After a very slow start in the first quarter of  2011, the I’On real estate market has finally “come alive” this spring.  Since my last report in late March, there have been 12 additional homes sold in I’On, bringing the total to 19 I’On homes sold year-to-date.  We are still slightly behind the pace of sales we experienced in 2010, but there continues to be significantly more activity in the $1M+ price range than we have seen in quite some time….More on that later.  In addition, there are currently 14 I’On homes that are under contract, but not yet closed.

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The 2011 I’On real estate market is off to a slower start than we experienced at the beginning of 2010.  So far this year, 7 I’On homes have sold at an average price per square foot of $227. Below is a list of these homes with their final selling price:

• 27 Hopetown Road – $1,290,000
• 218 N. Shelmore Blvd. – $1,210,000
• 39 Robert Mills Circle – $1,200,000
• 178 N. Shelmore Blvd. – $1,015,000
• 36 Montrose Road – $835,000
• 68 Sowell Street – $745,000
• 119 Civitas Street – $470,000

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While the I’On real estate market continued to be challenged in 2010, there was some improvement during the year.  In this post, I will put some perspective on the 2010 market and give you my thoughts on what 2011 may bring for I’On home sales.

I’On Real Estate Market – 2010 Recap

There was a 34% increase in the number of I’On homes sold in 2010!  A total of 51 homes sold in I’On last year compared to only 38 in 2009. This increase in activity also contributed to a steady reduction of available inventory throughout the 2nd half of the year.  After hitting a high of 76 I’On homes for sale in May, the number of I’On homes for sale has been steadily decreasing and we now have only 49 homes for sale in I’On.

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After a big surge in sales activity in October and early November, activity has fallen off significantly in the last 30 days. This is not unexpected as we move into the holiday season and the winter months.  One home has gone under contract since my last report on November 17th:

• 68 Sowell Street – $799,000

In addition, two homes have closed in I’On since my last report.  Below is a list of these properties and their selling prices:

• 172 Civitas Street – $475,000 – $195/square foot
• 61 Eastlake Road – $490,000 – $255/square foot

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Since my last report to you on October 11th, the I’On real estate market has been very active.  There have been 9 I’On homes go under contract in the last 36 days and 7 of these homes have gone under contract in November alone!  Below is a list of these homes with their asking prices:

• 27 Hopetown – $1,746,000
• 39 Robert Mills – $1,350,000
• 54 Saturday Road – $1,095,000
• 36 Montrose – $995,000
• 130 North Shelmore – $649,000
• 162 North Shelmore – $550,000
• 61 Eastlake Road – $539,000
• 36 Sowell Street – $525,000
• 172 Civitas – $525,000

This surge in activity has reduced the active number of I’On homes for sale to 56.  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:

• 18 Hopetown Road – $1,400,000 – $341/square foot
• 122 West Shipyard – $1,000,000 – $132/square foot - this transaction was a short sale
• 48 Montrose Road – $950,000 – $242/square foot
• 249 Ponsbury Road – $680,000 – $245/square foot
• 302 North Shelmore – $485,000 – $254/square foot

I have added a new feature to the I’On page on my website that provides you with a list of all I’On home sales for the last several months. Please feel free to bookmark this page and refer to it as needed and also share it with any interested party.  I will keep this updated on a weekly basis. (more…)

Not unexpectedly, sales activity in I’On slowed down in September.  This is typical as families were getting their children back in school and settling back in from summer vacations. However, we did have 3 I’On homes go under contract since my last report on September 10th. (more…)

While it would have been hard to duplicate July’s performance in terms of $1M+ homes going under contract, there was still a lot of activity in the I’On real estate market since my last report on August 5th.  And that activity was spread over a broad range of pricing.   (more…)

After months and months of floundering, the I’On real estate market above $1M finally showed some signs of life in July.  This is very welcome news for I’On home sellers in this price range as activity has been very slow for some time.  Four homes that were priced above $1M went under contract during the month. Below is a list of those homes with their asking prices.

• 38 Hopetown – $1,099,000
• 18 Frogmore – $1,295,000
• 50 Fernandina – $1,479,000
• 63 Robert Mills – $1,695,000

In addition, two homes closed in July above $1M.  They are listed below with their selling prices:

• 19 Joggling – $1,100,000 ($269/square foot)
• 226 N. Shelmore – $1,145,000 ($237/square foot)

Reductions in I’On Home Inventory Key to a “Balanced” Market

While the recent increase in activity has resulted in a significant decrease in the number of months of available inventory for homes above $1M in I’On, we still have a long way to go before (more…)

The I’On real estate market was certainly much more active in the first half of 2010 compared to the same period last year.  The result was an increase of 42% in the number of homes sold.  Unfortunately for I’On home sellers, this increase in sales activity did not translate into an increase in pricing.  On average, pricing was down 9% during the first half of the year compared to 2009:

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.

Every day, people ask me if the Mt. Pleasant real estate market has turned around.  Well, the answer is yes AND no.  Let me explain……

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.