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/2010/02/mount-pleasant-condo-market-showing-signs-of-life.html http://blog.mtpleasantscrealestatesearch.com/2010/02/mount-pleasant-condo-market-showing-signs-of-life.html#comments Fri, 05 Feb 2010 16:40:20 +0000 chuckavera http://blog.mtpleasantscrealestatesearch.com/?p=623 Through most of 2009, sales of condos in the Mount Pleasant real estate market were down significantly.  However, the 4th quarter of the year produced 97 condo sales, which is the highest number of sales since the 3rd quarter of 2008.  It’s a little early to suggest that this signifies a major shift in the market, but it is a flicker of hope for sellers that have been trying to sell their condos.  There is still a long way to go before we see a “balanced” market, but there are finally some signs of life for the condo market in Mt. Pleasant.

Mount Pleasant Condos – Price Trends

Pricing also showed a rebound in the 4th quarter as the median price for Mount Pleasant condos sold was $205,900.  This is also the highest median price obtained since the 3rd quarter of 2008.  One positive quarter does not necessarily define a trend, but it is positive news as we head into the spring selling season.  We will be watching this metric very closely over the next few months and report back to you on further developments.

It’s Still a Buyer’s Market for Mount Pleasant Condos

While the recent “uptick” in sales and pricing is very positive news, it is likely that we will remain in a buyer’s market through 2010. Let me explain…..Typically, a balanced real estate market is 6 months of available inventory.  Anything higher than 6 months of inventory represents a buyer’s market and anything less than 6 months represents a seller’s market. Based on recent sales activity and an active inventory above 400 units, we currently have a 13 month supply of inventory in Mt. Pleasant.  So, this condo market is still very much favoring the buyer.  It is highly unlikely that the current inventory can be absorbed quickly enough at the current rate of sales to achieve a balanced market this year.  This will continue to put pressure on sellers to be very competitive with their pricing in order to have a good chance of selling in 2010.

Please stay tuned to this blog for additional updates on the Mt. Pleasant condo market throughout the year.  In the meantime, if you are considering buying or selling real estate in the near future, or if you would just like to ask a few questions about the local market, please contact us.  Our real estate team has a full suite of resources to help you.

Mount Pleasant Lot Inventory Remains High

Most local builders are in no position to purchase vacant lots as much of their available capital is tied up in spec homes that remain unsold. In addition, many of the large national builders are in the same position.  Currently, there are 528 vacant lots on the market in Mt. Pleasant. Based on the last 6 months of sales history, this represents almost 65 months of available inventory!

Roughly 50% of the lots available in Mount Pleasant are in large “developer” subdivisions:

• Rivertowne – 79 Lots for Sale
• Park West – 62 Lots for Sale
• Dunes West – 46 Lots for Sale
• Darrell Creek – 37 Lots for Sale
• Belle Hall – 37 Lots for Sale

Price Pressure on Lots to Continue Through 2010

As you can see from the chart below, the median price of Mount Pleasant lot sales has been on the decline in recent years.  Because of the high inventory levels, this trend is likely to continue through 2010.  There is just not enough demand for lots in this market to suggest otherwise.  While this is not the best news for sellers in this market, there are a lot of tremendous values for buyers who may be considering an investment or even building a custom home.

Please stay tuned to this site for more information on Mount Pleasant vacant lots as we move through 2010.  If you have any questions or if we can help you with any of your real estate needs, please contact us.

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.