Living and Working in Charleston SC

There is a problem with “average” and “median” home sale prices in tracking home sale prices.  What about the buyer  that qualifies for $250,000.  They see a few houses that meet their needs in the $230k range.  They could get what they need for $230,000, even what they originally “wanted”.  However, after a week of house hunting, they realize they can get more.  Even in 2006, my experience as a buyers agent was that just about everyone, (myself included) would really love to have a home that is $20,000-$30,000 outside of their price range.  Maybe it’s the bonus room.  Or it could be the granite counter tops and wood floors.  Perhaps it’s the larger lot with more privacey.  Whatever the case, the bottom line is, “average” and “median” home prices are incomplete indicators of home price trends. 

Which areas have been affected most?  Recently, the Charleston MLS added a new indicator which is very  helpful.  I have compiled the changes since 2006 so you can see which areas have been affected most.  As it turns out, beach communities have seen the most dramatic drops.  Here is the grid so you can see for yourself. 

 Mt Pleasant was also affected much more on a percentage basis, while John’s Island experienced the least impact.  Keep in mind that there are areas within areas.  James Island and West Ashley have water front properties that you might expect have been hit hard, now that supply and demand are working against them.  Demand is way off across the board, driving prices down. 

The North Area is very important because this is the most affordable area in Charleston.  It encompasses Summerville, Goose Creek, Hanahan, and North Charleston outside 526.  Many families moving to the area, and first time home buyers choose the North Area because of square foot prices being around $100.  Also, if you’re looking for more home for your  money, you pay less for location and can get more house for the same investment.

It’s not there yet, but it’s going in the right direction.  For those of you that don’t know, Berkeley and Dorchester County has always had the most affordable housing for middle income families, particularly those with school age children where quality of education is a primary concern.  Mt. Pleasant, West Ashley, and James Island on the other hand are more expensive primarily due to their proximity to downtown and to the beaches. 

Stay tuned for the raw numbers.  August stats aren’t completely in yet thanks to those procrastinating agents that haven’t changed their listings in the MLS to “Sold” status.