Living and Working in Charleston SC

For the first time since the second half of 2006, we are seeing unit sales exceeding the previous year.  The Charleston MLS is showing 734 sales in September of 2009 vs 32 in September of 2008.  Yes, I know it’s not much.  But it’s better than going down and down and down.  Also, the average price per square foot edged up ever so slightly from $124 in August to $129.  I’m looking for at least a 3 month trend before I conclude the turnaround is here to stay, but again, at least there is an initial sign.  It might be another year before we put 3 months together, but at least it’s a start.  We have to allow for the effect of the $8,000 first time home buyer credits which we did not have this time last year.  Whatever, the case, I’ll take whatever good news I can get!

There is a problem with “average” and “median” home sale prices in tracking home sale prices.  What about the buyer  that qualifies for $250,000.  They see a few houses that meet their needs in the $230k range.  They could get what they need for $230,000, even what they originally “wanted”.  However, after a week of house hunting, they realize they can get more.  Even in 2006, my experience as a buyers agent was that just about everyone, (myself included) would really love to have a home that is $20,000-$30,000 outside of their price range.  Maybe it’s the bonus room.  Or it could be the granite counter tops and wood floors.  Perhaps it’s the larger lot with more privacey.  Whatever the case, the bottom line is, “average” and “median” home prices are incomplete indicators of home price trends. 

Which areas have been affected most?  Recently, the Charleston MLS added a new indicator which is very  helpful.  I have compiled the changes since 2006 so you can see which areas have been affected most.  As it turns out, beach communities have seen the most dramatic drops.  Here is the grid so you can see for yourself. 

 Mt Pleasant was also affected much more on a percentage basis, while John’s Island experienced the least impact.  Keep in mind that there are areas within areas.  James Island and West Ashley have water front properties that you might expect have been hit hard, now that supply and demand are working against them.  Demand is way off across the board, driving prices down. 

The North Area is very important because this is the most affordable area in Charleston.  It encompasses Summerville, Goose Creek, Hanahan, and North Charleston outside 526.  Many families moving to the area, and first time home buyers choose the North Area because of square foot prices being around $100.  Also, if you’re looking for more home for your  money, you pay less for location and can get more house for the same investment.

It’s not there yet, but it’s going in the right direction.  For those of you that don’t know, Berkeley and Dorchester County has always had the most affordable housing for middle income families, particularly those with school age children where quality of education is a primary concern.  Mt. Pleasant, West Ashley, and James Island on the other hand are more expensive primarily due to their proximity to downtown and to the beaches. 

Stay tuned for the raw numbers.  August stats aren’t completely in yet thanks to those procrastinating agents that haven’t changed their listings in the MLS to “Sold” status.

Average price per square foot has been holding steady for four months.  Inventory is creeping downward ever so slowly.  Months of inventory is clearly down.  Sales vs last year are down, but not at as drastic a rate as 2008 vs 2007.  We may have seen the worst of it, but this is only speculation. 

What will it look like when we’ve turned the corner in Charleston?  I’d like to see average price per square foot continue to square off if not rise by a couple of bucks.  The months of inventory and absolute numbers are still crazy high which is NOT good for the future of home prices.  It would be good to see them start dropping, but this probably isn’t going to start happenning until we see some of the other economic indicators start improving, like retail sales, and employment.  

Sellers, homes are selling but only if the home is priced right out of the gate.  The buyer doesn’t care how much you owe or how much you’ve invested.  Keep in mind, hopefully when you go to buy, you’ll be able to take advantage of the buyers market once you’ve sold your home.  Time is on the buyer’s side and they’re looking for bargains.  Make sure your home is maintained, decluttered and well staged.

I”ve always report the real numbers here at allthingscharleston and my message all along has been, “maybe this is a good time to buy; maybe it’s not.  It depends on your situation.”  I’m less optimistic than my fellow real estate agents and besides, any message that says, “Now is a great time to buy.” is bound to be perceived as self-serving anyway.  What do you expect the real estate association to say?  “The market is crap and if you’re smart, you’d wait it out at least another six months?”  In fact, that probably is the best advice for most of you; however, if you’re moving to Charleston or are ready to move UP in price, this can be a good time.  Also, there is a lot of good news about Charleston on the natoinal scene.  It really is a great place to live depending on what you’re into.  If you want amusement parks and a world class nightlife club scene, Charleston probably isn’t your place.  But if you like good food, fun and friendliness, Charleston is awesome.  The weather is great if you know how to take care of yourself in the heat.  (like stay inside if you’re from Minnesota) 

If you’re interested in learning more about Charleston, this is a great link, particularly if you are comparing cities.

http://www.pressomatic.com/ctar/upload/Charleston_Real_Estate_GoodNewsAboutCharlestonMarket.pdf

Let me know your thoughts.

There’s a new leading indicator in the MLS stats that is an equalizer.  It’s the average price per square foot.  It was tricky trying to base home prices based on the average or median price because, what if most buyers are spending their bugdet and getting more home for their dollar?  In May, the average price per square foot was $128 vs $159 May last year, and $130 in April.

You can qualify for 30% toward materials up to $1,500 for roofing, siding, heat pumps, air conditioning and so on.  http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c3.  It just takes a little research, an estimate and the right forms and you’re all set.  It’s best to consult with your tax professional before making any final purchase decisions.  http://www.irs.gov/pub/irs-pdf/f5695.pdf is the link to the form you will need.  There you are.  You have the two references you need so go ahead and call your contractor.  Oh, yes there is a catch.  You’ll have to wait until tax time next year before your credit materializes.  I wouldn’t wait since you never know how long we’re going to keep on funding programs out of any empty bucket.  Hope this helps folks.

March unit sales were 33% off of last year.  Inventory levels and days on market are still ridiculously high and unchanging in any significant way.

For you Charlestonians, there was a hale storm around March 1, 2009.  This storm did some damage to our roof, which we would not have known about it, had it not been for Progressive Roofing.  We were sceptical when we received the card in the mail, but then they followed up by knocking on our door.  They had all the right answers to all of my wife’s questions.  It all sounded too good to be true of course, but they assured us this was the real deal.  Well….we have received the checks as they said we would.  We have to pay the deductible as well as a little extra because we wanted architectural shingles.  We bought our home four years ago, and one of the things that helped us was that the last roof installation they didn’t tear off the old shingles.  This meant that it was not possible to repair the roof. 

Let us know if you have an older roof and we’ll help put you in touch with our new friends.  This IS the real deal.