2019 Mid Year Market Report
The quarterly statistics are in, and the overarching theme is a market in transition. While we have seen strong gains in a few sub-markets, overall the data suggests a flat or slightly lower trend in average sale prices market-wide. We have seen strong gains for many consecutive years and this normalization is consistent with historical cycles and reports from other markets across the country.
Average sold price is down in several sub-markets including West Ashley, James Island, the older sections of North Charleston, and most significantly in historic Downtown. Historic Downtown homes are seeing average sale price drop year over year- 11% overall in Q2. Downtown above the crosstown shows a drop of 13% year over year. Opinions vary, but pricing may be to blame for this drop as we have seen an increase in list prices for the past several years and increased average negotiation off list price. 2019 averages show 10% negotiation off original list price in historic downtown, while 2018 averages were slightly less – at 8% off original list price. Some properties are coming on market with overly-ambitious pricing, which results in reductions and increases in days on market, eventually culminating in a lower sale price than anticipated.
A bright spot continues to be the higher end new construction markets, confirming “on the ground” reports of buyers preferring move-in ready or recently built homes. Mount Pleasant has long been a hybrid of old and newer homes, and this market is showing flat numbers, where Daniel Island and Wando (almost entirely new construction markets) are up slightly. The beach markets of Isle of Palms are very strong with many new homes replacing older inventory – Isle of Palms shows a gain of 14% in price over Q2 2018, and Sullivan’s Island has posted an astonishing 29% average sale price jump over Q2 2018. Low inventory on Sullivan’s continues with fewer sales and several high dollar new construction closings. With lot prices exceeding $1M, the price per square foot values may be a bit deceiving on the island but the story remains one of newer construction as a buyer preference.
Despite a slowing market, our firm has had a stellar 2019 so far, exceeding revenue projections and placing our firm in the top 20 of all companies in the Charleston area based on sales volume. Our annual production is up 28% over last year and number of transactions up by 76% year over year. As our company passes the $100M sales benchmark in the next week, we continue to provide exceptional service across the board to all our buyer and seller clients. We appreciate your support as we enter the second half of another great year for our company.
Reach out anytime for more personal analysis to learn about out how this dynamic, shifting market affects you and your real estate aspirations.