The number of sales in 2008 were similar to 2001 - 2002 levels, but with double the listing inventory.  The good news of 2008 was that inventory totals did decrease down to 22,082 properties (a 20% decrease).  Average 109 days on the market was extended from last years average at 79 days. The not so good news is that active listings have currently been on the market for an average of 198 days. 

The good news of 2009 is that overall MLS inventory continued to decline, in fact by 14.5% from  last year. We still have 15 months of inventory available so we still need to continue the trend of reduction to continue to recovery and a balanced market. Closed properties numbered 8204 which is down by 10% from last year. Average sales price was $252,777 which is down 15% from last year.  By comparing where most of the sales were, we believe  has less to do with depreciation than it does with lower priced listings selling thanks to foreclosures, short sales and  buyers who are more conservative in their purchases.  This is also demonstrated by a list to sale ratio of 94%, meaning sellers on average received 94% of the list price they were asking for. In 2008, the list to sale ratio was 95%. Average days on market was 115 days for sold properties up slightly from last years 103 days on market.

When we narrow the statistics and look only at single family homes in Charleston, Berkeley and Dorchester counties, we made a lot of progress to end down around 6% in number of transactions and 9% in price.  There were some pockets of areas that actually saw some gains in the number of transactions (MLS areas 11,13,26,27,43,44,61,62,64,and 68).  By narrowing the stats down, notice that the single family home market is not as bad as the entire market, meaning that condos and townhomes are dragging down the market.

For 2009, our prediction is that it will still be a good year for real estate in the Charleston market as buyers take advantage of LOW interest rates and some amazing deals being offered.   However, those low rates won´t last long. The Fed has already announced that the measures they have been taking to keep rates low will come to an end as of March 30, 2010.  Where were rates before the Fed got involved? They were hovering just under 7%. We believe there will be a slow climb back to the 6 ½ ? 7% range. We believed this uptick would start in late March. However, after seeing rates rise almost ½ point in the last month of 2009, this may occur sooner. We believe that the first half of 2010 will continue to see large numbers of buyers committing to purchasing a home. With rates low and the home buyers tax credit still in effect, it will be hard for some not to jump into the market to take advantage of its benefits. This 1st time home buyer tax credit opportunity will end on April 30, 2010. Buyers taking advantage of the tax credit must have their property under contract by this date and  must close on the property  by June 30, 2010. However, as rates begin to rise and the tax credit disappears, we believe buyer demand will deteriorate.   

The second half of the year will not be anywhere near as strong as the first half. Distressed properties will be part of the real estate landscape for the next several years. We think 2010 will be especially challenging when it comes to this point. With unemployment still with us and more and more houses ?upside down,´ we see an increase in distressed sales at every price point.  As far as home prices, this is the toughest to predict. Unlike many, we do not believe we are finished with the downward pressure on prices. In most price points, inventory is still strong and with an upcoming "shadow inventory" of forecloses nationally estimated at over 1.5 million properties (at all different price points) about to hit the market across the nation. Price may still fall another 5-10%.  Though demand will be strong for the first half of 2010, it may be demeaned by the surge of properties coming to the market, a high percentage of which will be at discounted distressed properties. 

If you or someone you know would like a breakdown of a particularly area or neighborhood, or just advice you can trust, please email us at info@CharlestonRelocationExperts.com.  Experience does count.  Let it work for you or someone you know that is thinking about buying or selling real estate.  Please call us at 843-849-5217 for a FREE no obligation consultation.  Please forward this information to anyone that might benefit. Wishing you a blessed 2010!

Sincerely,
The CRE Team