What is really happening in the I’On real estate market? Yes, there are lots of stats to quote and goodness knows, I like to quote them! But in this post, I want to give you my thoughts on what I see happening on a daily basis in the I’On real estate market. That’s right, I said daily! This market is constantly changing and while historical data and current stats certainly paint part of the picture, I want to give you the rest of the story…..

After a dismal fall and early winter season that saw very little activity in the I’On real estate market, things have definitely changed in the last few weeks. There are more buyers looking at houses and making offers, not only in I’On, but throughout the Mt. Pleasant real estate market.

Million Dollar I’On Homes Starting to Move

For example, three homes with asking prices at or above $1M went under contract in I’On in the last 7 days:

• 36 Robert Mills – asking price of $1,279,000
• 185 N. Shelmore – asking price of $1,199,000
• 40 Perseverance – asking price of $950,000

It has been many months since this happened in I’On!

More Buyers Looking at I’On Homes

Last week, I averaged 3 showings on each of my I’On listings. While not necessarily robust activity, it is a major improvement from what we were experiencing during the fall and winter. I’m also getting more phone calls on these listings. And, guess what? The calls aren’t about renting, they’re about buying! Some of this can be attributed to the spring season, which is always the busiest time of year in the I’On market. But I also believe there are some other factors in play:

• Some buyer confidence is starting to return – stock market is surging (thank you!!!)
• Recent good news on new home sales – check out the CNN article
• Interest rates remain incredibly low
• Prices have come down to much more affordable levels in all price ranges

What is the Direction of the I’On Real Estate Market?

Does this mean that we are starting to see a surge in sales? I’m not so sure that’s the best way to characterize it. However, I do believe the recent activity suggests that the worst of this market may just be behind us. If this is true, it is welcome news for I’On home sellers. However, let me caution all sellers!!! It is clearly going to take quite some time before the market shifts back to one that is significantly more favorable to sellers.

Buyers Still in Control

Buyers still have the upper hand as there continues to be a lot of I’On homes for sale in every price range. Right now, there are 83 homes on the market in I’On. With only 18 sales in the last 6 months, the pressure on home pricing will likely continue until the supply of homes for sale falls more in line with the demand. That is going to take some time.

Bottom line? We have a long way to go to achieve a more balanced market. But, recent events suggest that maybe things are starting to change just a little. Stay tuned to this I’On Real Estate Update for my continued analysis of what is happening in the I’On real estate market.

Also, please feel free to contact me if you would like to discuss this post or need any help with buying or selling a home.

Chuck Avera
Keller Williams Realty
Office: (843)452-5300

www.ChuckAvera.com
I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate
Follow me on Twitter at www.Twitter.com/ChuckAvera

As you would expect, there are lots of buyers looking for great deals in the
I’On Real Estate market. And, why not? Lots of sellers really need to get out and they are offering many concessions to get their homes sold.

Short Sales Are Very Attractive to Buyers

One of the most sought after buyer “deals” in today’s I’On real estate market is the short sale. Simply put, a short sale is a transaction in which the seller’s mortgage lender agrees to accept less than the balance due on the loan at closing.

How Does the Short Sale Help Buyers, Sellers and Lenders?

In a perfect scenario, a short sale can be advantageous to all parties involved:

• For the buyer, it’s a possible opportunity to purchase a home at a deep discount to the market
• For the seller, it’s a much better alternative than a foreclosure. There is less impact on the seller’s credit and it also provides a way for the seller to salvage some dignity and avoid the public embarrassment that a foreclosure can sometimes bring.
• For the mortgage lender, a short sale can be a less costly solution than foreclosure, particularly in a market with declining prices

The Short Sale Approval Process Can Be Very Time Consuming!

If you are considering buying a short sale property, it’s important to know that getting bank approval is a very painstaking and time consuming process. It requires a substantial amount of paperwork form the seller, including very complete documentation of the hardship that the mortgage payment is causing the seller. There are many things that can complicate the approval process:

• Lack of sufficient documentation from the seller and seller’s REALTOR
• The lender has an overworked and understaffed loss mitigation department which can bring the process to a “crawl”.
• A second mortgage (or equity line of credit) from a different lender – in this case, both lenders have to be satisfied with the final payoff. This can be very difficult
• Impatience on the part of the buyer – many buyers just get tired of waiting for approval and move on!

As the number of short sales increase, it is becoming more difficult for the lenders to process all of the requests in a timely fashion. Some are better equipped to handle the load than others. One bank recently told me that it could take up to 90 days to get an approval. I’m aware of another situation where a Mt. Pleasant buyer has been waiting 7 months for an approval from two lenders!

Patience With the Short Sale Process Can Be Very Beneficial to All Parties

While these are extreme cases, these are becoming more common as more sellers look for ways to get relief and avoid foreclosure. The message is clear – A high degree of patience is required on the part of all parties in order to achieve a positive outcome. However, as challenging as the process is, it can be a great solution for all parties involved.

If you are a buyer or a seller and would like more information on the short sale process, please contact me.

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
www.ChuckAvera.com

I’On Homes and Lots For Sale
Mt. Pleasant Real Estate For Sale

Virtually every day I am asked what percentage of asking price sellers are receiving for their Mt. Pleasant real estate. It’s a good question and one that is of interest to both buyers and sellers. Buyers want to know this so they have a better handle on what to offer for a particular property and sellers want to know as it helps them estimate their “net” after negotiating an offer.

So, what’s the answer? Well, you’re going to love this, but the answer is….. “it just depends”.

Buyers Market vs. Sellers Market – It Makes a Difference

The biggest factor is the state of the current market. Right now, we are in a buyers market and the percentages are significantly lower than they were a few years ago when we were in a sellers market. The numbers below show a difference of over 5% when comparing this year’s sales in Mt. Pleasant compared to the same period in 2006 when it was still a rather healthy sellers market:

• Through March 16, 2009 – 111 homes sold, averaging 92.6% of asking price
• Through March 16, 2006 – 249 homes sold, averaging 97.7% of asking price

Price Range of Homes Plays a Role

The percentage also depends on supply and demand for certain types of homes in different price ranges. Right now, there is much less demand for Mt. Pleasant real estate priced over $750,000 than for homes priced below $500,000. There are simply more buyers in the lower price ranges. Here is the 2009 year to date statistics by price range:

• All Mt. Pleasant Single Family Homes – 92.6% of Asking Price – 132 Days on Market
• Below $300K- 94.2% of Asking Price – 98 Days on Market
• $300K – $500K – 94% of Asking Price – 128 Days on Market
• $500K – $750K – 94.3% of Asking Price – 164 Days on Market
• Above $750K – 88% of Asking Price – 234 Days on Market

What About Days on Market for Mt. Pleasant Homes?

As you can see from the data above, once you get above $750,000 in price, the percentage is significantly lower than homes sold below that price point. What is also consistent is that the higher priced homes take longer to sell. There is a big difference between the 98 days it takes to sell a Mt. Pleasant home that is priced below $300,000 and the 234 days it is taking to sell a home priced above $750,000.

I hope this gives you some insight into why there is no easy answer to this question. If you have any questions, please feel free to contact me. Also, I encourage you to post a comment to this article below.

Have a great week!

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
www.ChuckAvera.com

I’On Homes For Sale
Mt. Pleasant Homes For Sale

While activity in the I’On Real Estate market still remains sluggish (in terms of homes going under contract), there were two homes that closed last week in I’On, bringing the total number of homes closed this year to 4. Below is some information on these two properties:

20 Edenton Road:

• 4BR, 4 1/2 Baths
• 4,000 Sq ft
• 2 Car Garage
• Last Asking Price – $1,295,000
• Sold Price – $1,100,000
• Sold Price/Square foot – $275
• Days on Market – 455

This is a new home on an interior lot that was originally listed for $1,495,000 in November of 2007

90 North Shelmore Blvd:

• 4BR, 3 1/2 Baths
• 2,773 Sq ft
• Last Asking Price – $729,000
• Sold Price – $690,000
• Sold Price/Square foot – $249
• Days on Market – 182

This is a 6 year old home on an interior lot that was originally listed for $792,000 in August of 2008.

Seller Tips to For Achieving Success in This Market:

As we head into the spring season, we should see a pick up in contracts written on I’On homes. This is based on the fact that most of the real estate activity during the past several years have ocurred during the March through June period. While the market should pick up, I’On sellers will still be dealing with buyers that are hyper value sensitive. If you want to sell your I’On home during this “busy” season, below are some tips that can help:

• Price your home ahead of the market and your competition – this is critical! More on this concept in a future article.
• Stand out from your competition – stage the home if necessary. Have your home in “tip top” shape!
• Be prepared for ALL types of offers asking for various seller concessions, including price
• Be open to creative terms, including financing, to “seal the deal”
• Understand that many buyers are reluctant and nervous – be prepared for buyer remorse
• Get to the closing table – this requires a “tight” sales contract and attention to details!

There is no doubt that selling a home in this market is challenging. But, with the right focus and energy on the process, you can have a successful result. Please feel free to call me or email me if I can help in any way.

Also, please stay tuned to this blog for more I’On real estate updates as well as future articles with tips on buying and selling in this challenging market. In addition, you can always see details on all I’On homes for sale 24 hours a day.

Have a great week!

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
www.ChuckAvera.com

I’On Real Estate For Sale
Mt. Pleasant Real Estate for Sale

With all of the extremely negative press these days about the real estate market, I thought I would try to give you some perspective on what is really happening with our local Mt. Pleasant market. All real estate is local and I believe it is important to understand the health of our local market, which can be very different from what the national press is reporting.

Year to Date Activity in Mt. Pleasant
So, what is really happening in the Mt. Pleasant real estate market? Well, we are certainly feeling the impact of the national recession in Mt. Pleasant, but the impact has been less harsh than it has been in many parts of the country. First, let’s review some statistics. Below are some year to date numbers for home sales and pricing in Mt. Pleasant through March 4th:

2009
Single Family Homes Sold – 88
Median Price – $342,500

2008
Single Family Homes Sold – 146 (down 39% from 2008)
Median Price – $389,000 (down 12% from 2008)

There are currently 1,046 single family homes for sale in Mt. Pleasant, which is slightly down from this time last year, but not significantly. To see information for all homes for sale in Mt. Pleasant by price range, click here.

So, what is the bottom line? First, the stats above indicate a relatively slow start to the new year in terms of the number of homes sold when compared to 2008. However, there are 119 homes currently under contract in Mt. Pleasant, pending closure. Most of these should close in the next 30-45 days which will help boost the number of 1st quarter sales significantly. So, I expect that by the end of March, the percentage decrease from 2008 won’t be as significant as it is right now.

Some Good News
The number of showings on homes for sale in Mt. Pleasant has been rising in recent weeks and homes that are priced well and in excellent condition are getting sold. We are also heading into the spring season which always provides an “uptick” in home sales in Mt. Pleasant. In fact, the months of May through August typically have the highest number of closings than any other months of the year in Mt. Pleasant. Finally, many economists expect that the stimulus package, which provides for an $8,000 tax credit for first time home buyers, and continued record low interest rates will have a positive impact on home sales during 2009.

So, if you are a buyer, BUY! It is a great time as prices and interest rates are low. This opportunity will not last forever. If you are a seller, you have a lot of competition, so get your home PRICED RIGHT and in TOP CONDITION and you will greatly increase your chances as we move into the “busy” real estate season.

Stay tuned to this blog for regular updates on Mt. Pleasant real estate throughout the year and other interesting real estate news.

Chuck Avera
Keller Williams Realty
Office: (843)452-5300

http://www.ChuckAvera.com

Mt. Pleasant, SC Homes, Condos and Real Estate

Since my last update on February 12th, there has been one home sale in I’On:

15 Eastlake Rd.
3,906 Sq ft.
5BR, 4 full & 2 half baths
Lakefront
List Price – $1,250,000
Sold Price – $1,135,000

In contrast to a fairly strong start to the 2008 I’On real estate market, 2009 has been rather disappointing so far. Through the first 2 months of this year, there have only been 2 homes close in I’On. In 2008, there were a total of 8 homes sold in January and February. With only 2 homes currently under contract in I’On, the first quarter is likely to be one of the slowest on record in the neighborhood.

Lots of Buyers “Waiting” For the Best Deal
Clearly, the I’On real estate market is feeling the impact of the recession in a pretty significant way. While there have been a lot more people viewing properties in the last couple of months, many buyers are still having a very difficult time “pulling the trigger” on a purchase decision. Many are trying to time the market and get the best possible deal they can while others are just plain scared and aren’t sure why. My belief is that many of the “market timers” have lost sight of the primary reasons driving their home purchase – a different neighborhood, a better school district, proximity to work or recreation, different floor plan, more space – and they become hyper focused on price and price alone. Unfortunately, real estate is just like the stock market – it can’t be timed unless you are very, very lucky!

But, not all buyers are trying to time the market. There are many home buyers that would make an offer in an instant if they could just sell their own home. And, there are others that want to buy, but are having a difficult time obtaining financing because of tighter lending requirements. All of these things along with the uncertainty of the job market are having a significant impact on this market, particularly in more affluent communities like I’On.

Mt. Pleasant Faring Slightly Better
Finally, while I’On numbers are down significantly, the overall market for single family homes in Mt. Pleasant is faring a little better, particularly in terms of the number of homes going under contract. For the first two months of the year, there have been 78 homes sold in Mt. Pleasant compared to 144 in the same period last year. However, there are currently 122 homes under contract in the Mt. Pleasant market. The majority of those will close in the next 30-45 days which will provide a significant boost to the YTD sales for the Mt. Pleasant real estate market by the end of the 1st quarter. The median asking price for these 122 homes under contract is $424,000. Interestingly enough, only 7 of those 122 home under contract have an asking price above $1M. Obviously, the vast majority of active home buyers in Mt. Pleasant are focused on price points that are significantly lower than what is currently available in I’On.

Will the Spring Season be Solid?
The good news is that the spring season is upon us and if history is any guide, it should result in an increase in home sales in I’On from what we have seen in recent months. However, this economy is very unpredictable and only time will tell if historical patterns will repeat themselves. It should be interesting! In the meantime, if you are a buyer, buy! It’s a great time for you! If you are a seller, get your home priced right and in top condition! You’ll have a much better chance of selling in this market!

I will be posting regularly to this blog throughout the year, so stay tuned for more updates on the I’On real estate market. Also, you can check out information on ALL homes for sale in I’On by going to www.IonHomeInfo.com.

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
www.ChuckAvera.com

I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate