The spring of the year always brings a surge of new activity to the Mount Pleasant real estate market so it is no surprise when the statistics show that more homes are selling. However, this spring is shaping up to be very special for Mount Pleasant home sellers!
Mount Pleasant Home Sales Up Significantly in March and April
During March and April, there have been 306 Single Family homes go under contract in Mt. Pleasant. This is a 49% increase over the same period last year!! In the condo/townhome market, the news is even better…..109 condos/townhomes have gone under contract during the last two months. This is a 73% increase over the same period last year!! The recovery of the condo/townhome market has been lagging the single family home market for some time….This could be a sign that the recovery for this segment is finally underway.
Months of Inventory – a “True Picture” of the Market…..
While home sales are up this spring, one of the best ways to measure the current state of the Mount Pleasant real estate market is to review inventory levels, specifically “months of inventory”. This gives us a good idea of where we can expect prices to go in the short term.
So, what does “months of inventory” really mean? If we take a look at historical real estate sales patterns (typically the previous 12 months of sales) and compare that to the current number of homes on the market, we can then calculate the “months of inventory”. For example, if 36 homes have sold in the last 12 months and we currently have 24 being offered for sale, then we have 8 months of inventory. It will take 8 months to deplete the inventory we currently have, assuming we have the same rate of sales going forward that we have had for the last 12 months.
The chart below shows the “months of inventory” for the Mount Pleasant Single Family home market, broken down by price range…..
Generally, 6 months of inventory represents a fairly balanced real estate market, one that doesn’t give a significant advantage to the buyer or seller. In a balanced market, prices generally remain stable, with little fluctuation. While the overall “months of inventory” for single family homes is slightly above 6 months, certain price ranges are faring much better and others are faring much worse.
Mount Pleasant Home Sales Above $500K – More Price Pressure
As you can see from the chart, the months of inventory number rises significantly as you move up the price scale. The result is that it is much harder to sell a home in the higher price ranges with the inventory levels well above 6 months. For example, with 32 months of inventory for homes priced above $1M, we can typically expect only one home in this price range will sell every 2.6 months!!
With this much inventory, there will be a lot of pressure on sellers to reduce their prices in order to snag the few buyers that are out there in that price point!! There is some good news however…..NOW is the time to sell as there are more buyers in the market right now than at any other time during the year!!
Please give us a call if you have any questions about this post or need other specifics about the Mount Pleasant real estate market. If you are thinking of selling, please contact us to get a market analysis for your home and to learn more about our marketing programs.
Paige and I have been two of Mount Pleasant’s top selling realtors during the past 10 years. We have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold. Finally, please feel free to check out our web site….We have a lot of great information on the Mount Pleasant market, including great pages on various neighborhoods. Have a great week and we hope that you continue to enjoy all that Mount Pleasant has to offer!