Things you should know about the Charleston real estate market


Things you should know about the Charleston real estate market


No matter where you live, the real estate market can be daunting. Not only do prices and demands fluctuate at a moment’s notice, but it also requires conviction when buying or selling a home. Buyers need to get offers in on a home as quickly as possible to avoid having their desired property snatched away by another buyer, and sellers have to price with intent to move or they’ll be on the market for months.


With that said, here are a few trends to keep an eye on in the new year:


Federal Reserve rate cuts


The Federal Reserve did cut their rates at least three times last year. The reason is that some experts miscalculated the run-up rates the year before. Due to the miscalculation, they had to do some damage control.


As of now, the Fed does not intend to cut the interest rates. They feel that the market is doing well, as is the economy. They do not feel the economy is going to take any sort of drastic dive, which is great news for homebuyers. The current long-term loan rate is for 30 months, at four percent. That is going to work well for Millenials and others who want to invest long-term.


This move makes it less difficult for homebuyers who have been biding their time on the sidelines. They can now afford to pounce on what they consider a great offer.


Prices are increasing


The average home value is expected to rise by about 5% in the upcoming year, which makes it important to understand how much home you can afford when going into a buy. Luckily, there are mortgage calculators available to help you discover what you can afford. When you combine that price rise with the amount of homes being sold in the Charleston area – over 18,000 in 2019 – you can also predict that there will be plenty of homes on the market.


The price rise might also give you more time to move on a home than usual, as well.


Expect an apartment surplus


On the other end of the spectrum, there happens to be an apartment surplus.


In Lowcountry, there are going to be apartment vacancies. Apartment prices are rising fast. There are a lot of people who cannot afford the prices right now. That means those apartments will be vacated.


The silver lining is that the new supply will outweigh the demand. According to some experts, that should keep some of the prices in check for a while. When you consider the fact that the  average apartment price in Charleston already costs roughly $1280 per month, that should be good news for those looking to rent.


Things to consider before you buy


Firstly, the Charleston market is as stable as they come. It’s a market that’s consistently gaining property value and has a healthy amount of purchases. The market’s as safe as you could reasonably expect, and should provide comfort of mind as you search for a home.


Also, homebuyers are going to need to collect a few documents when applying for a mortgage. Collect your W-2s from the previous two years, and your banking statements from the last 12-months. You will also need your tax returns from the previous two years and any investment documents you have.


You will also need to save for the down payment and closing costs(at minimum) before you sign the contract. As long as you’re able to accurately calculate the amount of home you can afford and take your time in selecting the right home, the Charleston market will do you plenty of favors.

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