Charleston Real Estate Market Continues Positive Progress

 

 

Charleston Real Estate Market Continues Positive Progress

Year-to-date figures show 12% sales growth, 4% increase in prices

CHARLESTON, SC—(November 13, 2012) According to preliminary data released today by the Charleston Trident Association of REALTORS® (CTAR), 898 homes sold at a median price of $185,112 in October. These figures, representative of all homes sold through the Charleston Trident Multiple Listing Service (CTMLS), show a 34% increase in sales volume and a slight 2% decline in prices when compared to preliminary figures from October 2011.

Year-to-date figures demonstrate continued positive progress for the local real estate market: 8,794 homes have sold at a median price of $187,597 thus far in 2012. At this point last year, 7,827 homes had sold at a median price of $179,925. This year’s figures show 12% growth in sales volume and a healthy, sustainable 4% growth in median price.

At the National Association of REALTORS® (NAR) annual conference in Orlando this week, chief economist Lawrence Yun forecasted that nationwide, both home sales and prices will continue to trend upward over the next two years, predicting that the national median home price will have risen by 15% by 2015.

However, Yun warned of looming inflation, which could double in the coming years. Recent inflation has increased by about 2% per year. 2012 CTAR President Herb Koger agrees with Yun's concerns, saying “Mortgage rates have remained at historic lows for so long, they will have to go back up at some point. The combination of rising home prices, the inevitable increase in mortgage rates and a declining inventory will make it tougher in the coming years for those who are currently renting but hope to buy" Koger said. Strict lending qualifications continue to be an issue for many prospective homeowners, as well. Many credit markets are too tight to accommodate those who want to take advantage of today's prime buying environment.

While the region's overall inventory remains in a healthy decline, there are subsets of the market with more than enough property to go around. "Areas like James Island, West Ashley and parts of Mount Pleasant have overall, very low inventory that at a glance, puts them clearly in seller's market territory. However, when you look at more expensive homes, in the $400,000 and up range, for example, there is significantly more, even double, the rate of inventory" said Koger. As of October 31, 2012 there were 6,030 homes listed as actively for sale with the CTMLS.

“Overall, the Charleston region has performed incredibly well in 2012, and we expect this progress will continue. We live in a highly desirable area which is becoming increasingly attractive to businesses and corporations as well as homeowners” said Koger.

SEPTEMBER ADJUSTMENTPreliminary data reported for September 2012 indicated that 876 homes sold at a median price of $190,000. Adjusted numbers now show 885 homes sold at the same median price.

BERKELEY COUNTY

206 homes sold at a median price of $157,495 in October. Last October, 166 homes sold at a median price of $168,217. The most active area of the County is bordered by Jedburg Road, Highway 17A and College Park, where 68 transactions closed at a median price of $150,620. Year-to-date, the County’s sales volume has increased a healthy 3% and prices 4%. Thus far in 2012, 1,898 homes have sold at a median price of $163,443 in Berkeley County.

CHARLESTON COUNTY

489 homes sold in Charleston County in October, at a median price of $225,000. This represents an increase of more than 100 sales when compared to last October, when 346 homes sold at a price of $227,000. Outside of the County’s largest geographic area of Mount Pleasant, the most active areas were West Ashley (outside of I-526) and James Island. 61 homes sold at a median price of $205,475 in the outermost part of West Ashley, while 54 sales on James Island resulted in a median price of $223,250. Year-to-date, the County is leading the local market recovery, with a 19% increase in sales volume and a 2% increase in median price. Nearly 5,000 homes have sold in Charleston County in 2012, at a median price of $225,000.

DORCHESTER COUNTY

173 homes sold in Dorchester County at a median price of $167,500 in October. Last October, 140 homes sold at a median price of $155,950. The most active area of Dorchester County in October was the Summerville/Ridgeville area, where 71 sales resulted in a median price of $201,575. Year-to-date, Dorchester County is showing stability, with 5% and 6% increases in sales and median price, respectively. 1,596 homes have sold at a median price of $167,361 in 2012.

 

With approximately 3,600 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

RESIDENTIAL REAL ESTATE MARKET BEGINS TO SHOW SIGNS OF NORMAL ACTIVITY

RESIDENTIAL REAL ESTATE MARKET BEGINS TO SHOW SIGNS OF NORMAL ACTIVITY

CHARLESTON, SC—(September 10, 2010) According to preliminary data released by the Charleston Trident Association of REALTORS® (CTAR), 681 homes sold in the region at a median price of $199,055 in August. This reflects a 3% increase in sales and a 6% jump in prices when compared to August 2009, when 658 homes sold at a median price of $187,840.

Year to date, 5,624 homes have sold, compared to the 4,685 that were reported at this point in 2009. The year-to-date median sale price is a healthy 2% ahead of this point last year—$183,982 as of August 2009, and $188,207 thus far in 2010.

“Sales volume is up 20% year-to-date. While the gain is no doubt due in part to the recently expired Home Buyer Tax Credit, the August figures suggest that stability is returning to the market after the post Tax Credit drop-off. We’re slowly moving back toward more normalized market conditions, as consumer confidence is being restored” said Jeremy Willits, 2010 CTAR President.

As of August 31, 2010 there were 9,552 properties listed as actively for sale in the Charleston Trident Multiple Listing Service (MLS). At the end of last August, inventory was comparable, with 9,806 properties actively for sale.

BERKELEY COUNTY
149 sales in Berkeley County at a median price of $177,990 reflect a 19% increase in sales and a reasonable 3% increase in prices compared to August 2009.

CHARLESTON COUNTY
Sales in Charleston County increased 15% compared to the same month last year and prices increased 5%. There were 370 sales at a median price of $253,145.

DORCHESTER COUNTY
In August, 133 residential properties changed hands at a median price of $165,000—a 20% decrease in sales and a 3% decrease in price from August 2009.

JULY 2010 ADJUSTMENT
Preliminary numbers reported for July 2010 indicated 643 homes sold at a median price of $196,573. Adjusted numbers now show 671 sales at $196,540.

With nearly 4,000 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

‘BORROWED’ CLOSINGS LEAD TO FEWER SALES IN JULY

CHARLESTON, SC—(August 10, 2010) Preliminary figures released by the Charleston Trident Association of REALTORS® (CTAR) show that 643 sales closed in July at a median price of $196,573. Comparatively, July 2009 saw 796 closings with a median price of $181,889. This July’s figures represent a year-over-year difference of 19% fewer sales and an 8% increase in prices.

As of July 30, 2010, there were 9,737 homes listed as actively for sale with the Charleston Trident Multiple Listing Service.

BORROWED CLOSINGS
“July’s closings were down more than usual, but that’s likely because the tax credit deadline was June 30, and the extension to close wasn’t granted until the final days of June. Buyers who would have likely closed in July rushed to close in June in order to take advantage of the tax credit” said Jeremy Willits, 2010 President of CTAR.

“The tax credit allowed us to borrow closings from future months,” said Willits. “We normally see the market slow down around August or September, but this year, it happened a little earlier than usual.” The homebuyer tax credit encouraged buyers who may have waited until the typical buying season of June, July and August to place contracts by the April 30 tax credit deadline, resulting in those closings and the arrival of the busy season coming several months early.

WHAT’S MOVING
The jump in median price could be attributed to increased movement in the $300-399,000 price range, which was unusually active during July. In previous months, most sales activity has been concentrated in the $140,000 and $200,000 ranges.

“The increase in activity within the $300,000 and above range explains the sharp jump in prices. Unless the activity in this range keeps up, I would expect that we’ll see prices return to the mid-$180 range that’s been typical for 2010.” said Willits.

Another factor driving the price increase could be increased activity in Charleston’s resort communities. Kiawah and Seabrook Islands have seen increases in both sales volume and prices, while median prices in Wild Dunes tracked close to $1 million in July, when they’ve been closer to the $600,000 range for most of 2010.

BERKELEY COUNTY
Berkeley County saw 147 homes sell at a median price of $165,000 in July. This represents a 23% decline in sales and a 12% increase in prices, when compared to July 2009. Most of the County’s activity was in the Goose Creek/Moncks Corner area, as well as the area between Jedburg Road and Highway 17-A.

CHARLESTON COUNTY
Sales in Charleston County fared better than either of the other counties, with 341 sales at a median price of $250,000. Compared to July 2009, the County saw a 16% decrease in sales volume but a 9% increase in median price. The most active areas of Charleston County were Mount Pleasant South of Highway 41 and James Island.

DORCHESTER COUNTY
131 sales in Dorchester County show a 23% decline from July 2009, when 170 homes changed hands. Prices remained stable, but reflected the smallest increase among the three counties, which could be attributed to the high number of foreclosures in the County. The median price for homes sold in July was $169,829, up 2% from July 2009’s $166,837.
The most active area of the county was in the Summerville/Ridgeville area.

JUNE 2010 ADJUSTMENT
Preliminary numbers reported in June 2010 indicated 1,022 homes sold at a median price of $185,612. Adjusted numbers now show 1,072 sales at the same median price.

With nearly 4,000 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.