By: Michelle Almeyda-Wiedemuth, Seabrook Island Real Estate Agent
In 2020, we saw a lot of changes take place in the real estate market, and as a result, 2021 will be a year of continued growth in many ways. As experts in Charleston real estate, the Seabrook Island Real Estate team is here to guide you through what to expect from the market this year and how to leverage market fluctuations to your advantage, whether you are a home buyer or seller.
Assessment of the Current Charleston Real Estate Market
A Look Back at 2020 Market Drivers
2020’s housing market saw changes that no one could have predicted, and the result has been a big move from many cities to smaller communities like Seabrook, South Carolina. Many were prompted to reassess their living situation at the height of the global pandemic for a number of reasons, including:
- Record-low interest rates
- Increasingly remote work environments
- The need for multifunctional living arrangements
- The desire for more space
According to the National Association of REALTORS®, the median price for single-family American homes grew 7.7% during the first quarter of 2020 to $274,600. The market is seeing home prices grow faster than before COVID-19 came to light. This is another result of those record-low mortgage rates, which have boosted buying power for new homeowners. When you combine low-interest rates with a lack of supply, home prices rise and sellers thrive. According to the U.S. News & World Report, What to Expect From the Housing Market in 2021, “The expected increase in home prices may entice some owners to sell. With home prices closing out 2020 around 7.6% above the average home price at the end of 2019, realtor.com predicts 2021 will yield an additional 5.7% increase in home prices by the end of the year.”
What to Expect from the Charleston Real Estate Market in 2021
2020’s surge of new buyers in the market created a challenge, as the increased demand for homes was met with a dwindling supply. So, how does this impact the overall market? As of right now, sellers in most places have the upper hand. The low housing inventory is one reason why those who list their homes will enjoy a strong seller’s market, characterized by bidding wars and an unusual number of offers. Properties of all types are experiencing their highest sales point in many years. Similarly, these properties are spending an extraordinarily short amount of time on the market, averaging just 57 days for the year so far in 2021. Potential homebuyers stand to gain as home prices are predicted to continue appreciating.
As the year progresses and more sellers enter the market, the landscape will begin to even out. Zillow anticipates 6.9 million home sales in 2021, which would be the biggest year in American real estate since 2005. Forbes predicts a strong seller’s market through the summer, settling into a more balanced fall and winter season to conclude the year. While 2020 may have been unpredictable, we have now seen enough of a stabilizing trend that a few predictions can be made confidently about 2021. We expect interest rates to remain low for the foreseeable future, with the cost of average home prices continuing to rise. Despite new construction, home inventory will remain lower than demand, which will likely keep home price appreciation skyrocketing. Homebuyers will continue to favor purchasing in non-metropolitan areas.
Seabrook Island Closed Sales Report for February 2021
We are only three months into 2021 so far, and we are already seeing these predicted trends come into play. In February, Seabrook Island Real Estate was responsible for 64% of the closed listings and 57% of the closed dollar volume. Excluding two properties, which had been on the market for 1,389 days and 994 days, respectively, the average time homes for sale Seabrook Island, SC, spent on the market was just 49 days.
*This report is updated as of 8:30 am March 1st, 2021. The sales of boat slips are not included in these figures.
How Does This Information Benefit You?
If you are a buyer, you’re likely to find a great mortgage rate right now. If home prices continue to increase as predicted, the cost of buying a new home will greatly increase. Reach out to a qualified Seabrook Island Real Estate agent, and we can help you find your perfect match with an attractive offer in this competitive market. If you are considering buying and have yet to discover Seabrook, South Carolina, we would love to tell you all about the unique, private community that we call home.
If you are a seller, the Charleston real estate market is giving you the upper hand right now. If you are ready to sell a home in 2021, chat with one of our Seabrook Island Real Estate agents! We’ll discuss how the current market will impact your options and help you get your property sold for the highest price possible in the timeframe that you want. Sellers are poised to have a great year, and if they have the right people in their corner, buyers can take advantage of the low interest rates while they’re still available.
Get in touch with a Seabrook Island Real Estate agent today, and we’ll help you get started! In the meantime, view Seabrook Island homes for sale and Seabrook Island condos for sale, as well as villas and townhomes, here.
After almost four years traveling and living abroad with her family, Seabrook Island Real Estate Agent Michelle Almeyda-Wiedemuth decided to make the Lowcountry her permanent residence. Michelle values long-term relationships and takes pride in her positive experiences with her clients, whom she affectionately refers to as her friends. In her spare time, Michelle can be found with her family, enjoying the beach, watching the dolphins, and her two boys swim, surf, fish, or play. She is a self-appointed foodie, and she loves live music, traveling, blogging, and collecting new experiences.
CONTACT MICHELLE
Email: mwiedemuth@seabrookislandrealestate.com
Office Phone: 843.768.2560
Cell Phone: 843.818.3628