Christina Wilson Your Charleston Realtor

Market Update: June 2024: Let's Get Weird

Charmless little housing update: market’s still weird. And this summer? It’s got the makings of more of the same. One minute we’re describing the overall sentiment as ‘a bit slumpy’ and asking “where are all the buyers hiding?” and the next we’re receiving eight offers on our new James Island listing. The top two: all cash, no appraisal contingency, no repair requests. See? Weird.

Showings are down 22% *per listing* from this time last year, and we have two theories: 1) demand is down in general which should not come as a shock because many buyers are unable to enter the market due to still-high mortgage rates and overall affordability straining household finances, or 2) that the increase in inventory is starting to dilute buyer activity (again, per listing); buyers having more options is a good thing.

Despite the housing market starting to slow in late 2022, a year and a half later there is still no evidence that a post-pandemic “housing recession” will reverse some of the outsized price gains in homes. A strange thing happened on the way to the anticipated housing market crash: home values started rising again. We are up 5.7% in median sales price over this time last year. It may be our postcode envy but it may also be that we are still short on supply. Although we’ve seen a jump in new listings this year, housing inventory in the U.S. is still 34% below pre-pandemic levels.

How long will this standstill of irreconcilable differences between inflation and housing affordability go on? The Fed held rates steady at its June meeting and now anticipates just one rate cut this year. That dang FED is always tarnishing the silver. Its next meeting is July 30-31.

Cheers,
Christina

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