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.

The I’On real estate market was relatively flat in 2011 when compared to 2010, both in terms of the number of I’On homes sold as well as pricing.  There were 52 I’On homes sold in 2011 compared to 51 homes sold in 2010.  For a complete list of these homes, along with selling prices and other details, please click here.  Below is a summary of 2011 activity with comparable activity for 2010.

2011 Activity:

• I’On Homes Sold – 52
• Median Sales Price – $702,000
• Median Selling Price/Square Foot – $238
• Average Sales Price – $747,346
• Average Selling Price/Square Foot – $250

2010 Activity:

• I’On Homes Sold – 51
• Median Sales Price – $737,500
• Median Selling Price/Square Foot – $250
• Average Sales Price – $756,666
• Average Selling Price/Square Foot – $250

I’On Following the “Smaller Home” Trend…

The most significant change from 2010 was that the median selling price in 2011 was down 4.8%.  This is partly due to continued price pressure, but it’s also a result of a nationwide trend that has many baby boomers preferring smaller homes on smaller lots.  This trend has also been very apparent in the I’On market in recent years.  As you can see from the chart below, the last three years have seen a significant shift in the percentage of I’On homes sold below $500,000.  I’On builders have responded to this trend and have built several small “cottage” style homes in recent years and they’re selling!  An interesting note…..While it is not shown on the chart, there were no I’On homes sold below $500,000 in 2008.

What Does 2012 Hold for the I’On Real Estate Market?

As we move into 2012, there is some encouraging news for sellers.  As of today, we only have 40 I’On homes for sale.  This is the lowest level of inventory we have seen in many years in I’On.  Unless demand falls off dramatically in 2012, the lower inventory levels should translate into fewer “days on market” and even more price stability.  I do expect inventory levels to rise over the next few months as many I’On homeowners will be putting their homes on the market as the spring selling season approaches.  However, things can change quickly in this industry, so stay tuned for regular monthly updates……

If I can answer any questions about this I’On real estate post or if you are thinking of buying or selling an I’On home, please contact me.  The I’On real estate market has been the primary market for my real estate business for many years and I offer a full range of services to assist you in any way I can.  I hope you all have a Happy New Year and continue to enjoy the many events and activities  I’On has to offer!!

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!!

• 302 N. Shelmore Blvd. – $535,000
• 70 Hospitality Street – $949,000
• 48 Montrose Road – $999,000

In addition, there have been 5 I’On homes close since my last report.  Below is a list of these homes and their selling prices:

• 9 Eastlake Road – $375,000 – $353/square foot
• 332 North Shelmore – $442,000 – $237/square foot
• 127 Civitas Street – $450,000 – $229/square foot
• 38 Hopetown Road – $925,000 – $253/square foot
• 15 Hopetown Road – $1,300,000 – $250/square foot

I’On Home Sales Up 41% in 2010

The number of I’On homes sold in 2010 continues to significantly outpace 2009.  Year-to-date, there have been 41 homes close in I’On at an average selling price per square foot of $253.  This is a 41% increase over sales activity in 2009 through the same date.  In spite of the increased activity, there continues to be pressure on pricing.  The average sales price is down 5.2% this year to $758,000 and the average selling price per square foot is down 4.9% to $253.

I’On Selling Price/Square Foot Getting A Lot of Attention with Buyers

As you know, buyers use average selling price/square foot as a key metric for determining value.  While this is clearly only one of many factors in determining value, we must not ignore it as it gets a lot of attention with buyers and appraisers.  As the above chart shows, the average selling price/square foot in I’On peaked in 2006.  Since then, this metric is down 23%. The biggest year-over-year drop was in 2009 when the average fell 12%.  So far this year, we have fallen 5% compared to 2009. Hopefully, this is a glimmer of hope that the price pressure is starting to ease somewhat.

Weak I’On Home Sales Above $1M Contributes to Lower Average Sales Prices

As you can see from the chart above, the average selling price for I’On homes has been steadily falling since the 2006 peak.  While the 32% fall in the average sales price since the peak is significant, it is also reflective of the particularly slow pace of sales for homes priced above $1M. In 2006, there were 25 homes sold above $1M through this date and so far this year, there have been only 7 sales above $1M.  That will bring any average down!!

Number of I’On Homes For Sale Remains Steady

Currently, there are 61 homes for sale in I’On.  This number has remained fairly consistent for several months now.  While there is no real trend developing, there is still some good information to be gained by looking more closely at the numbers.  The chart below shows which segments of the I’On real estate market are faring the best in this market.  As you can see, the $500K-$750K price range is currently the “hottest” market when comparing YTD sales with current inventory.  Not unexpectedly, the $1M and above market is the slowest.

If I can answer any questions about this I’On real estate 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.

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/2010/02/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.