2010:

• Homes Sold – 27 – up 42%
• Median Price – $737,500 – down 9%
• Selling Price Per Square Foot – $247 – down 9%

2009:

• Homes Sold – 19
• Median Price – $812,085
• Selling Price Per Square Foot – $270

Price Pressure on I’On Home Sales Likely to Continue

I believe the pressure on pricing is likely to continue for some time as there is still a significant imbalance between available inventory and the number of active buyers in the market (more on that later).  As the chart below reflects, at an average selling price per square foot of $247, I’On homes are now selling at 2004 price levels.

Key to I’On Home Price Stability – 6 Months of Available Inventory

As I have mentioned in previous posts, it is not likely that we will see any stabilization in prices until the number of months of inventory comes into balance.  Historically, a balanced market (one that favors neither the buyer or the seller) is approximately 6 months of available inventory.  Anything higher than 6 months of inventory typically has a negative impact on selling prices while anything less typically has a positive impact.  While certain price ranges are performing better than others in I’On, we still have a long way to go before achieving this “balance”.

I’On Home Sales Outperforming Mt. Pleasant Market Between $500K-$1M

As you can see from the above chart, the I’On real estate market segment for homes priced between $500K and $750K has the best chance of achieving this “balance” in the near term as there are only 9 months of available inventory for these homes (based on the sales rate of the last 12 months and the number of homes for sale).  Following closely with 13 months of available inventory are homes priced between $750K and $1M.  In fact, the I’On real estate market is performing better than the overall Mt. Pleasant real estate market in these two price segments.  I believe this reflects the continued popularity of I’On with most home buyers in this price range. The location, architecture, people, and beauty of I’On continues to attract!

I’On Homes For Sale Above $1M – Difficult Market Continues

Unfortunately, sales of I’On homes above $1M continue to be a struggle for sellers.  It is a simple matter of buyers in this price range not willing to re-enter the market.  As you can see from the chart above, there are 96 months of inventory in this price range!  32 of the 76 I’On homes currently on the market are priced above $1M.  This represents 42% of the I’On home inventory.  To put this in perspective, only 7% of the I’On home sales in 2010 were above $1M.

If I can answer any questions about this 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.

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.

• 70 Sanibel Street – $475,000
• 37 Sowell Street – $515,000
• 197 North Shelmore – $1,070,000

The home at 197 North Shelmore was the first I’On home to sell above $1M in 2010.  Prior to this sale, the last home to sell for a price above $1M in I’On was in November, 2009.

Through May 19th, the number of I’On homes sold is still significantly above the same period last year, though the pace has slowed somewhat in the last 30 days:

2010 I’On Home Sales Through 5/19/2010:

• 17 Homes Sold
• Average Selling Price Per Square Foot – $260
• Median Sold Price – $637,500

2009 I’On Home Sales Through 5/19/2009:

• 10 Homes Sold
• Average Selling Price Per Square Foot – $260
• Median Sold Price – $887,500

I’On Home Buyers Opting for Homes in Lower Price Brackets

While the average selling price per square foot for I’On homes sold in 2010 has remained steady, the median selling price for I’On homes is down 39% from 2009. This is reflective of buyers opting to purchase proportionately more homes in lower price brackets than they were doing in previous years.  In the last 9 months, 90% of all I’On homes have sold below $1M, yet currently 47% of all I’On homes on the market are priced above $1M.  Clearly, the market for I’On homes above $1M is very sluggish.  There are very few buyers in this price range and I don’t see that changing significantly in the near term.

Inventory of I’On Homes For Sale Slightly Higher in Last 30 Days

Inventory levels have risen slightly since my last report.  Currently, there are 72 homes for sale in I’On.  The chart below reflects current I’On inventory by price range compared to the number of I’On homes sold during the last 9 months.  This further reflects the disappointing results in homes priced above $1M.

I’On Home Buyers Still in Control

The “months of inventory” by price range still reflects a sold buyer’s market.  However, for homes priced below $500K, we are approaching a “balanced market” as there is only 7 months of inventory available in this price range.  Unfortunately for buyers, the supply is rather limited in that price range so there is not going to be an overall jump in sales activity unless more inventory comes on the market in that bracket.

• Below $500K – 7 months of available inventory
• $500K to $750K – 13 months of available inventory
• $750K to $1M – 17 months of available inventory
• Above $1M – 102 months of available inventory

Distressed I’On Home Sales Becoming More Common

I get asked a lot about short sales and bank-owned properties in I’On and what is happening with them.  While they are certainly not yet the norm, the number of homes being contracted for that are in a distressed situation is certainly rising.  For example, of the 15 homes currently under contract in I’On, 7 of them are either potential short sales or bank-owned.  When these homes do close, the sales prices are likely to have a negative impact on the average selling price per square foot.  For example, the average selling price per square foot in I’On is currently $260 but the asking price per square foot for the 7 distressed homes that are under contract is $222.

If I can answer any questions about this 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 0 http://blog.mtpleasantscrealestatesearch.com/2010/04/ion-home-sales-up-sharply-in-2010.html http://blog.mtpleasantscrealestatesearch.com/2010/04/ion-home-sales-up-sharply-in-2010.html#comments Mon, 19 Apr 2010 14:12:47 +0000 chuckavera http://blog.mtpleasantscrealestatesearch.com/?p=724 There is some good news in the I’On real estate market this year.  Through April 19th, the number of homes sold is up sharply from the same period in 2009:

2010 I’On Home Sales – Through 4/19/10

• 14 Homes Sold
• Average Selling Price Per Square Foot – $255.82
• Median Sold Price – $686,250

2009 I’On Home Sales – Through 4/19/09

• 6 Homes Sold
• Average Selling Price Per Square Foot – $258.73
• Median Sold Price – $1,015,000

This is obviously very good news as we head into the heart of the spring selling season. There are a lot more buyers in the market and they are making offers on I’On homes.  This is a welcome change from this time last year when the I’On real estate activity was very slow.

I’On Home Sales Above $1M Continue to be Very Slow

While activity has certainly picked up, there are still reasons to be cautious.  While selling price per square foot is relatively unchanged since last year, the median sold price is down significantly.  This is a direct result of I’On home buyers focusing on homes below $1M. There have been no I’On homes sold over $1M this year and only two in the last nine months, yet roughly 50% of the available inventory in I’On is priced above this number. The chart below shows the number of homes currently on the market along with the number of homes sold in the last 9 months by price range.

It is Still a Buyer’s Market in I’On – In all Price Ranges

As I have mentioned in previous posts, a “balanced” real estate market is generally defined as 6 months of available inventory.  Anything above that represents a buyer’s market and anything below represents a seller’s market.  Based the last 9 months of sales activity, the I’On real estate market clearly favors buyers in all categories:

• Below $500K – 9 months
• $500K to $750K – 13 months
• $750K to $1M – 11 months
• Over $1M – 144 months

If we continue to see an increase in activity through the spring, the months of available inventory should fall and we should move closer to a “balanced” market in a few of the price ranges.  However, it will take quite some time for the $1M+ market to stabilize.  There is just too much inventory to be absorbed in this price range.

If I can answer any questions about this 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.

I’On Home Sales Are Up in 2010

Showing activity has increased significantly in I’On since the first of the year.  As a result, 7 I’On homes went under contract during January and February.  This is a big improvement over 2009 when only two homes went under contract during the same period. In addition, 6 I’On homes closed during January and February, compared to only 2 during the same period last year.  Below is a list of these 6 I’On homes with their sales prices:

• 298 North Shelmore – $500,000
• 116 Civitas – $582,560
• 126 Ionsborough – $735,000
• 51 Frogmore – $741,000
• 40 Montrose – $750,000
• 27 Fairhope – $800,000

I’On Home Buyers Continue to Buy “Value”

While showing activity and sales are both higher, buyers are still focused on value when making their purchase decisions.  For example, of the 11 I’On homes under contract, pending closure, 5 are “distressed” sales, meaning they are either short sales or bank-owned properties.  The average asking price of these 11 homes is $249 per square foot.  This is a significant discount to the average asking price of $302/square foot for the 67 I’On homes currently for sale.  Clearly, buyers are looking for “deals” and in many cases, they are getting them.

A “Balanced” I’On Real Estate Market = 6 Months Supply of Inventory

As I have mentioned in previous posts, a “balanced” real estate market is typically defined as 6 months of available inventory.  Anything higher than 6 months represents a buyers market, resulting in pricing pressure on sellers.  Anything lower than 6 months is a sellers market, resulting in price advantages for sellers.

I’On Homes for Sale Above $1M – Huge Impact on Months of Supply

Based on the last 12 months of sales activity in I’On and a current inventory of 67 homes, we have a 20 month supply of I’On homes for sale.  We are still solidly in a buyers market.  For some price ranges, it is more pronounced than others.  The chart below breaks down the supply of I’On homes for sale by price range.  For every price range, we are still in a buyers market.  However, what is particularly significant is the supply of inventory above $1M – 56 months!!!

The bottom line is that I believe we have a ways to go before we see any positive pricing news for sellers in the I’On real estate market. However, real estate markets can change very quickly.  If interest rates start to increase as most economists believe they will, we could see a surge in sales this year.  I will continue to post updates on the I’On market throughout the year, so stay tuned to this site.

If I can answer any questions about this 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.

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.

Let’s take a look at some of the numbers for 2009:

• 38 I’On Homes Sold – down from 53 in 2008
• Median Price – $787,500, down from $815,000 in 2008
• Average Selling Price Per Square Foot – $265, down from $296 in 2008

Selling Price Per Square Foot in I’On Still Under Pressure

As you might expect, the numbers were down in all categories in 2009, including one metric commonly used by buyers – selling price per square foot.  This number has been impacted fairly significantly in the last two years as depicted in the chart below.  Since peaking in the first half of 2007 at $336 per square foot, the average dropped to $260 in the 2nd half of 2009.

I’On Home Sales Above $1M Fell Short in 2009

While the overall I’On real estate market was down last year, the segment that fared the worst were homes for sale above $1M.  Since the real estate market turned a few years ago, the number of homes selling above $1M has been steadily decreasing.  For example, in 2006, there were 28 homes sold above $1M, representing 44% of the homes sold in I’On.  Last year, there were 9 homes sold above $1M, representing 24% of the homes sold in I’On.  To add further perspective to these numbers, there are currently 29 homes for sale in I’On that are priced above $1M, representing 51% of the available inventory!  For this price range to fare any better in 2010, we will need to see a significant increase in demand.

What Will 2010 Bring to the I’On Real Estate Market?

As we head into 2010, there is some positive news for the I’On real estate market.  There has been a significant reduction in the number of I’On homes for sale in recent months.  At press time, there were 57 homes for sale in I’On, down from 89 homes for sale at the beginning of 2009 – a 36% reduction!  While I expect that number to increase as we move into the spring, it is still a very positive sign.  Also, interest rates remain at historically low levels.  We just need more buyers!!

How I’On Sellers Can Improve Their Odds in 2010

If you are selling your home in this market, it is so important to make sure you stick to the fundamentals – competitive pricing, good curb appeal, and excellent interior staging and condition.  While inventory is down, there is still a lot of competition out there.  Buyers will continue to be very particular when choosing which house to purchase.  Make sure you do everything possible to increase your chance for success.

Please stay tuned to this site for regular updates on the I’On 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.

Inventory of I’On Homes for Sale Down Sharply

A recent increase in activity has resulted in the lowest level of inventory that we have seen in I’On since the middle of 2006.  There are currently 64 homes for sale in I’On, down from 73 homes that were on the market in early October.  Below is a breakdown of available I’On homes by price range:

• Below $750,000 - 15 homes available
• $750K to $1M –  16 homes available
• $1M to $1.25M – 5 homes available
• $1.25M to $1.5M – 20 homes available
• $1.5M to $1.75M – 2 homes available
• Over $1.75M – 6 homes available

I’On Homes Sales Above $1M Still Sluggish

I’On homes for sale that are priced above $1M now represent the largest segment of available inventory in I’On.  Roughly 52% of the homes for sale in I’On are priced above $1M. To put this in perspective, only 23% of the sales in I’On this year (including those currently under contract) were higher than $1M.  Buyers in this price range will likely continue to be very tentative with their purchase dollars until it becomes very clear that the market has bottomed out.

What is the Outlook for I’On Going Forward?

As we move into the winter months, I’On real estate activity will likely slow down.  Inventory levels may decrease further as many sellers typically will take their homes off the market during the holidays and winter season.  All of this is very typical for the winter months.  As we move into February, activity should begin to pick up again, but we will also likely see an increase in available inventory.

I expect that we will continue to see pressure on pricing in the coming months.  While inventory levels are down, there is still a lot of competition for buyers, particularly in the $1M+ range.  So, as I have often said……If you are trying to sell your home, make sure you price it competitively and have it in pristine showing condition.  Buyers continue to be very choosy because they can!

I will provide a more comprehensive update on 2009 activity in my report next month.  In the meantime, if I can help you in any way with your real estate needs, please contact me.

Have a wonderful Holiday Season!!!

]]> http://blog.mtpleasantscrealestatesearch.com/2009/12/ion-real-estate-update-december-3rd.html/feed 0 http://blog.mtpleasantscrealestatesearch.com/2009/10/ion-real-estate-update-october-5th.html http://blog.mtpleasantscrealestatesearch.com/2009/10/ion-real-estate-update-october-5th.html#comments Mon, 05 Oct 2009 20:04:11 +0000 chuckavera http://blog.mtpleasantscrealestatesearch.com/?p=375 Showing activity in the I’On real estate market has improved in the last couple of weeks.  As a result, there have been 2 more homes go under contract in the neighborhood:

• 55 Rialto Road – Asking Price $987,000
• 115 Civitas – Asking Price $599,000

While activity has picked up, there is still very little movement in homes priced above $1M. This is true throughout Mt. Pleasant and other Charleston markets.  More on that a little later…..

Price Range Breakdown of I’On Homes For Sale

In terms of current inventory, there are now 73 homes for sale in I’On.  Below is a breakdown of inventory by price range:

• Below $750,000 – 19 homes available
• $750K to $1M – 20 homes available
• $1M to $1.25M – 6 homes available
• $1.25M to $1.5M – 15 homes available
• $1.5M to $1.75M – 7 homes available
• Over $1.75M – 6 homes available

I’On and Mt. Pleasant Home Sales Above $1M Off Significantly YTD

As you can see from the data above, there are 34 homes for sale in I’On that are priced above $1M.  This represents 47% of the available inventory in the neighborhood.  Demand for homes in this price range are well below what we have experienced in previous years in I’On. Of the 27 homes sold in I’On this year, only 7 homes (or 26%) have sold above $1M. This is the lowest number of homes sold above $1M since 2004 when the neighborhood was just starting to experience home sales in this range.

Elsewhere in Mt. Pleasant, the story is much the same.  So far, there have been 29 homes sell above $1M, representing 4.7% of total sales of single family homes in Mt. Pleasant. Through September last year, there were 91 homes sold above $1M, representing 11.5% of total sales. Currently, there are 147 homes for sale in Mt. Pleasant that are priced at $1M or above.

Key to Success – Make Your Home “Shine” and Price it Competitively

With so many homes for sale in the million dollar price range and so few buyers, it is imperative for sellers to be very realistic when putting their home on the market.  The competition for these buyers is extreme and it is vital that your home is presented in mint condition, both inside and out.  It also needs to be priced aggressively relative to the competition.  The homes that are going under contract in this market meet both of these criteria.

I hope you found this post helpful.  Please feel free to comment below as I am very interested in hearing your feedback and perspective on this market.  If I can answer any questions about your real estate needs, please contact me.