On January 17, Charleston Trident Association of Realtors (CTAR) hosted its annual Residential Market Update presneted Dr. Joey Von Nessen, Economist with the Moore School of Business at University of South Carolina (USC).
The theme of 2024 is readjustment. The economy is shifting towards a more stable economy after a period of demand outpacing supply since 2020. It’s a slow process, reflecting the imbalances built up over several years. The primary factors contributing to this imbalance are a swift recovery in the labor market and robust employment growth following the 2020 recession. Additionally, the injection of $6 trillion in stimulus, resulting in high demand levels.
Although slower growth is expected for the state in 2024, South Carolina’s economy remains relatively healthy and continues to benefit from steady consumer spending, wage growth, and a strong labor market. The bulk of the housing market’s readjustment period is likely behind us. Sales activity will likely stabilize in 2024 showing either marginal growth or remaining relatively flat. High inflation remains the single biggest short-run economic threat. If inflation stays around 3%, the Federal Reserve is likely to keep interest rates higher for longer, influencing the housing demand.