Last week Charleston set a new MLS record for properties going under contract with 542 properties in one week! This time of year, we typically see a seasonal slow down as families get ready for the start of school. The chart below shows the 2019 dip in home sales (blue line), and you can compare this year’s orange line. Also note the line showing the start of the COVID 19 concern when Charleston home sales dipped before going back up.
Last week saw a 77% increase in sales over the same week last year (to put this into perspective, this is the largest year over year increase we’ve seen in a single week). Quite simply, Charleston is seeing its best housing market on record despite COVID 19 as buyers are relocating from larger cities, having more flexibility to work from home, needing more space (moving up to a larger home within Charleston), or purchasing a first home. At some point, the lack of inventory will begin to suppress sales since there are more properties under contract than available to purchase.
Advice for Home Buyers in Charleston’s Current Sellers’ Market
Buyers from other markets around the country are often surprised to learn how the Charleston real estate market has boomed during the coronavirus year of 2020, and it can be harder to house hunt from afar in a market where listings often sell within just a few days of getting listed for full price. Hopefully this info will help.
Right now in general we’re seeing some buyers get discouraged due to multiple offer situations and also how fast paced our market has become. It’s hard to compete against cash buyers who can close quickly, even if a lender verified buyer is paying full price, but there are ways to prepare yourself and increase your chances of winning the offer:
- In today's market you must have a preapproval letter in hand: No sellers are willing to take their house off the market for a buyer who can’t provide a preapproval letter with their initial offer. More than ever, it’s important to get preapproved before seeing homes rather than waiting to find the right one first. Getting your offer in early gives a huge advantage.
- Need to sell before buying? So many buyers are in this same boat! Talk with us about strategy. Most sellers aren't willing to take a contingency for a buyer to sell their house (ie, the buyer's house is not under contract yet), but most sellers will take a contingency that allows you to close on your current home (and many builders now are not taking this contingency either way). However, the 2020 market has taught us Realtors to get creative and to negotiate more than ever! Options include paying the sellers’ mortgage after 60 days, doing a rent back, finding a furnished vacation rental, having your photos done and MLS report drafted while we wait on the right listing, or refinancing (this is where your lender can help). We’ve had a lot of success this year in these tricky domino effect situations, so let’s talk!
- Just waiting on the perfect listing? With historically fewer listings to choose from, many buyers are having to wait longer to find just the right house. We Realtors often hear about new listings before they hit the market. The same is true for new construction. Builders often don’t list all of their homes on the MLS, so we’re happy to do some digging for you with your specific needs and wants.