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 0 http://blog.mtpleasantscrealestatesearch.com/2010/01/mt-pleasant-real-estate-update-2009-recap.html http://blog.mtpleasantscrealestatesearch.com/2010/01/mt-pleasant-real-estate-update-2009-recap.html#comments Thu, 21 Jan 2010 03:17:20 +0000 chuckavera http://blog.mtpleasantscrealestatesearch.com/?p=522 The 2009 Mount Pleasant real estate market continued to be a challenge for sellers and it represented value opportunities for buyers.  We are clearly still in a buyer’s market as there is much more inventory than the demand currently supports.  More on that later.  First, let’s review some of the numbers for 2009:

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.

2009 – 17 homes sold at a median price of $365,000 and a price per square foot of $147

2008 – 25 homes sold at a median price of $380,000 and a price per square foot of $173

The reduction in homes sold this year is pretty significant at 48%.  Pricing is also down from last year. The most significant statistic is the average price per square foot is down 15%. This decrease in price per square foot is a little higher than surrounding Mt. Pleasant communities, but still relatively consistent:

Hamlin Plantation – down 14%

Rivertowne – down 13%

Snee Farm – down 12%

Park West – down 10%

Dunes West – down 9%

Lots of Pending Sales in Brickyard

The good news is that there are 7 Brickyard homes currently under contract for sale, pending closing.  Most of these should close in the next 30-45 days which will narrow the gap between 2009 and 2008 YTD sales.  In August of last year, there were only 3 sales in the neighborhood.

Inventory Remains Stable

Finally, inventory remains rather stable.  Currently, there are 26 Brickyard homes for sale. Inventory has been in the mid to high 20’s for most of 2009.  Based on the current rate of sales in the neighborhood, we have approximately 11 months of available inventory in Brickyard.

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.

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!

2824 Waterpointe Circle – $459,900 – located in The Landing
3 Bedrooms, 2 Baths
2 Car garage
2,715 Square feet

2762 Merwether Lane – $339,900 – located in The Preserve
3 Bedrooms, 2 1/2 Baths
2 Car garage
2,985 square feet

Currently, there are only 13 homes for sale in all phases of Brickyard.

If you have any questions about either of these two houses, please feel free to call me. You can also get details on all homes currently for sale in Brickyard by visiting www.BrickyardHomeInfo.com.

Stay tuned to this blog for regular updates throughout the year on what is happening in Brickyard real estate.

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

Brickyard Homes and Real Estate for Sale
Mt. Pleasant, SC Homes, Condos and Real Estate

While selling a house in 2008 certainly had its challenges, the lower inventory contributed to much more stability in terms of pricing. This was not the case in other segments of the Mt. Pleasant real estate market. There were many neighborhoods that felt significant pressure on pricing as a result of large inventories and fewer buyers.

Below is a summary of Brickyard sales activity and pricing for 2008:

2008:

• Homes sold – 35
  
• Selling Price per square foot – $168
  
• Median Sales Price – $375,000
• Average Sales Price - $493,336
  

2007:

• Homes sold – 45
• Selling Price per square foot – $162
• Median Sales Price – $381,900
• Average Sales Price – $415,787

As you can see from the numbers above, pricing was not really negatively impacted in 2008. In fact, the average sales price and average selling price per square foot actually increased in 2008 while there was a slight reduction in the median price from $381,900 to $375,000.

So, what’s in store for Brickyard real estate in 2009? Obviously, a lot will depend on buyer confidence as we move through the year. If interest rates remain at these incredibly low levels and we see more stability in the markets, I feel we should have a reasonably successful year. Having said that, it is important to keep in mind that there are still some pretty high levels on inventory available in other competing Mt. Pleasant neighborhoods. These include Hamlin Plantation, Dunes West and Park West. So, buyers will still have lots of options when it comes to making a decision on a home. This will likely keep prices from increasing in Brickyard and other communities as the competition for the buyer’s dollar is going to be high.

I will be posting to this site on a regular basis in 2009, so please check back for updates. Also, don’t forget that you can view details of all homes for sale in Brickyard online at www.BrickyardHomeInfo.com.

Have a great January!

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

2650 Scarlet Oak Court $389,000
1294 Abercorn Trace $429,000
1379 Wavespray Court $375,000

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 23%. The median price is down as well, but only 2.6% from 2007. However, the average days on market is up significantly, reflective of the current market conditions we are experiencing.

2008:

• Homes sold through November 30, 2008 – 34
  
• Average Days on Market – 158
  
• Median Sales Price – $375,000

2007:

• Homes sold through November 30, 2007 – 44
• Average Days on Market – 109
• Median Sales Price – $384,450

Currently, there are 20 homes on the market in Brickyard. The median asking price for these homes is $437,450 and the average days on market is 214. This is down significantly from the end of November, 2007. At that time, there were 29 homes on the market in Brickyard. Below is the number of homes for sale by subsection:

Daniels Pointe – 1
Boone Grove – 1
Magnolia Grove – 1
The Preserve – 4
The Retreat – 4
Brickyard – 4
Collonade – 5

For more information on all Brickyard homes for sale, please go to www.BrickyardHomeInfo.com