With the recent record high numbers of short sales and foreclosure sales, many Mt. Pleasant homeowners are concerned about the impact these distressed sales are having on their home’s market value.  This is a very legitimate concern, particularly for homeowners that currently have their homes on the market and for those that may be considering selling their home in the near future.

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The overall Belle Hall real estate market has been quite interesting this year.  In order to get some good perspective on what has been happening, it is important to break down the market into two categories: Belle Hall and Hibben.  The markets are reacting very differently in these two categories.  Let’s take a look at some of the data for this year compared to 2008:

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Interest rates change constantly, but it is important to know that rates are cyclical. If rates are currently at historical lows then we know there is a strong probablility rates will go up again, and vice versa. Certain economic indicators such as unemployment data, consumer price index, retail sales data, and consumer confidence all have an effect on mortgage interest rates. But the key factor to watch is the relationship between STOCKS and BONDS.

When the economy is slow and the stock market is “bearish,” many investors move money out of stocks and into bonds and mortgage-backed securities. This causes mortgage interest rates to go down. When the economy is doing well, the stock market rallies and is considered “bullish.” Investors then have a tendency to move their money out of that safe haven of bonds and mortgage-backed securities and back into stocks. As a result, mortgage interest rates go up.

The moral of the story? When the Fed cuts their rate, mortgage interest rates do not necessarily go down in concert with the Fed rate.

Thank you to Lorcan Lucey with Lucey Mortgage for this insight into mortgage rates!

As of January 13th, there have been 3 homes go under contract in Belle Hall Plantation in the new year. Considering we are in the “dead of winter”, this is a pretty good start to 2009. All 3 of these homes went under contract between January 5th to 9th. Below are the details on these homes:

394 Fern House Walk – Courtyard
3 Bedrooms, 2 Baths
1,403 Square Feet
Asking price – $252,500

708 Windchime Alley – Veranda
3 Bedrooms, 2 Baths
1,470 Square Feet
Asking price – $257,900

856 Tupelo Bay Drive – Hibben
4 Bedrooms, 3 1/2 Baths
4,365 Square Feet
Asking price – $899,900

Stay tuned to this blog throughout the year for regular updates on the Belle Hall real estate market. To see details on all homes currently for sale in Belle Hall, please visit www.BelleHallHomeInfo.com.

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
http://www.ChuckAvera.com
—
Belle Hall Homes and Real Estate for Sale
Mt. Pleasant, SC Homes, Condos and Real Estate

The Belle Hall real estate market did not escape the pull back in home buying in 2008. While the numbers are not nearly as bad as some parts of the country, we did have a difficult market during the year with a lot of pressure on pricing. As you all know, there are many subsections in Belle Hall Plantation which, in some cases, represent very different markets. That was the case in 2008, particularly for Hibben. There was more down side pressure on pricing in Hibben in 2008 and I thought it would be good to separate that subsection out in order to add some perspective to the numbers. So, the first set of 2008 and 2007 figures below is for all subsections of Belle Hall except for Hibben. Please note that there were no sales in Evian in 2008 and one sale in The Island section during the year. The data from that one sale is included below.

Belle Hall (excluding Hibben):

2008:

• Homes sold – 42 – down 25% from 2007
  
• Selling Price per square foot – $164 – down 7% from 2007
  
• Median Sales Price – $305,500 - down 6% from 2007

2007:

• Homes sold – 56
• Selling Price per square foot – $176
• Median Sales Price – $325,000

As you can see above, the number of homes sold in Belle Hall was down significantly in 2008, but prices fared a little better as the median price was only off 6%.

Hibben:

2008:

• Homes sold – 16 – down 30% from 2007
  
• Selling Price per square foot – $228 – down 10% from 2007
  
• Median Sales Price – $614,000 - down 16% from 2007
  

2007:

• Homes sold – 23
• Selling Price per square foot – $253
• Median Sales Price – $735,000

Inventory did not change much during the year. We started the year with 54 homes for sale and ended 2008 with 53 homes for sale. There are currently 5 homes under contract in Belle Hall – 1 in the Veranda, 1 in Battery Point and 3 in Hibben.

So, what’s in store for 2008? That’s the $64,000 question! First, buyers must regain some confidence in order for activity to pick up. The good news is that mortgage interest rates are incredible right now and they represent a once in a lifetime opportunity for buyers. Hopefully, that will help push the market in a positive direction this year. And, spring is coming. It is typically the best time of year for real estate, so the results from that period will be a big indicator of things to come.

Keep in mind that we are still in a buyer’s market. As long as inventory remains high, it will be a while before we return to a more “neutral” market. The inventory in Belle Hall has not shown any real signs of significant reduction in the last couple of years. To add some perspective on where we are with inventory, there were only 14 homes for sale in all of Belle Hall at the peak of the Seller’s market in August , 2005!! And, 79 homes sold that year in the neighborhood!!!

Please stay tuned to this site for more postings in the weeks and months to come. I will be providing you with real estate news for Belle Hall and other parts of the Mt. Pleasant market. Also, please go to www.BelleHallHomeInfo.com to see details on all homes currently for sale in the neighborhood.

Happy New Year!!

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

Belle Hall Homes and Real Estate for Sale
Brickyard Homes and Real Estate for Sale
I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate

During the month of November, there were three houses that closed in Belle Hall Plantation:

359 Old South Way – $278,900
365 Antebellum – $284,500
262 Historic – $307,000

Below are some stats that compare 2008 sales activity through November to the same period in 2007. As you can see, the number of homes sold is down this year by 27%. In addition, the the median price is down by almost 10% from 2007. Finally, the average days on market is up significantly, reflective of the current market conditions we are experiencing.

2008:

• Homes sold through November 30, 2008 – 55
  
• Average Days on Market – 122
  
• Median Sales Price – $314,000

2007:

• Homes sold through November 30, 2007 – 76
• Average Days on Market – 91
• Median Sales Price – $348,250

Currently, there are 49 homes on the market in all phases of Belle Hall. The median asking price for these homes is $650,000 and the average days on market is 168. This is down slightly from the end of November, 2007. At that time, there were 55 homes on the market in Belle Hall. Below is the number of homes for sale by subsection:

Hibben – 26
The Veranda – 7
Evian – 6
Rice Bay – 4
Battery Point – 4
Courtyard – 2

For more detailed information on houses for sale in Belle Hall, please go to www.BelleHallHomeInfo.com

—
Chuck Avera
Keller Williams Realty
Office: 843-452-5300
http://www.ChuckAvera.com
—
Belle Hall, SC Homes for Sale, Condos and Real Estate
Brickyard, SC Homes for Sale, Condos and Real Estate
I’On, SC Homes for Sale, Condos and Real Estate
Mt. Pleasant, SC Homes for Sale, Condos and Real Estate

August was a fairly strong month for real estate closings in Belle Hall. During the month, there were 8 homes that closed in the neighborhood, bringing the total number of homes closed in Belle Hall during this year to 46. While the numbers are down in virtually every category this year, the real estate market in Belle Hall is still rather steady when compared to other communities in the Charleston area and throughout the country. Below is a comparison of the activity in Belle Hall through the first 8 months of this year as compared to the same period in 2007.

2008:

• Homes sold through August 31, 2008 – 46
  
• Average Days on Market – 116
  
• Median Sales Price – $336,000
  
• Homes for sale as of August 31, 2008 – 55

2007:

• Homes sold through August 31, 2007 – 62
• Average Days on Market – 94
• Median Sales Price – $356,750
• Homes for sale as of August 31, 2007 – 68

As you see in the numbers above, the inventory of available homes in Belle Hall has decreased 19% from the peak in August of last year when 68 homes were on the market. Demand for homes has not increased accordingly and as a result, the median price for homes sold this year is down about 6% from 2007. However, continued reduction in the inventory levels should help stabilize pricing over time, particularly as more buyers re-enter the market.

Please stay tuned for more updates on this site and also check out my Belle Hall Home Info site for detailed information on all homes for sale in the neighborhood, including pricing, photos and much more!

While the market is reasonably steady in Belle Hall this year, the numbers are down when compared to activity in 2007. Below are some stats for the first 7 months of last year compared to this year:

2008:

• Homes sold through July 31, 2008 – 38
• Average Days on Market – 120
• Average Sales Price – $427,745
• Homes for sale as of July 31, 2008 – 61

2007:

• Homes sold through July 31, 2007 – 51
• Average Days on Market – 83
• Average Sales Price – $470,751
• Homes for sale as of July 31, 2007 – 66

As you can see from the data, it is taking longer to sell fewer homes in 2008 and there has also been some pressure on pricing this year as evidenced by the drop in the average sales price. This is a result of continued high levels of inventory and less demand for housing.

The good news is that the inventory is down slightly from last year. However, for us to see a rebound in the market with less pressure on pricing, the inventory levels are going to need to drop further. For the last two years, the active inventory in Belle Hall has been fluctuating between 50 to 68 homes. To put this in perspective, at the peak of the market in August, 2005, there were only 13 homes for sale in Belle Hall!

Please stay tuned for more updates on this site and also check out my Belle Hall Home Info site for detailed information on all homes for sale in the neighborhood, including pricing, photos and much more!

Last Week:
On Friday, June 6, the Labor Department reported that the Unemployment Rate jumped to 5.5% from last month’s reading of 5%. The 1/2 point rise was the biggest increase since February of 1986, while the unemployment rate is the highest since October of 2004. Estimates were looking for a 5% rate. Although the jump in the unemployment rate is getting a lot of attention, it should be noted that the rate was at 5.2% a month earlier. So while the change is negative, it is not as dramatic as the media is portraying.

The US lost jobs in May for a 5th month in a row as payrolls fell by 49,000 vs estimates of 60,000. The economy has lost 324,000 jobs so far this year. Overall, the job creations were better than forecast, but the big jump in the unemployment rate pushed stocks much lower and pushed mortgage rates down a bit.

MLS data for the Charleston Tri County area reports that monthly sales in May rose 5.5% from 756 units in April to 798 in May. The average sales price increased as did the average days on the market.

This Week:
Fed Chairman Ben Bernanke said “the latest round of increases in energy prices has added to the upside risks to inflation and inflation expectations”. Bernanke’s speech also suggested that the Fed is in no hurry to hike rates because of “slack” in the economy which can lower inflation.

The Mortgage Market Guide could not disagree more with Mr. Bernanke. While there are risks to continued weakness in the economy, the answer is clearly not more rate cuts….it is rate hikes. The Fed should be in a BIG hurry to hike rates. They feel that the current 2% Fed Funds Rate is about 1% to 1.5% too low. Oil prices have skyrocketed since the Fed began the latest rate cutting cycle. This is because lower rates in the US weaken the Dollar. Oil is priced in Dollars, so as the Dollar weakens, oil prices climb. Last Friday, talks of rate hikes in the Eurozone sent the Euro higher and Dollar weaker, and oil spiked $5 quickly.

Should the Fed finally figure things out and hike rates, the Dollar will strengthen, oil prices will drop back towards $100, inflation will ease, and as a result….mortgage rates will decline.

Coming Up:
The next Fed Open Market Meeting is scheduled for June 24th-25th. All eyes will be looking at what the Fed will do with rates.

Courtesy-Bank of America Mortgage

Just like most neighborhoods in Mt. Pleasant, Belle Hall is feeling the “pinch” in this real estate market. Homes sales in Belle Hall are off significantly so far in 2008 as compared to the same period last year. Through May 15th, 17 homes have sold in all phases of Belle Hall at an average of $456,986. As of this same date last year, there had been 32 homes sold at an average price of $406,830. Of the 17 homes that have sold this year, 6 are located in The Veranda, 5 in Hibben, 2 in Rice Bay, 2 in Battery Point, and 1 each in The Courtyard and The Islands.

In addition, there are 14 homes that are under contract in Belle Hall and most of these should close in the next 30-60 days. That will help the YTD numbers significantly.

Unfortunately, inventory levels remain quite high. There are currently 61 homes on the market throughout Belle Hall Plantation. Last year, there were 64 on the market at this date. To put these numbers in perspective, consider that at the peak of the market in May of 2005, there were only 15 homes on the market in Belle Hall! Until we start to see a reduction in the inventory levels, it will take longer to sell a house and there will be pressure on pricing.

If you are thinking of selling your home in this market, just remember…..you can be successful! You just need to make sure that you price it properly AND have it in immaculate condition! Buyers are being quite choosy in this market as there is so much to choose from in Belle Hall and in surrounding neighborhoods.

Keep watching this space for more updates as we move through 2008. Also, please check out http://www.bellehallhomeinfo.com/ to get details on any of the homes currently on the market in Belle Hall or other Mt. Pleasant communities.