2020 was a wild year in many respects. As we move into the new year filled with hope the housing market remains strong. 2020 left us with a pandemic, an election and record low mortgage rates. Charleston in general saw a record number of people migrating from all over the country in hopes to avoid lockdowns. This along with the fact vaccines are just becoming available let to historically low inventory. In short we are in a heavy sellers market and that trend might continue through the coming year. As vaccines become more available likely more people will be open to putting their house on the market. Many sellers don't want people in their home right now and have nowhere to go.
We also know that Charleston is a service based town and many have been deeply affected by the pandemic. Many workers in food and beverage find themselves without jobs and other companies are moving towards eliminating jobs in general that can be outsourced.
In the short term there will be strong demand for more rentals, just when the supply has actually gone down. Unemployed renters will expand the lower end of the renter market this year but have financial difficulties. This produces more risk for investors in rental properties on the lower end.
Interest rates hope to stay low but could see a slight increase in the coming months. Inventory will remain low until we find ourselves completely in the clear, which is a huge unknown at this point. It's important for both buyers and sellers to understand the hurdles we are currently facing in the market. We're here to lend our experience and knowledge. If you have any questions about the current market please reach out anytime!