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