It was an interesting year in the I’On real estate market. While there were many challenges in the 2007 market, it was not all “doom and gloom” as the national press would have you believe. First, it’s important to understand that all real estate is local. Just because condos are selling for 50 cents on the dollar in Miami doesn’t mean the same thing is happening in Mt. Pleasant, SC. Even within the Mt. Pleasant community, homes are selling faster in some neighborhoods than they are in others. So, how did I’On’s market fare in 2007 when compared to 2006? Here are some stats followed by my opinion of what it all means….
There were 57 homes sold in 2007 at an average price of $935,000. This is down from 2006 during which 63 homes were sold at an average price of $1,113,000. In addition, the median price was down from $950,000 in 2006 to $830,000 in 2007 and the average selling price per square foot for the year was down to $319 from $331 in 2006. Finally, the average days on market for the homes sold in 2007 was 159, up from 128.
The numbers show that I’On was not immune to the downturn in the national market. None of the key indicators had a positive year, including pricing. In fact, 2007 was the first year in I’On’s history that the average selling price and average price per square foot actually fell from the previous year. This was not unexpected as we started to transition into a buyer’s market near the end of 2005 when inventories started to rise. Clearly the “mortgage crisis” of this past summer helped to accelerate the slow down, but it was in full gear even before those problems surfaced.
Believe it or not, there are some positive things happening right now in the market. First, there are currently 82 homes on the market in I’On. While still high, this is down from the peak of 94 that we had available in May. In addition, lots of homes are being sold, especially recently. Since November 20th, there have been 7 homes go under contract, probably the strongest 40 day period of the year. Finally, interest rates remain at historically low levels.
The market will come back. It always does. But it will take some time. Inventory levels are still too high and many buyers are sitting on the fence waiting for the “bottom”. Others are just confused with all the choices available to them. Hopefully the housing market will stabilize soon which will bring in more buyers, resulting in a much more normal market! I’m counting on it!
Please watch this page for more information throughout the year. I will be keeping you updated on the I’On market as well as providing you interesting real estate tidbits on the Mt. Pleasant and Lowcountry markets. Stay tuned!