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