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You may not feel it yet, but the housing market is shifting.
In July, the market shifted from a strong sellers’ advantage to more balanced neutral territory, according to Zillow’s latest market report.
So, what does this mean for you? Let’s dive in.
The Shift to a Neutral Market
For the first time this year—and the first July since 2019—the national housing market entered neutral territory. This means neither buyers nor sellers hold a distinct advantage, a significant change from the competitive sellers’ market we’ve seen over the past few years.
In July’s more balanced market, homes stayed on the market longer, with properties going under contract in an average of 18 days across the country. I know you’re probably thinking, “That’s a quick sale!”—and you’re right. But keep in mind, it’s almost a week longer than this time last year.
In addition, housing inventory has increased by nearly 25% compared to 2023, providing more options for buyers. Plus, 26% of homes on Zillow saw a price reduction in July—the highest percentage for any July since 2018.
Housing Trends in Charleston
Now that we’ve got an overview of the national housing market, let’s go local.
Here in Charleston, we saw the following trends in July 2024:
- Days on the market: On average, homes went under contract in 35 days in July. That’s a 29.6% increase compared to this time last year.
- Active listings: The number of homes for sale in July rose to 4,011, a 47.3% increase year over year. This equates to 2.8 months of supply based on current demand. This is well below the four to six months of supply that creates a balanced market, putting the Charleston market still solidly in the Seller's market territory.
- Average Sale Price: We saw the average sale price increase to $658,843. This is up 14.9% from one year ago.
Despite not seeing the huge increase in inventory that some other markets are, market conditions are gradually improving for buyers, especially in certain neighborhoods and areas of town. If you're curious about what is going on in your neighborhood, reach out to me here.
What Buyers Should Know
Buyers have an opportunity to explore the market with greater flexibility. In other words, you have a moment to catch your breath and make more informed decisions!
Keep in mind that the recent dip in mortgage rates, which began in early August, could bring more buyers back into the market. This may reignite competition in some markets.
Another important consideration for buyers is that, as of August 17, 2024, new industry mandates went into place. Going forward, buyer’s agents must enter into a written agreement with the buyer before giving them a tour of any properties. This change allows for more transparency surrounding buyer agent compensation—learn more about it here, or schedule a call with me here for more info!
What Sellers Should Know
Now let’s talk about sellers. There’s no need to panic—but it may be time to adjust expectations. It’s no longer 2022, when properties were selling in a matter of hours. Homes are taking a bit longer to sell, and with more inventory available, pricing your home correctly is critical.
As the market becomes more competitive for sellers, you can also consider other incentives, such as covering some of the closing costs or offering compensation for the buyer’s agent. Even though the industry's new rules mean that compensation can no longer be made on the MLS, you still have the option to offer it to buyer’s agents off the MLS.
Final Thoughts
Whether you are buying or selling, stay informed and be prepared to adapt. The housing market, along with mortgage rates, can cause fluctuations in buyer and seller activity. And don’t hesitate to reach out for personalized market reports or advice! You can schedule a time with me here.
Curious about your home's value and what's happening in your neighborhood?
Get in touch. National numbers are a great measuring stick to see how the overall economy and housing market are doing, but they don’t account for local home values and your personal financial situation.
