. The median is where half sold for more and half sold for less. Distressed homes2 – foreclosures and short sales which sold at deep discounts – accounted for 32 percent of first quarter sales; they were 38 percent a year ago. Heading into what is typically the busiest season of the year, year to date figures reflect a market that is in the midst of sustainable, healthy growth. Inventory is 29% lower than it was at this time last year; sales volume is almost 6% ahead and prices have increased a healthy 4% from this time last year. Total existing-home sales,3 including single-family and condo, increased 4.7 percent to a seasonally adjusted annual rate of 4.57 million in the first quarter from a downwardly revised 4.37 million in the fourth quarter, and were 5.3 percent above the 4.34 million level during the first quarter of 2011 when sales spiked. We are seeing more people coming back into the investment and second home market buying homes for sale in places like Isle of Palms and Sullivan’s Island. Mount Pleasant SC custom home builder-owner of Sand Dollar Homes, said there are more opportunities in today’s market. “Historically favorable housing affordability conditions are making it easier for buyers to enter the market despite the unnecessarily tight credit conditions,” he said. “Housing supply and demand are roughly balanced with overall housing supply at the lowest level in six years, putting sellers on an even footing with buyers in most markets.” CTAR REPORT – Berkeley County 170 homes sold at a median price of $154,945 in Berkeley County in April. This represents even sales and an increase in pricing compared with April 2011, when 170 homes sold at a median price of $145,000. Charleston County 476 homes sold at a median price of $228,125 in Charleston County in April. This represents an increase in sales and pricing from April 2011’s 451 sales at a median price of $208,000. Dorchester County 151 homes sold at a median price of $165,000 in Dorchester County in April. This represents a significant increase in both sales volume and pricing, as 129 homes sold at a median price of $147,490 in April 2011.
Charleston SC – Top 5 for Housing Improvement According to many experts in housing and economics there will be a few place in the next coming years where buying real estate is a good investment, and Charleston, South Carolina is one of them. Read the recent article by MSN. Home prices of course, are variable and depend on many factors, each of which is difficult to predict. Still, average home prices will drop by 7.9% nationwide in 2010, according to Moody’s Economy.com. In the few areas where there could be positive price growth, the projected increase is modest. “These areas will essentially be flat next year,” says Steve Cochrane, managing director at Moody’s Economy.com. The top 5 cities for home prices Tacoma, Wash. (+2.44%) Memphis, Tenn. (+0.99%) Pittsburgh (+0.89%) Charleston, S.C. (+0.18%) Seattle (-0.50%) Smaller areas across the Southeast are expected to fare well in 2010 primarily because they fared relatively decently during the housing crisis, says Jeannine Cataldi, a senior economist at IHS Global Insight. “They didn’t have such a big run-up, and they have a diverse economic base that enabled them to stay stable,” she says. Home prices in Charleston, South Carolina didn’t get out of line with household incomes; also, Boeing is investing in a fairly large manufacturing plant there, which could create some potential for income and job growth, says Cochrane. In short; these pockets of the country share a few important characteristics. One is that they are starting with a limited supply of housing stock. Another is that throughout most of the decade, prices basically stayed in sync with household income, says Cochrane.
Saving Your Home From a Foreclosure Well it goes without saying that we are in tough times economically as a country, and even more so as it pertains to real estate. With all the bad news we hear about real estate and the economy there is some good news to report. Even though our government is has made many mistakes with our money recently it appears as if those in the white house are doing their best to help homeowners. There is a new program to help those who can’t afford their homes any longer quickly sell their homes (that’s relative) without being forced into foreclosure. It’s called (HAFA) or Home Affordable Foreclosure Alternatives program. You can read the pasted details of the program from RISmedia.com website: HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure by improving the process. Specifically, HAFA will: • Complement HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home. • Use borrower financial and hardship information already collected in connection with consideration of a loan modification under HAMP. • Allow borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds). • Prohibit the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%). This is to ensure the seller/borrower can still utilize the expertise of a real estate agent. • Require borrowers to be fully released from future liability for the first mortgage debt and if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed). • Use standard processes, documents, and timeframes/deadlines. • Provide financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis; up to 3% of the unpaid principal balance of each subordinate loan). HAFA is a complex program with 43 pages of guidelines and forms. To help everyone better understand the process, below are some frequently asked questions that address the basics. What is HAFA? Initially announced on May 14, 2009, with guidance and standard forms issued on November 30, 2009, the program will help owners (referred to below as borrowers) who are unable to retain their home under the Home Affordable Modification Program (HAMP). A borrower (the current owner) may be able to avoid a foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL) under HAFA. The guidance and forms released on November 30 do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. Those enterprises will issue their own HAFA guidance and forms. Who is eligible for HAFA? The borrower must meet the basic eligibility criteria for HAMP: • Principal residence. • First lien originated before 2009. • Mortgage delinquent or default is reasonably foreseeable. • Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings). • Borrower’s total monthly payment exceeds 31% of gross income. How is the program being implemented? Supplemental Directive 09-09 (November 30, 2009) gives servicers (those who process payments) guidance for carrying out the program. All servicers participating in HAMP must also implement HAFA in accordance with their own written policy, consistent with investor (lender) guidelines. The policy may include such factors as the severity of the loss involved, local market conditions, the timing of pending foreclosure actions, and borrower motivation and cooperation. A short sale agreement (SSA) will be sent by the servicer to the borrower after determining the borrower is interested in a short sale and the property qualifies. It informs the borrower how the program works and the conditions that apply. After the borrower contracts to sell the property, the borrower submits a “request for approval of short sale” (RASS) to the servicer within 3 business days for approval. If the borrower already has an executed sales contract and asks the servicer to approve it before an SSA is executed, the Alternative RASS is used instead. The Servicer must still consider the borrower for a loan modification. What are the steps for evaluating a loan to see if it is a candidate for HAFA? 1. Borrower solicitation and response. 2. Assess expected recovery through foreclosure and disposition compared to a HAFA short sale or DIF. 3. Use of borrower financial information from HAMP. (May require updates or documentation.) 4. Property valuation. 5. Review of title. 6. Borrower notice if short sale or DIL not available (to borrowers that have expressed interest in HAFA). What are the HAFA rules regarding real estate commissions? The guidance states that a servicer may not require a reduction in the real estate commission below the amount stated in the SSA. The SSA states that the servicer will pay the commission as stated in the listing agreement, up to 6%. If the servicer has retained a vendor to assist the listing broker, the vendor must be paid a specified amount from the commission. Neither buyers not sellers may earn a commission in connection with the short sale, even if they are licensed real estate brokers or agents. They may not have any side deals to receive commission indirectly. What else should I know? • The deal must be “arms length.” Borrowers can’t list the property or sell it to a relative or anyone else with whom they have a close personal or business relationship. • The amount of debt forgiven might be treated as income for tax purposes. Under a law expiring at the end of 2012, however, the tax may not apply. Forgiven debt will not be taxed if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Check with a tax advisor. • The servicer will report to the credit reporting agencies that the mortgage was settled for less than full payment. There will be a negative effect on credit scores. • Buyers may not reconvey the property within 90 days after closing. When does the program end? Short Sale Agreements must be executed and returned to the servicer no later than December 31, 2012
Understanding SC Wind Insurance Charleston SC I must admit living in Charleston, SC is very nice, but lets face it living in a coastal city can be very expensive as compared to living inland. There are inherent risks to living in a coastal town and the biggest one is the risk of a hurricane and who wants to lose their home? No one. When hurricane Katrina hit LA, State Farm lost $$ billons of collected premium over 58 years in just 8 short hours. Truth is insurance companies do not ever want to pay out from a catastrophe, but they have to and they know it. SO in order to compensate for an inevitable occurrence of a hurricane the only thing they can do is increase premiums, or have higher premiums to stuff their pockets in the event of a loss. A dollar and eleven cents ($1.11) is paid out in wind claims for every dollar ($1.00) collected in premium. Most companies that write in the eastern coast of the US have an allotted amount of policies they are allowed to write as determined by their powers that be. If they have exceeded that amount and/or feel they have more policies then is safe for their solvency; the only way they can reduce their exposure is to increase your premiums and hope you go elsewhere, or cancel you. Luckily South Carolina has been one of the smarter states by carefully devising a plan to ensure the coastal residents have sufficient hurricane coverage. The SC Dept of Insurance has worked tirelessly to devise a system for keeping adequate carriers interested in offering insurance in the state. There are two types of coastal insurance carriers. Those who include wind coverage and those who don’t, and the truth is that there are very few insurance companies that care to write insurance on the coast and include wind coverage. Wind coverage alone will make up 80%+ of your premium expense. If your home is in what’s called the “wind zone” then you will be required to specifically have wind coverage. Just because your home isn’t in the “zone” doesn’t mean you are not out of harms way when a hurricane comes. This just means that you won’t have to have a carrier that offers wind coverage specifically and your traditional hazard policy will coverage the damages, however usually with a higher deductible. If your home or business is in the wind zone then either you have to find a carrier that offers wind coverage OR you will have to get separate coverage from the SC Wind & Hail Underwriting Association. A non-state agency but a separate organization designed by the state comprised of insurance companies that write in SC that contribute a portion of their earnings to a “pool” of money used to cover the residents that reside in the coastal areas. The SC Wind Association is even further insured by many domestic, and international re-insurance companies in the event it goes insolvent and is unable to cover all filed claims. When buying a home you need to ask your real estate agent to see if the homes they are showing you are in one of the two wind zones, because it could dramatically increase your monthly expenses. Also, you should ask if the home is in a flood zone, because that too is an additional coverage separate from traditional hazard or home owner’s coverage.