This continues to be a challenging year in the I’On real estate market. While there are some buyers looking for homes, activity remains quite sluggish. Showing activity has slowed since school started, but we should see a nice increase in activity as we move into the cooler months.
I’On Homes Buyers Remain Cautious
Most buyers continue to take a very cautious approach when making their purchase decisions. One of the biggest issues buyers have today is that they are nervous about overpaying for a home in a market that continues to experience declining prices. This fear, combined with the uncertainty as to when we will hit the “bottom” of the market is prompting many buyers to “sit tight” rather than make a purchase decision. For those buyers who are willing to move forward, many are submitting aggressively low offers, particularly on homes that have been on the market for many months or even years. For these buyers, the motivation is the same, they don’t overpay in a declining market.
The I’On Real Estate Market WILL Shift – But When?
It is understandable that some buyers want to “time the market” in hopes of getting the best possible price. Unfortunately, market timing has proven to be a strategy that doesn’t lead to success very often. Just as with the stock market, we won’t know that the market has shifted until it already has! But one thing is certain, this market WILL shift from one that currently favors buyers to one that will be balanced, and ultimately more favorable to sellers. The one question everyone is asking is….WHEN? Maybe the following explanation can help answer this question.
Inventory is the Key
Real estate market shifts occur whenever supply and demand move out of balance. Currently, I’On is experiencing a buyer’s market – the supply of listings far exceeds buyer demand. When more listings begin to sell, we will start to see a shift towards a balanced market and then, maybe a seller’s market. But, the timing for the next shift is very uncertain right now. To understand this better, let’s take a look at where the I’On real estate market currently stands with respect to the 3 types of real estate markets…..
3 Types of Real Estate Markets:
BUYER’S MARKET – More than 7 months of available inventory
BALANCED MARKET – Between 5 to 7 months of available inventory
SELLER’S MARKET – Less than 5 months of available inventory
The I’On real estate market is defined by inventory. Currently, I’On has 22 months of available inventory. This is based on 27 homes sold YTD and the current inventory level of 70. Inventory in I’On is down 20% in the last 12 months, but the number of homes sold in 2009 is down 36% from 2008 YTD levels. The bottom line is that demand is down significantly from 2008. Lack of demand has caused many sellers to take their homes off the market in the last year.
Below are some YTD statistics for the I’On real estate market:
2009 Through September 14th:
- Sales – 27
- Median Price – $799,000
- Selling Price/Square Foot – $266
2008 Through September 14th:
- Sales – 42
- Median Price – $856,000
- Selling Price/Square Foot – $304
Please feel free to contact me if you have any questions about this post or any other real estate questions you might have. Also, if you are interested in seeing details on any I’On home for sale, just go to the I’On page on my web site. Finally, if you would like to see real estate trends in Mt. Pleasant and other local communities, check out my market statistics page for lots of helpful charts and graphs.