The market is decelerating, not depreciating
Yes, there’s a big difference. Nothing stays the same, especially in the real estate market. It is forever in flux. Intuitively we all know that, but often we forget and feel a sense of shock or concern when things actually do shift. Economically, things have slowed down over the past year. Interest rates hovered between 6-7% much of the last 12 months and talk of a looming recession has persisted for some time. But there are positive signs, especially if you live in (or want to live in) a private, master-planned community in the Charleston Lowcountry. Here’s why.
- Recession Resistant
Although no place is 100% recession-proof, private communities like Seabrook Island and Kiawah are much more resistant than other places. Because of their oceanfront location and variety of finished luxury amenities, they hold their value well. Even with Covid, they became even more desirable because they were private, and hence naturally self-isolating. When you factor in safety, a great location, and a rewarding lifestyle, you have a community or neighborhood built to stand the test of time.
- Rising Inventory
Though by no means abundant, there is more available inventory in Charleston’s master-planned communities this Spring than there was a year ago. Some of it is rebuild, some of it is homesites, and some of it is ready-to-build homes. Communities like Seabrook offer a Custom Home Design-Build program that enables buyers to choose from ready designed floor plans that they can customize. The great thing about these plans is they deliver custom quality with a faster turnaround time.
- Stronger Home Values
At the beginning of 2022, nationally speaking, sellers had the advantage. Rates were still in the 4-5% range and there was limited inventory so sellers could hike up the prices. After all, they held all the cards and there was little reason not to elevate the purchase price. And although those home values have come back down to earth—closer to where they were at pre-pandemic levels—that has NOT been the case in most coastal master-planned communities. In fact, values have been quite resilient because of built-in, recession-proof attributes: 1) premier location, 2) private and exclusive, 3) world-class amenities, 4) quality homes and facilities.
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NUMBERS TELL THE STORY
Seabrook Island Homes continue to hold value in 2022:
2022
Avg. price single-family home: $1,392,691
(Homeowners received 97.33% of their list price)
2021
Avg price for a single-family home: $964,680
(Homeowners received 97.39% of their list price)
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If you have questions or simply want to know more about selling your current property or buying/building a new Lowcountry home, please contact me at your convenience. I look forward to helping you realize your real estate dreams in the Charleston area.
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