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Folly Beach Long-term rental

Key Takeaways

To put that increase in context, the compound annual growth rate (CAGR) of property value in the USA since 2012 has been 6.49% per year. However, if we pull back that time-frame to 2008, that annual growth rate falls to 3.97%.
Even after a correction, Folly Beach real estate is still exhibiting incredible returns.

2020-2022 Witnessed a Historically High, Bubble-Driven Market

In August 2020 Median Sales Price was $707,500.
In August 2021 Median Sales Price rose to $1,135,000
In August 2022 Median Sales Price rose to $1,950,000

After extensive research on this topic as well as consultation with unbiased off-island Charleston realtors, it is clear that comparing today’s Folly Beach real estate prices against a historically high and bubble driven market is a misleading argument. When you evaluate a more realistic investment time-frame, Folly Beach real estate exhibits incredible returns. Simply put, comparing against an outlier is not a good way to evaluate an any investment.

The Data You Choose Affects the Resulting Argument

Every Market Has Been Impacted

  • The median sale price of a home in Folly Beach was $950K last month, down 18.8% since last year.
  • For Comparison:
    – Sullivan’s Island is down 5% TYD
    If you compare August 2022 to August 2023, Kiawah Median Sales Price is down 35.6% and Sullivan’s Island Median Sales Price is down 69.2%

The following are good examples of common real estate metrics that can be used to discuss the Folly Beach real estate market. This data was taken directly from MLS and demonstrates why it’s important to look beneath the numbers being presented.

Median Price Per Square Foot

While the median sale price of a home in Folly Beach is down, the median sale price per square foot in Folly Beach is $554, up 12.1% since last year. In fact, Folly Beach is one of two area markets showing an increase in the Price for Square Foot in 2023:

  • Folly Beach + 12.1%
  • Isle of Palms +23.1%
  • Sullivan’s Island -8.4%
  • Kiawah -4.3%
source: Charleston MLS

Folly Beach: Median Percent of Original Price

In simple terms, Median Percent of Original Price gives you a general idea of whether houses in a certain area are selling for more, less, or exactly their asking price.

Wow, that graph looks scary. But do some research behind the graph and you will see that the last data point was heavily influenced by 1 of 3 closed sales in August.  A home located at 402 E Indian Ave was listed for $3,950,000 and sold for $2,995,000.  

For a bigger picture view of this transaction,here’s it’s price history:

  • 2011 for $940,000 
  • 2013 for $1,080,000
  • 2023 for $2,995,000
  • Rate of Return For Last Transaction: 177.41%

Asking Price is Not a Valuation

According to data taken from James Schiller & Associates, a team of highly respected agents serving Charleston SC, Folly Beach SC Boat Slip listings have an average sales price of $61,850. In this case, $85k seems to be a bit high given that the Highest Listing Price stated for a boat slip was $72,500. The high asking price did however significantly affect the shape of the graph below as the price drop exaggerated the Median Percent of Original Price considerably.

Again, this sale shows why it is important to look behind the numbers being presented.

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