Around the summer of last year, the Charleston real estate market (like many others around the country) experienced a drop in home prices. Fluctuations are natural in real estate markets and anything else that is economically based. Most of us are familiar with the charts that have a wavy line that steadily rises with a pattern of high points (called crests) followed by low points (called troughs). The Charleston real estate market had experienced such a rapid increase of home prices in the eight years before that a drop in the market was predicted months before it started to happen.
Most real estate experts agree that this is the lowest point – the trough – of real estate prices. Some experts even believe that prices are starting to go up again in many areas. The good news for home buyers, though, is that real estate prices now are some of the lowest we’ve seen in years. And, they probably won’t get much lower.
Many of our clients ask us about the effect the real estate market will have on them selling their homes and buying up (buying a larger or more expensive house). Although it will be harder to sell their homes with the current market, it’s an ideal time to move up. Since prices are so low right now, sellers won’t get as much money as they would have gotten a year ago for their current homes. But, when these sellers go to buy another home, they will pay the lowest amount possible for it. This is especially beneficial for people moving up where that percentage of price reduction means saving more money on the more expensive house.
There are still a lot of homes on the real estate market to sell. Some Charleston areas have months’ worth of inventory in a market that is slowly becoming less flooded. Between having a lot of homes to choose from and taking advantage of the low prices, the next couple of months are going to be a good time to buy real estate in Charleston.