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 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.

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 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.

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.

Below are 10 tips that can help Mt. Pleasant sellers boost the curb appeal of their home:

1. Get the home pressure washed and re-paint any peeling trim or exterior paint.
2. Trim shrubs and trees in the front yard and make sure the grass is cut and neatly trimmed at all times.  During the fall and spring, make sure that leaves are removed from the yard.  Also, put away lawn tools, trash cans, hoses, etc.
3. To make your home look even more high end and well kept, weed all flower beds and install a fresh layer of pine straw or mulch.
4. When visible from the street, replace or repair that tired looking garage door.  Also, make sure your new garage door is in tune with the home’s architectural style.
5. Define the approach to your home….Add a stone walkway or path leading to the house. Another option is to define it with shrubs or flowers.
6. Add some landscape lighting leading up to the front door.  In addition to “setting the mood”, properly placed lighting can draw the buyer in.  Make sure that all exterior lighting is turned on at night.
7. If you have a front porch, dress it up with plants and flowers.  Also, make sure that any porch furniture has a clean and fresh look. Consider adding new cushions.  This can immediately make the yard more inviting and comfortable.
8. Replace exterior lighting fixtures and front door hardware if necessary.  The elements in the Lowcountry are not usually very kind to exterior accessories.
9. If your driveway is cracked, consider repairing it or having it resurfaced.
10. Make sure that your mailbox is attractive.  If it’s old and falling apart, install a new one.

In summary, first impressions are critical in this market!  It all starts with an exterior that invites buyers in.  If the exterior of the home needs a lot of work, buyers will assume that the interior is no different.  Don’t let them “pass” on your home before even coming inside!

I encourage you to share any additional thoughts you may have on enhancing curb appeal by commenting below.  In addition, please contact me if you have any questions on this topic or have a real estate need that I can help you with.