Are prices dropping in Charleston?
We have a house that is off Ashley phosphate for sale for $300, with a remodeled kitchen, new LVP flooring and whole home repainted. A comparable home sold in the neighborhood for 300 on 6/28. It's has been on the market for twenty days or so. We received our first offer at 260...
I know the market has changed in the last 45 days, but prices couldn't be dropping 13%. Curious what other folks have seen in the area?
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Quote from @Christopher Mancini:
We have a house that is off Ashley phosphate for sale for $300, with a remodeled kitchen, new LVP flooring and whole home repainted. A comparable home sold in the neighborhood for 300 on 6/28. It's has been on the market for twenty days or so. We received our first offer at 260...
I know the market has changed in the last 45 days, but prices couldn't be dropping 13%. Curious what other folks have seen in the area?
in my experience in charleston ( we built about 30 new builds downtown ) not in the burgs like you.. price points were 420k to 2.2 mil.. almost every offer we got started low and ended up if not full price within 1 or 2% of full price.. just seems liek that is soup de jour in that market.. IN Oregon were we are building everything comes in at list.. I did just have one come in 15k under list but we countered at full price and they came up.
@Christopher Mancini I don't necessarily see them dropping. More like stabilizing and returning to a traditional rate of appreciation. What I've noticed it price reductions back down to the realm of reality where sellers should have started. These days of 15 offers and escalation clauses are mostly done for, so listings need to be priced with thought. We can't list 10, 20, 30k higher than the market data suggests. Days on market is definitely extending, but my last few listings have eventually gotten strong offers. We have to be more patient waiting for the right buyer. I think these excessive price reductions will slow down soon. Much of it is just starting too high initially and/or panicking that DOM is more than a few days.
@Christopher Mancini I second what Troy says. The home that you're reference that sold on 6/28 was probably under contract mid-late May when there were several offers on homes in desirable locations like West Ashley. The inventory has also increased to about 2,700 units right now, when we were around 1,500-1,800 at that time in the Charleston area. This is still considered a sellers market, but more accurate and deliberate pricing needs to be adhered, instead of putting a number out there and expecting 5-10 offers in the first three days. In 2018 for West Ashley the average DOM was 63 and the average home sold for 96% of list price. I think we have to start getting back to that as the expectation. It doesn't mean things are bad, just more normal than the firestorm it's been for two years.
Quote from @Jeramiah J Dempsey:
@Christopher Mancini I second what Troy says. The home that you're reference that sold on 6/28 was probably under contract mid-late May when there were several offers on homes in desirable locations like West Ashley. The inventory has also increased to about 2,700 units right now, when we were around 1,500-1,800 at that time in the Charleston area. This is still considered a sellers market, but more accurate and deliberate pricing needs to be adhered, instead of putting a number out there and expecting 5-10 offers in the first three days. In 2018 for West Ashley the average DOM was 63 and the average home sold for 96% of list price. I think we have to start getting back to that as the expectation. It doesn't mean things are bad, just more normal than the firestorm it's been for two years.
Chris,
I tried to make some updates to my post to recognize your place on Ashley Phosphate and note West Ashley but I can't make an edit after a certain time. The ideas and concepts are still the same, and I can provide the specific data to your location if you'd like. Good luck!
I agree with above as well. It seems like prices are adjusting especially when you look at apps like Redfin or Zillow who show the increase or decrease little arrow next to the price.
Agreed with the above comments. For a while, agents and owners were not even considering the comps in a neighborhood. They were just throwing homes on at a really high price point and getting what they were asking or more because of the frenzy of buyers. Now that interest rates have gone up, the buying pool is smaller and comps/pricing right will matter.
With that being said, I don't think that we will ever see a significant price drop in homes here in Charleston. It has become such a desirable place to live and there's only on Charleston.
@as with most markets, the rate of appreciation is slowing but prices are not going down. Accoording to the Charleston Trident Association of Realtors, median prices were up 11.2% in July YOY off from 15.3% YTD.
