Throughout the country, the number of existing home sales increased dramatically when comparing May to the previous month. The increase in inventory has also helped to spur a moderate amount of growth in home prices, a trend that has been particularly noticeable with Charleston County real estate.
Overall, the National Association of Realtors reports that the South is doing quite well when compared to other regions of the United States. While median price of a home in the South was $184,800 in May, this represents a 4.4 increase when compared to May of 2013. Meanwhile, the Northeast went down by 0.9 percent and the Midwest went up by 4.0 percent. With an increase in home prices of 8.4 percent, the West was the only region to perform better. Nationally, median existing-home prices rose by 5.1 percent.
In terms of existing home sales, the South also outperformed much of the rest of the country with a 5.7 percent increase when compared to the previous month. The West fell well below these figures with an increase of just 0.9 percent, while the Northeast experienced 3.3 percent growth. The Midwest outperformed all of the regions with an 8.7 percent increase. Nationally speaking, existing-home sales increased by 4.9 percent, putting the South well ahead of the average.
While an increase in inventory helps to slow price growth, thereby making homes more affordable, the number of homes available are still below what is necessary to achieve a balanced market. Therefore, new homes will still need to be constructed in order to keep prices at healthy levels. According to a report released in the National Association of Realtors in May, however, new home construction continues to be at a much slower pace than necessary throughout much of the country.