If you’re in or near Charleston, North Carolina and you are a real estate investor, Real Estate IRA owner or interested in becoming one, things are shaping up well.
Real Estate IRA investors should know that according to the Charleston Trident Association of Realtors (oops, excuse us… “REALTORS®“, the regional median home price in Charleston has increased by 5.3 percent over the last year. That’s strong without being overheated, and there’s every reason to think that that rate of growth is sustainable for the time being. Why? Inventory is getting much tighter. Indeed, it’s down 15 percent since last year. At last report, there were 5,390 homes actively listed for sale on the Charleston Trident Multiple Listing Service.
According to Michael Sally, president of the Charleston Trident Association of REALTORS®, inventory and affordability are going to be ongoing challenges for the city going forward.
That’s not great for the city’s renters. But it’s great for Real Estate IRA owners and other landlords in the city, because current economic trends and forecasts indicate that demand for rental residential and commercial real estate will remain strong in the region for the foreseeable future.
Says Mr. Sally: “We have major corporations and grand-scale economic investments taking place, but fewer and fewer options in terms of housing for the people who are going to take those jobs. It’s important to understand that when we say affordable housing, we aren’t just talking about government-subsidized housing—although that’s an important part of the picture—we are speaking to the larger need for housing availability for people at all levels of income. Prices are growing at a rapid pace and quickly pricing many existing Lowcountry residents out of the market they’ve grown up in and are trying to raise their families in.”
The Trident area encompasses three counties: Charleston, Dorchester and Berkeley. The priciest homes, based on median numbers, are in Charleston County itself, with a median home sales price of $308,000 in November of 2015. Prices have increased by 5 percent compared to year ago figures, and sales volume has increased by 11 percent. The North Mount Pleasant area was particularly hot, with 112 sales at a median sales price of $389,432.
Berkeley County is reporting a median home sale price of $208,465, with sales volume up strongly – by 20 percent, generating an average sales price increase of 8 percent compared to a year ago.
The Association remarked that the area bordered by Jedburg Road, Highway 17 and College Park was particularly active, with 78 homes selling at a median price of $237,190.
Dorchester County was the low-cost leader of the Trident region, with 172 homes selling at a median price of $192,975. Homes here increased in price by 7 percent, using median figures, on a volume increase of 12.5 percent. The most active area was Summerville/Ridgeville, where 70 homes were sold at a median price of $221,832.
Are you in Charleston? Or are you interested in learning more about how to leverage your IRA, 401k, SEP, SIMPLE IRA or other tax advantaged account to own real estate and other unconventional assets? American IRA, one of the leading administrators of Real Estate IRAs in the country, has offices right here in Charleston, as well as in Asheville, North Carolina.
For a free, no-obligation consultation, visit us online at www.americanira.com or call 866-7500-IRA (472). We look forward to serving you.