Mount Pleasant Homes Below $500K – Prices are Increasing

Overall, the market for Mount Pleasant single family homes priced below $500,000 is quite strong as we currently have only 3.7 months of inventory in that price segment.  As we move into the 2012 real estate market, the lower inventory levels in this price segment should provide us with some price appreciation.  While the price appreciation will probably be rather small (the days of 15-20% per year are over!!), it is good news for Mount Pleasant home sellers.  The chart below shows a further breakdown for months of available inventory by price range…

As you climb the price scale, it becomes much more challenging for sellers.  As you can see from the chart, the months of inventory for homes above $500,000 is significantly higher.  It is not likely that we will see any price appreciation in these segments until we see a significant increase in demand and lower inventory levels.

Mount Pleasant Condo Market – Improving, but Lags Single Family Market

In contrast, the Mount Pleasant condo market is not rebounding quite as quickly as the single family home market.  For example, there are 7.7 months of available inventory for condos, 2 months more than we have for single family homes.  In addition, the luxury condo market is really struggling as there are 29.3 months of inventory for condos priced above $500K versus only 7.1 months for condos priced below $500K.  The chart below shows a comparison between the single family and condo inventory levels…..

What’s Ahead in 2012 for the Mount Pleasant Real Estate Market?

As we move into the spring selling season, we will likely continue to see reasonably strong demand for homes priced below $500,000 in Mount Pleasant.  However, asking price and condition of the home will still be very important in order to obtain offers.  For homes priced above $500,000, sellers will continue to feel some price pressure until the inventory levels fall back in line with historical “sellers market” levels (usually less than 6 months of inventory).  Many of the more expensive homes will sell this year, but buyers can still afford to be very choosy when making their purchase decisions as inventory far outweighs demand right now.

If you have any questions about the Mount Pleasant real estate market or if you have any other real estate needs, please feel free to contact myself or Paige.  We are a full service real estate group that has been focused on helping Mount Pleasant buyers and sellers for more than 10 years.  Also, please feel free to visit our Mount Pleasant Real Estate website to view homes for sale in our community.  In the meantime, have a great month and stay tuned for another update in February.

Some segments of the Mount Pleasant real estate market have not fared as well in 2011 however.  Homes priced above $500,000 are experiencing much longer “days on market” and sellers are continuing to feel price pressure when getting offers.

Overall Mt. Pleasant Real Estate Market is “Balanced”

The real estate industry generally considers 6 months of available inventory as a “balanced market”.  This means that neither the buyer or seller has a significant negotiating advantage when buying or selling a home.  Inventory levels below 6 months typically suggest a market that is more advantageous for the seller and anything above is considered more of an advantage for the buyer.  As you can see from the chart below, the overall Mt. Pleasant real estate market is now “balanced” as there is approximately 6 months of inventory available for single family homes.

Mt. Pleasant Home Sellers Above $500K – Still in a “Buyer’s Market”

The chart also shows that for homes priced above $500,000, the challenge to sell is much more significant, particularly for sellers above $1M.  It is going to take some time for the more “pricey” segments of the Mount Pleasant market to see any significant price appreciation as we continue to work through the existing inventory.

If I can answer any questions about this Mt. Pleasant real estate post or if you are thinking of buying or selling your 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.  Enjoy the fall season and all of the wonderful events that Mt. Pleasant has to offer!!

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.

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.

]]> http://blog.mtpleasantscrealestatesearch.com/2010/04/mt-pleasant-home-sales-gain-traction-but-buyers-market-still-on.html/feed 1 http://blog.mtpleasantscrealestatesearch.com/2010/03/mt-pleasant-real-estate-update-march-8th.html http://blog.mtpleasantscrealestatesearch.com/2010/03/mt-pleasant-real-estate-update-march-8th.html#comments Mon, 08 Mar 2010 21:01:23 +0000 chuckavera http://blog.mtpleasantscrealestatesearch.com/?p=701 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”.

Mt. Pleasant Home Sales in the $500K – $750K Range are up 42%

It is encouraging to note that the highest year-over-year growth rate was for homes sold in the $500K to $750K price range.  Home sales in this price range were up 42% over 2009. This could be a sign that more high-end buyers are re-entering the market.  However, Mt. Pleasant home sales above $1M were flat during the first two months of the year.  This is the price range that is feeling the most impact from this buyer’s market.  In fact, since my last report on January 20th, the months of available inventory for homes priced above $1M has risen to 66 months from 63 months.

What Was the Impact on Mt. Pleasant Home Prices in the First 2 Months?

The pressure on Mt. Pleasant home sellers to reduce prices continued in the first two months. This is supported by the fact that MLS price reductions outnumbered price increases by about 12 to 1 during the period.  However, there was some positive news for sellers.  The median selling price obtained for the 147 homes sold in the first two months was up 8.3% to $325,000.  No matter how you look at the numbers, this is a good sign for sellers that the trend may be starting to change.  As we get more sales data during the next few months, we will be able to determine if this is a real trend or just a “blip”.

If you have any questions about this post or if you have any real estate needs such as buying or selling your home, please contact us.  All of us at The Chuck Avera Team will be happy to help you in any we can.

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.

Belle Hall Pricing Faring Better than Most Mount Pleasant Neighborhoods

While price per square foot is down 13% from its peak, Belle Hall has fared much better than other Mount Pleasant neighborhoods during this same period:

• Hamlin Plantation - Down 22%
• Charleston National - Down 22%
• I’On – Down 20%
• Dunes West – Down 19%
• Brickyard - Down 19%
• Park West – Down 18%

This speaks volumes about the continued popularity of Belle Hall Plantation with real estate buyers.  With a great location close to I-526 and shopping and a large selection of homes in every price range, Belle Hall has an advantage over many Mount Pleasant neighborhoods in terms of the flexibility it offers.

Belle Hall Homes For Sale Continues to Trend Down

The pricing in Belle Hall should feel less pressure in 2010 as the number of Belle Hall homes for sale is now down to 36.  This is significantly below the peak of 68 homes for sale in April, 2008.  19 of these homes are located in Hibben (22, including pendings) leaving only 17 homes for sale in all other sections of Belle Hall.  This is good news for sellers as we head into the traditional spring busy season.

If you have any questions about this post, please contact us.  We will be happy to assist you in any way we can.  Also, if you are thinking of selling your Belle Hall home this year, please contact us.  Our strong marketing presence and understanding of this market will give you an advantage when selling your home.

Mount Pleasant Home Sales Decline Again in 2009

Since peaking in 2005 with 3,144 sales, the number of homes sold in Mt. Pleasant has been steadily decreasing.  In 2009, there were 1,161 homes sold in Mt. Pleasant (see the chart below).  While this seems low compared to the 2005 peak, it was only a 13% decrease from the number of homes sold in 2008.  This was the lowest percentage decrease since the market started to favor buyers in late 2005 to early 2006.

Inventory of Homes For Sale in Mount Pleasant Still High

While the inventory of Mount Pleasant homes for sale is trending downward, it hasn’t fallen enough to have any positive impact on pricing. For example, at the peak of the market in 2005, the number of homes for sale in Mount Pleasant was below 500.  At the end of December, there were 1,448 homes for sale in Mount Pleasant.  Based on the pace of sales for the 2nd half of 2009, that inventory level represents 13 months of available inventory. So what does that really mean?

More Than 6 Months of Inventory = Buyer’s Market

A buyer’s market generally occurs when there is more than 6 months of available inventory. This means that the buyers generally have more leverage in contract negotiations because they have much more inventory to choose from.  This puts pressure on pricing, particularly for those sellers who must sell quickly.  Buyers are looking for the right home, but they are also looking for value.  As long as competition for buyers remains high, sellers will continue to reduce their prices in order to attract buyers.

Less Than 6 Months of Inventory = Seller’s Market

When there is less than 6 months of available inventory, the seller will generally have more leverage in contract negotiations.  Since there are fewer options for buyers to choose from, there is much less pressure on pricing.  In fact, prices may even be on the rise in some segments of the market.

Breaking Down the Current Mount Pleasant Real Estate Market

Certain market segments will fare better in a buyer’s market than others.  For example, in Mount Pleasant, the market for homes priced above $1M is not faring nearly as well as less expensive homes.  Currently, there are 158 homes for sale above $1M.  Based on the rate of sales activity for the past 6 months, this represents 63 months of available inventory!! On the other hand, there are only 8.5 months of available inventory for homes priced below $300,000.  While still a buyer’s market, this price segment is faring much better!  The chart below shows the months of available inventory for all Mount Pleasant homes for sale.

What’s In Store for Mt. Pleasant Real Estate in 2010?

Many of the “experts” in the press are predicting a turnaround in the national real estate market in 2010.  I think in most cases, they believe that we will find a “bottom” in 2010. Once that happens, they expect that we will start to see a recovery in pricing. Both of those scenarios are possible, but not necessarily likely.  The big question is “What will happen in our market in 2010″?  Let’s break it down…

Balanced Market Possible in 2nd Half Homes Below $500,000

I believe it is possible that we could move into a “balanced” real estate market (6 month of inventory) in Mount Pleasant this year for certain price ranges, specifically for the market below $500,000.  There is currently about 9 months of available inventory for homes in this price range.  If we see a significant increase in demand during the spring, that number could fall to 6 months, or even lower.  If this happens, we could see prices in this range start to stabilize, but it’s not likely that we will see prices start to trend upward.

For homes priced above $500,000, it is unlikely that we will see a balanced market in 2010. There is just too much inventory to burn through.  So, sellers will continue to feel price pressure for homes above $500,000 throughout the year.

Please stay tuned to this site for regular updates on the Mount Pleasant real estate market as we move through 2010.  In the meantime, if I can help you in any way with your real estate needs, please contact me.

Below are 10 tips that can help Mt. Pleasant sellers boost the curb appeal of their home:

1. Get the home pressure washed and re-paint any peeling trim or exterior paint.
2. Trim shrubs and trees in the front yard and make sure the grass is cut and neatly trimmed at all times.  During the fall and spring, make sure that leaves are removed from the yard.  Also, put away lawn tools, trash cans, hoses, etc.
3. To make your home look even more high end and well kept, weed all flower beds and install a fresh layer of pine straw or mulch.
4. When visible from the street, replace or repair that tired looking garage door.  Also, make sure your new garage door is in tune with the home’s architectural style.
5. Define the approach to your home….Add a stone walkway or path leading to the house. Another option is to define it with shrubs or flowers.
6. Add some landscape lighting leading up to the front door.  In addition to “setting the mood”, properly placed lighting can draw the buyer in.  Make sure that all exterior lighting is turned on at night.
7. If you have a front porch, dress it up with plants and flowers.  Also, make sure that any porch furniture has a clean and fresh look. Consider adding new cushions.  This can immediately make the yard more inviting and comfortable.
8. Replace exterior lighting fixtures and front door hardware if necessary.  The elements in the Lowcountry are not usually very kind to exterior accessories.
9. If your driveway is cracked, consider repairing it or having it resurfaced.
10. Make sure that your mailbox is attractive.  If it’s old and falling apart, install a new one.

In summary, first impressions are critical in this market!  It all starts with an exterior that invites buyers in.  If the exterior of the home needs a lot of work, buyers will assume that the interior is no different.  Don’t let them “pass” on your home before even coming inside!

I encourage you to share any additional thoughts you may have on enhancing curb appeal by commenting below.  In addition, please contact me if you have any questions on this topic or have a real estate need that I can help you with.

Can One Distressed Sale Impact Value?

For example, let’s say that the recent sales for comparable homes in a neighborhood suggest that the average value is approximately $350,000.  But, suddenly a neighbor’s home is sold at a foreclosure auction for $250,000.  Does that mean that the average market value for homes in that neighborhood is now at $250,000 instead of $350,000?

This answer to this question is not an easy one.  I have spoken to some local appraisers about this issue and they tell me that it really depends on how many distressed sales there currently are in that particular market.  For example, if a high percentage of recent home sales in a neighborhood have been distressed, then a real estate appraiser will likely take those comparable sales into consideration when determining value.  On the other hand, if distressed sales comprise a very small percentage of the recent activity, it is less likely that the appraiser will use those distressed sales as comparable data in determining value.

This is good news for sellers of homes in neighborhoods that have had very few distressed sales in recent months.  It’s not likely that their market value will be adjusted significantly just because a bank decides to “dump” a property at a price that is well below market value for that neighborhood.

Ultimately, It’s the Real Estate Appraiser’s Call

However, it is important to note that this is always going to be judgment call on the part of the real estate appraiser.  Determining the true value of a home can be very challenging in this market environment.  There are fewer home sales which translates to fewer comparable properties for appraisers to use in their evaluation process.  This requires the appraisers to really “dig deep” for relevant comparable homes to use in their market analysis.  Sometimes the appraiser may have no choice but to use a few recent distressed sales in their market analysis.

If you have any questions about this post, please contact me.  Also, please feel free to use the space below to comment.

Hibben Real Estate Activity is Up, But Prices Down

Through July, there were 11 home sales in Hibben compared to 9 sales through the end of July, 2008.  This is good news, but there continues to be a lot of pressure on pricing.  Below is some key data on the Hibben homes sold this year compared to last year:

2009 – 11 sales at a median price of $728,000 or $203 per square foot

2008 – 9 sales at a median price of $655,000 or $239 per square foot

As you can see, the median price is actually $73,000 higher than last year, but the average price per square foot received for these homes is down 15% from 2008.  The higher median price is simply a function of a few more higher priced homes selling this year than last year. With only 11 homes sold to use for analysis, the median price can rise or fall significantly with just 1 or 2 new sales.

Currently, there are 26 homes for sale in Hibben.  Assuming that the rate of sales so far in 2009 continues, there are currently 16 months of available inventory in Hibben.

Belle Hall Real Estate Sales Down YTD

For the rest of Belle Hall real estate market, the story is slightly different.  The number of homes sold in Belle Hall is down 34% in 2009, which is a sharp decline compared to the same period last year:

2009 - 19 sales at a median price of $270,000 or $161 per square foot

2008 - 29 sales at a median price of $310,000 or $167 per square foot

In addition, median price is down 13%, but price per square foot is down only 4% from last year.  So, pricing for the rest of Belle Hall has fared somewhat better than Hibben, where the more expensive homes are being discounted a little more heavily in order to get them sold. Also, there is more demand for homes in the $250K to $300K price range, therefore pricing pressure is less severe.

Currently, there are 26 Belle Hall homes for sale (excluding Hibben).  At the current rate of turnover, there are approximately 10 months of available inventory in the Belle Hall real estate market.

Please feel free to contact me if you have any questions about this update or if you have any other real estate questions.  Also, if you would like more information on the state of the local market, please take a look at my new real estate market statistics page on my web site to see graphical representations of trends in the market for Mt. Pleasant as well as other local communities.