The I’On real estate market was certainly much more active in the first half of 2010 compared to the same period last year.  The result was an increase of 42% in the number of homes sold.  Unfortunately for I’On home sellers, this increase in sales activity did not translate into an increase in pricing.  On average, pricing was down 9% during the first half of the year compared to 2009:

2010:

• Homes Sold – 27 – up 42%
• Median Price – $737,500 – down 9%
• Selling Price Per Square Foot – $247 – down 9%

2009:

• Homes Sold – 19
• Median Price – $812,085
• Selling Price Per Square Foot – $270

Price Pressure on I’On Home Sales Likely to Continue

I believe the pressure on pricing is likely to continue for some time as there is still a significant imbalance between available inventory and the number of active buyers in the market (more on that later).  As the chart below reflects, at an average selling price per square foot of $247, I’On homes are now selling at 2004 price levels.

Key to I’On Home Price Stability – 6 Months of Available Inventory

As I have mentioned in previous posts, it is not likely that we will see any stabilization in prices until the number of months of inventory comes into balance.  Historically, a balanced market (one that favors neither the buyer or the seller) is approximately 6 months of available inventory.  Anything higher than 6 months of inventory typically has a negative impact on selling prices while anything less typically has a positive impact.  While certain price ranges are performing better than others in I’On, we still have a long way to go before achieving this “balance”.

I’On Home Sales Outperforming Mt. Pleasant Market Between $500K-$1M

As you can see from the above chart, the I’On real estate market segment for homes priced between $500K and $750K has the best chance of achieving this “balance” in the near term as there are only 9 months of available inventory for these homes (based on the sales rate of the last 12 months and the number of homes for sale).  Following closely with 13 months of available inventory are homes priced between $750K and $1M.  In fact, the I’On real estate market is performing better than the overall Mt. Pleasant real estate market in these two price segments.  I believe this reflects the continued popularity of I’On with most home buyers in this price range. The location, architecture, people, and beauty of I’On continues to attract!

I’On Homes For Sale Above $1M – Difficult Market Continues

Unfortunately, sales of I’On homes above $1M continue to be a struggle for sellers.  It is a simple matter of buyers in this price range not willing to re-enter the market.  As you can see from the chart above, there are 96 months of inventory in this price range!  32 of the 76 I’On homes currently on the market are priced above $1M.  This represents 42% of the I’On home inventory.  To put this in perspective, only 7% of the I’On home sales in 2010 were above $1M.

If I can answer any questions about this post or if you are thinking of buying or selling an I’On home, please contact me.  My team offers a full range of services and we will be happy to assist you in any way we can.

Where will you spend this Sunday with your family and friends?

Mount Pleasant, Isle of Palms, and Sullivans Island offer great locations to view 4th of July fireworks.  Here are some local East Cooper favorites:

Patriot’s Point 14th Annual 4th of July Blast!

Old Village Pitt Street Bridge

Isle of Palms and Sullivans Island

Daniel Island 4th of July Celebrations (July 2 – July 3)

Every day, people ask me if the Mt. Pleasant real estate market has turned around.  Well, the answer is yes AND no.  Let me explain……

Mt. Pleasant Single Family Home Sales Up 41% in 2010…

Overall, the Mt. Pleasant real estate market continued to surge in the last 30 days.  Through May 31st, the number of Mt. Pleasant homes sold is up 41% from the first five months of 2009. While sales are up significantly, there is still some pressure on pricing as reflected in the median price and selling price per square foot shown below:

2010:

• Single Family Homes Sold – 403
• Median Sales Price – $336,000
• Selling Price Per Square Foot – $156

2009:

• Single Family Homes Sold – 285
• Median Sales Price – $368,000
• Selling Price Per Square Foot – $166

A Very Active Mt. Pleasant Real Estate Market Below $750,000

While activity is up significantly overall in Mt. Pleasant this year, the growth is not being experienced in all price ranges.  The concentration of the growth is in homes selling below $750,000 with the most significant growth coming from homes priced below $300,000.   With a year-over-year growth rate of 63%, homes priced below $300,000 now represent approximately 43% of the overall Mt. Pleasant real estate sales activity.  This is a significant change from the peak of the market in 2006 and 2007 when sales in this price segment accounted for only 22% of the overall Mt. Pleasant market.

Mt. Pleasant Home Sales Above $750,000 Remain Flat

On the other end of the spectrum, homes priced above $750,000 are flat in 2010 when compared to last year.  The 28 homes sold above $750,000 represent less than 3% of the Mt. Pleasant real estate market.  During 2006 and 2007, this price segment represented between 12% to 15% of all Mt. Pleasant home sales.

It’s Simply a Case of “Supply and Demand”

As with any real estate market, this one is all about supply and demand.  There is simply more inventory available in the more expensive segments of the market than there are buyers.  Until more Mt. Pleasant buyers “show up” to the table in these price ranges, this will remain the case and pricing will continue to feel pressure.  However, the good news is that we are seeing some improvement in available months of inventory in all price segments except homes priced above $1M.

Mt. Pleasant Homes Priced Below $300,000 Now in a “Balanced” Market…

Because of the significant growth in Mt. Pleasant home sales below $300,000 this year, I consider this segment of the market “balanced”.  As I’ve mentioned in previous posts, a “balanced” market is one that has approximately 6 months of available inventory.  At this level, neither the buyer or seller has a significant advantage in price negotiations.  As the available months falls below 6 months, pricing will start to increase and the market will shift towards a “Sellers Market”.  As you can see from the chart, it will likely be some time before we see a “balanced” market in the higher price ranges, particularly for homes priced above $1M.

So, has the market turned?  Suffice it to say that it is improving.  Hopefully for sellers, that trend will continue.  For buyers, now might be a great time to start looking for that new home!

Please feel free to comment on this post or contact me if you have any questions.  Also, if you are thinking of buying or selling a Mt. Pleasant home, please contact me to learn more about the services offered by The Chuck Avera Real Estate Team.

Since my last report on April 19th, there have been 3 additional I’On home sales:

• 70 Sanibel Street – $475,000
• 37 Sowell Street – $515,000
• 197 North Shelmore – $1,070,000

The home at 197 North Shelmore was the first I’On home to sell above $1M in 2010.  Prior to this sale, the last home to sell for a price above $1M in I’On was in November, 2009.

Through May 19th, the number of I’On homes sold is still significantly above the same period last year, though the pace has slowed somewhat in the last 30 days:

2010 I’On Home Sales Through 5/19/2010:

• 17 Homes Sold
• Average Selling Price Per Square Foot – $260
• Median Sold Price – $637,500

2009 I’On Home Sales Through 5/19/2009:

• 10 Homes Sold
• Average Selling Price Per Square Foot – $260
• Median Sold Price – $887,500

I’On Home Buyers Opting for Homes in Lower Price Brackets

While the average selling price per square foot for I’On homes sold in 2010 has remained steady, the median selling price for I’On homes is down 39% from 2009. This is reflective of buyers opting to purchase proportionately more homes in lower price brackets than they were doing in previous years.  In the last 9 months, 90% of all I’On homes have sold below $1M, yet currently 47% of all I’On homes on the market are priced above $1M.  Clearly, the market for I’On homes above $1M is very sluggish.  There are very few buyers in this price range and I don’t see that changing significantly in the near term.

Inventory of I’On Homes For Sale Slightly Higher in Last 30 Days

Inventory levels have risen slightly since my last report.  Currently, there are 72 homes for sale in I’On.  The chart below reflects current I’On inventory by price range compared to the number of I’On homes sold during the last 9 months.  This further reflects the disappointing results in homes priced above $1M.

I’On Home Buyers Still in Control

The “months of inventory” by price range still reflects a sold buyer’s market.  However, for homes priced below $500K, we are approaching a “balanced market” as there is only 7 months of inventory available in this price range.  Unfortunately for buyers, the supply is rather limited in that price range so there is not going to be an overall jump in sales activity unless more inventory comes on the market in that bracket.

• Below $500K – 7 months of available inventory
• $500K to $750K – 13 months of available inventory
• $750K to $1M – 17 months of available inventory
• Above $1M – 102 months of available inventory

Distressed I’On Home Sales Becoming More Common

I get asked a lot about short sales and bank-owned properties in I’On and what is happening with them.  While they are certainly not yet the norm, the number of homes being contracted for that are in a distressed situation is certainly rising.  For example, of the 15 homes currently under contract in I’On, 7 of them are either potential short sales or bank-owned.  When these homes do close, the sales prices are likely to have a negative impact on the average selling price per square foot.  For example, the average selling price per square foot in I’On is currently $260 but the asking price per square foot for the 7 distressed homes that are under contract is $222.

If I can answer any questions about this post or if you are thinking of buying or selling an I’On home, please contact me.  My team offers a full range of services and we will be happy to assist you in any way we can.

Through April 19th, real estate activity for Mt. Pleasant single family homes is up significantly from the same period in 2009.  While pricing has dipped slightly, the number of homes sold is up 20% in 2010.  This is welcome good news for sellers in our market as we move into the busy spring season.

2010:

• Single family homes sold – 231
• Median Sales Price – $359,000
• Selling Price Per Square Foot – $160.23

2009:

• Single family homes sold – 193
• Median Sales Price – $370,000
• Selling Price Per Square Foot – $163.10

Mt. Pleasant Home Sales Below $300K Approaching a “Balanced” Market

While the Mt. Pleasant real estate market has seen an overall increase in activity, there are still certain price ranges that are performing better than others.  For example, based on the last 9 months of sales history, there are only 7 months of available inventory for homes priced below $300,000.  This is very close to representing a “balanced” market.  A “balanced” market is approximately 6 months of available inventory.  Anything above 6 months represents a “buyers market” and anything below represents a “sellers market”.

As you move into the more expensive homes for sale in Mt. Pleasant, the buyer still has a significant advantage as inventory remains rather high.  As you can see from the chart below, months of available inventory escalates dramatically for homes priced above $750,000 and again for homes above $1M in asking price.

Price Pressure Likely to Continue Through 2010 in Mt. Pleasant

Achieving a “balanced” market in the higher price ranges will not be easy as there is a lot of inventory to absorb.  Therefore, I believe there will be continued pressure on pricing as we move through 2010 and into 2011.  Because of the stiff competition for buyers in most price ranges, sellers will have to “price right” and have their homes in pristine condition to have a good chance of securing an acceptable contract.

If you have any questions about this post or if you would like additional information about real estate services offered by The Chuck Avera Team, please contact me.  I will be happy to help in any way I can.

There is some good news in the I’On real estate market this year.  Through April 19th, the number of homes sold is up sharply from the same period in 2009:

2010 I’On Home Sales – Through 4/19/10

• 14 Homes Sold
• Average Selling Price Per Square Foot – $255.82
• Median Sold Price – $686,250

2009 I’On Home Sales – Through 4/19/09

• 6 Homes Sold
• Average Selling Price Per Square Foot – $258.73
• Median Sold Price – $1,015,000

This is obviously very good news as we head into the heart of the spring selling season. There are a lot more buyers in the market and they are making offers on I’On homes.  This is a welcome change from this time last year when the I’On real estate activity was very slow.

I’On Home Sales Above $1M Continue to be Very Slow

While activity has certainly picked up, there are still reasons to be cautious.  While selling price per square foot is relatively unchanged since last year, the median sold price is down significantly.  This is a direct result of I’On home buyers focusing on homes below $1M. There have been no I’On homes sold over $1M this year and only two in the last nine months, yet roughly 50% of the available inventory in I’On is priced above this number. The chart below shows the number of homes currently on the market along with the number of homes sold in the last 9 months by price range.

It is Still a Buyer’s Market in I’On – In all Price Ranges

As I have mentioned in previous posts, a “balanced” real estate market is generally defined as 6 months of available inventory.  Anything above that represents a buyer’s market and anything below represents a seller’s market.  Based the last 9 months of sales activity, the I’On real estate market clearly favors buyers in all categories:

• Below $500K – 9 months
• $500K to $750K – 13 months
• $750K to $1M – 11 months
• Over $1M – 144 months

If we continue to see an increase in activity through the spring, the months of available inventory should fall and we should move closer to a “balanced” market in a few of the price ranges.  However, it will take quite some time for the $1M+ market to stabilize.  There is just too much inventory to be absorbed in this price range.

If I can answer any questions about this post or if you are thinking of buying or selling an I’On home, please contact me.  My team offers a full range of services and we will be happy to assist you in any way we can.

Finally some good news!  Through the first two months of 2010, Mt. Pleasant homes sold at a faster pace than the same period in 2009.  A total of 147 homes sold in Mt. Pleasant in January and February, up from 115 sales in 2009.  Single family home sales are up 31% while sales of condos are up 19%. Clearly, there are more buyers are in the market right now than we had last year.  This is a very positive sign as we head into the traditional “spring selling season”.

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It seems that everywhere I go, people are asking me if the I’On real estate market has “turned around”.  Well, if you measure a “turnaround” strictly based on increased showing activity and number of sales, we are starting to see some progress.  But I believe most people really want to know when there is going to be a “turnaround” in prices.  That is going to take some time.  In this post, I will try to put this in perspective for you.

I’On Home Sales Are Up in 2010

Showing activity has increased significantly in I’On since the first of the year.  As a result, 7 I’On homes went under contract during January and February.  This is a big improvement over 2009 when only two homes went under contract during the same period. In addition, 6 I’On homes closed during January and February, compared to only 2 during the same period last year.  Below is a list of these 6 I’On homes with their sales prices:

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Although the Belle Hall real estate market continued to feel the effects of the economy, it did fare better than many other Mount Pleasant neighborhoods in 2009.

Belle Hall Home Sales Down Again in 2009

There were 54 homes sold in all phases of Belle Hall last year.  This is down slightly from the 58 homes sold in 2008, but significantly off of the 2005 peak when 87 homes sold in the neighborhood.  There continued to be pressure on pricing, particularly in the higher price ranges.  The average selling price per square foot in 2009 was $177, down from $181 in 2008.  This is down 13% from the peak in 2006 when the price per square foot was $203.

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Through most of 2009, sales of condos in the Mount Pleasant real estate market were down significantly.  However, the 4th quarter of the year produced 97 condo sales, which is the highest number of sales since the 3rd quarter of 2008.  It’s a little early to suggest that this signifies a major shift in the market, but it is a flicker of hope for sellers that have been trying to sell their condos.  There is still a long way to go before we see a “balanced” market, but there are finally some signs of life for the condo market in Mt. Pleasant.

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