Is The Charleston Market Headed For A Crash?

Have you heard people say the market is crashing just like it did in 2008, or that home values are going to dip below 50%? In this video, I’m going to tell you if the Charleston market is headed for a crash in 2023. We’ll look at the data and assess the numbers so you can best prepare for the future.

Market Worries

If you've been on social media, you've likely seen a post indicating the market is heading for a crash. As interest rates rise, buyers and investors have many questions about what's going on in the market.

Will we be headed to a crash? Will homes retain their values? Before I answer that, we have to take a look back.

Supply And Demand

As a result of the pandemic in 2020 and 2021, we saw record sales in our area. What fueled that high demand was very low inventory. We saw the demand as many buyers moved into the market, choosing not to stay in the areas that they were in before the pandemic.

That resulted in us having an unprecedentedly low inventory. At one point, our inventory was so low, we had less than a month's worth of inventory. So what does that mean? If you put a house on the market, within a month, it was gone.

We all know how economics works. High demand and low supply equal higher prices. Buyers at this time were willing to go above and beyond to get into their homes, which cause home values to increase. So what's happening now?

Growth In Charleston

Experts are forecasting home appreciation in 2023—but just at a slower pace. Basically, what we're seeing is that the market is normalizing. It's cooling off a bit compared to 2020 and 2021, but it's still going to be a high-demand market.

What's driving that demand is job growth. As we continue to see job growth, we're going to continue to see a demand for housing in the Charleston area—so much so that the National Association of Realtors has said that the Charleston market is one of the top 10 hottest markets in 2023.

So don't hold your breath on the Charleston market crashing anytime soon. While we will see a decrease in sales from what we saw in 2020 and 2021, demand will continue to be high.

I’m Here To Help

Buyers and sellers looking to function in this market will need to tune out social media and connect with real estate professionals to understand how to function in this market. If you have any questions, we here at the Chatman Group would be happy to help you navigate real estate. Feel free to reach out and we’ll be glad to connect.

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