Daniel Island Market Conditions
- Daniel Island is a unique “micro market” impacted by many local factors including lifestyle allure, dwindling opportunity to build, country club factors (e.g. membership availability), schools, and unique resident profile
- Low Inventory following fewer new listings and strong demand has led to increased median sales prices for the year 2023
- New Listings -38.2% and closed sales -51% YTD 2023
- Lack of Inventory drives Median Sales Prices +11.5% YTD 2023
- Average Price Daniel Island Park in June 2023 = $2.92M - representing and average sales price of $604 per SqFt. Average Price on Southside = $1.4M – representing $438 per sqft.
- New Construction driving increases on Parkside with sales of $794 per SqFt ($207 more than previously owned homes). New construction on DI total generates +$146 per sqft.
- The market is more in equilibrium between buyers and sellers than previous 3 years. Days on Market increasing. Contractual language regarding contingencies returning to historical norms
- Long term demand to move to DI remains significant. Charleston population expected to grow +25% in next 10 years.
Average Sales Price on Daniel Island Park YTD 2023 is $2.9M which represents a +23% increase from 2022. These are historic highs.
The 16% dip in average sales price growth shown on DI Smythe Park is based on differences in inventory from 2022-2023. Higher price growth between DI Park and Smythe dictated by higher amount of new inventory on Parkside which has generated +15% higher prices than comparable non-new homes.
Stark contrast between growth of DI Park and other areas (especially MLS wide) once again highlights that key-driver of sales price is “lifestyle.” This dictates our marketing strategy.
Average sales prices have increased 2022-2023 YTD due to an extreme lack of inventory in the market.
Homes for Sale down significantly -currently there are only 6 properties for sale in DI Park ands 18 on the Southside of DI.
Experts are forecasting that closed sales will continue to remain close to historic lows through the end of the Spring Market and through the Fall
Homes for Sale and Inventory held low by owners’ desire to hold old low interest mortgages instead of trading them for new mortgages with higher rates (i.e. the “Golden Handcuffs”)
Inventory expected to remain flat – or possibly decrease in Fall 2023 as the Spring sales cycle concludes.
Months Supply of Housing Inventory was high in 2020 as sellers took advantage of historic sellers market – not to mention pent-up sales halted from COVID lockdowns
Current Housing Inventory in all of Charleston is low at 1.7 months. DI Park has extremely low inventory levels of 0.6 months. Normal inventory levels = 4 to 6 months
Inventory held low by owners’ desire to hold old low interest mortgages instead of trading them for new mortgages with higher rates.
Inventory expected to remain flat – or possibly decrease in Fall 2023 as the Spring sales cycle concludes.
Key Take-Aways
- Historically low Housing Inventory and strong demand have led to continued average sales price increases in 2023
- Homes for Sale and Inventory have been held low by owners’ desire to hold their current low interest mortgages instead of trading them for new mortgages with higher rates (i.e. the “Golden Handcuffs”)
- If you are considering selling now is a GREAT time to do so!!
- Marketing is key to get the lifestyle-focused buyer in front of the property and maximizing the sales price.
- The difference between new home sales and previously owned homes points to value that can be generated by (1) new builds and (2) strategic updates to homes built 2005-2020.
