Mt. Pleasant SC Real Estate » Mt Pleasant News

I’On Home Sales Up 42% in 1st Half – Pricing Still Lags

chuckavera — Fri, 09 Jul 2010 18:11:24 +0000

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.

Mount Pleasant 4th of July Fireworks, 2010 – Where Will You Be?

chuckavera — Thu, 01 Jul 2010 03:20:55 +0000

Where will you spend this Sunday with your family and friends?

Mount Pleasant, Isle of Palms, and Sullivans Island offer great locations to view 4th of July fireworks. Here are some local East Cooper favorites:

Patriot’s Point 14th Annual 4th of July Blast!

Enjoy live entertainment from Katbandoo from 7:00 – 9:00pm followed by the largest fireworks display in the Lowcountry, launched off the flight deck of the USS Yorktown at 9:15pm. Gates open at 4:00pm with $5 discounted admission to the museum (fireworks are free). Sandwiches, snacks, water, and soda will also be available for purchase by local vendors.

Old Village Pitt Street Bridge

Bring your chairs, blankets, picnic baskets, and arrive early! If you can’t decide where to go this 4th of July, the Pitt Street Bridge in the Old Village may be the spot for you. From this historic landmark, Mount Pleasant residents can watch firework displays from Folly Beach to Isle of Palms to Mount Pleasant!

Isle of Palms and Sullivans Island

There is something very Charleston about spending the day at the beach, enjoying dinner at one of the many island restaurants, and capping off the evening with a spectacular beach front fireworks display. 4th of July fireworks begin just after dark on Front Beach (Isle of Palms) and in Town Park (Sullivans Island).

Daniel Island 4th of July Celebrations (July 2 – July 3)

Festivities begin Friday with an island-wide block party and FREE concert featuring Plane Jane. A pancake breakfast will take place Saturday morning at the Family Circle Tennis Center to benefit the Daniel Island School, followed by a parade and party at the Pierce Park Pool and Pavilion.

For more information on Mt Pleasant, SC and the surrounding areas, contact your Mount Pleasant Expert Realtors at the Chuck Avera Team. Ask for your free Mount Pleasant Relocation Guide or Neighborhood Sold Report.

Has the Mt. Pleasant Real Estate Market Turned Around?

chuckavera — Wed, 02 Jun 2010 19:25:43 +0000

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.

Mt. Pleasant Home Sales Gain Traction, But Buyers Market Still On

chuckavera — Mon, 19 Apr 2010 17:25:11 +0000

Through April 19th, real estate activity for Mt. Pleasant single family homes is up significantly from the same period in 2009. While pricing has dipped slightly, the number of homes sold is up 20% in 2010. This is welcome good news for sellers in our market as we move into the busy spring season.

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.

I’On Home Sales Up Sharply in 2010

chuckavera — Mon, 19 Apr 2010 14:12:47 +0000

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.

Mt. Pleasant Real Estate Update – March 8th

chuckavera — Mon, 08 Mar 2010 21:01:23 +0000

Finally some good news! Through the first two months of 2010, Mt. Pleasant homes sold at a faster pace than the same period in 2009. A total of 147 homes sold in Mt. Pleasant in January and February, up from 115 sales in 2009. Single family home sales are up 31% while sales of condos are up 19%. Clearly, there are more buyers are in the market right now than we had last year. This is a very positive sign as we head into the traditional “spring selling season”.

Mt. Pleasant Home Sales in the $500K – $750K Range are up 42%

It is encouraging to note that the highest year-over-year growth rate was for homes sold in the $500K to $750K price range. Home sales in this price range were up 42% over 2009. This could be a sign that more high-end buyers are re-entering the market. However, Mt. Pleasant home sales above $1M were flat during the first two months of the year. This is the price range that is feeling the most impact from this buyer’s market. In fact, since my last report on January 20th, the months of available inventory for homes priced above $1M has risen to 66 months from 63 months.

What Was the Impact on Mt. Pleasant Home Prices in the First 2 Months?

The pressure on Mt. Pleasant home sellers to reduce prices continued in the first two months. This is supported by the fact that MLS price reductions outnumbered price increases by about 12 to 1 during the period. However, there was some positive news for sellers. The median selling price obtained for the 147 homes sold in the first two months was up 8.3% to $325,000. No matter how you look at the numbers, this is a good sign for sellers that the trend may be starting to change. As we get more sales data during the next few months, we will be able to determine if this is a real trend or just a “blip”.

If you have any questions about this post or if you have any real estate needs such as buying or selling your home, please contact us. All of us at The Chuck Avera Team will be happy to help you in any we can.

I’On Real Estate Market Update – February 27th

chuckavera — Sat, 27 Feb 2010 18:45:08 +0000

It seems that everywhere I go, people are asking me if the I’On real estate market has “turned around”. Well, if you measure a “turnaround” strictly based on increased showing activity and number of sales, we are starting to see some progress. But I believe most people really want to know when there is going to be a “turnaround” in prices. That is going to take some time. In this post, I will try to put this in perspective for you.

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.

Belle Hall Plantation – 2009 Review

chuckavera — Wed, 10 Feb 2010 19:07:50 +0000

Although the Belle Hall real estate market continued to feel the effects of the economy, it did fare better than many other Mount Pleasant neighborhoods in 2009.

Belle Hall Home Sales Down Again in 2009

There were 54 homes sold in all phases of Belle Hall last year. This is down slightly from the 58 homes sold in 2008, but significantly off of the 2005 peak when 87 homes sold in the neighborhood. There continued to be pressure on pricing, particularly in the higher price ranges. The average selling price per square foot in 2009 was $177, down from $181 in 2008. This is down 13% from the peak in 2006 when the price per square foot was $203.

Belle Hall Pricing Faring Better than Most Mount Pleasant Neighborhoods

While price per square foot is down 13% from its peak, Belle Hall has fared much better than other Mount Pleasant neighborhoods during this same period:

Hamlin Plantation - Down 22%
Charleston National - Down 22%
I’On – Down 20%
Dunes West – Down 19%
Brickyard - Down 19%
Park West – Down 18%

This speaks volumes about the continued popularity of Belle Hall Plantation with real estate buyers. With a great location close to I-526 and shopping and a large selection of homes in every price range, Belle Hall has an advantage over many Mount Pleasant neighborhoods in terms of the flexibility it offers.

Belle Hall Homes For Sale Continues to Trend Down

The pricing in Belle Hall should feel less pressure in 2010 as the number of Belle Hall homes for sale is now down to 36. This is significantly below the peak of 68 homes for sale in April, 2008. 19 of these homes are located in Hibben (22, including pendings) leaving only 17 homes for sale in all other sections of Belle Hall. This is good news for sellers as we head into the traditional spring busy season.

If you have any questions about this post, please contact us. We will be happy to assist you in any way we can. Also, if you are thinking of selling your Belle Hall home this year, please contact us. Our strong marketing presence and understanding of this market will give you an advantage when selling your home.

Mount Pleasant Condo Market – Showing Signs of Life?

chuckavera — Fri, 05 Feb 2010 16:40:20 +0000

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 Real Estate – Latest Trends for Vacant Lot Sales

chuckavera — Wed, 27 Jan 2010 16:13:31 +0000

While certain price ranges of the Mount Pleasant housing market (below $500,000) seem poised to stabilize in 2010, the scenario for vacant lot sales is much different. This segment of the Mount Pleasant real estate market has been hit very hard in recent years. After peaking in 2005 with 501 lot sales, there were only 75 lots sold in 2009.

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.