Welcome to Charleston Real Estate Blog Sign in | Help

January sales report

The January sales results are in and as promised, they are broken down by single family homes and condos/town homes because I believe the results will be more meaningful to you.

Let's look at the numbers and then analyze.

single family

 

Date        Sales          Cur        Mo Inv         Date       Sales       Cur      Mo Inv     Y/Y Sales     Y/Y Inv

                                  Inv                                                          Inv

 

01/06           783          3697           4.72         01/07          565       5451         9.65          -27.8%        +47.4 

02/06           855          4000           4.68         02/07

03/06         1170          4300           3.68         03/07

04/06           963          4654           4.83         04/07

05/06         1185          4845           4.09         05/07

06/06         1312          5156           3.93         06/07

07/06         1016          5486           5.40         07/07

08/06         1039          5691           5.48         08/07

09/06         1091          5758           5.28         09/07

10/06           833          5815           6.98         10/07

11/06           875          5658           6.47         11/07

12/06           837          5406           6.46         12/07

 

condos and town homes

 

Date        Sales          Cur        Mo Inv         Date       Sales       Cur      Mo Inv     Y/Y Sales     Y/Y Inv

                                  Inv                                                          Inv

 

01/06           331          1159           3.50         01/07          126       2170       17.22             -61.9        +87.2 

02/06           276          1628           5.90         02/07

03/06           374          1720           4.60         03/07

04/06           434          1685           3.88         04/07

05/06           405          1883           4.65         05/07

06/06           329          1989           6.05         06/07

07/06           343          2141           6.26         07/07

08/06           312          2160           6.92         08/07

09/06           282          2246           7.96         09/07

10/06           264          2407           9.12         10/07

11/06           206          2348         11.40         11/07

12/06           239          2202           9.21         12/07

 

The "Current Inventory" column reflects the number of active listings on the market on the 16th day of each Month. The "Months of Inventory" column is equal to the "Current Inventory" divided by the "Monthly Sales". This reflects how many months it would take to sell out of inventory at the current month’s rate of sale.

.

Let's take a look at pricing on a year vs. year basis:

.

single family

.

Date        Sales          Avg List              Avg Sale            DOM          Median          %LP/SP

01/06           783          $347,444             $338,307                 57          $206,531          97.37%

01/07           567          $354,457             $341,101                 77          $225,000          96.23%

Active         5770          $564,866             N/A                       116          $315,450               N/A

 

condos and town homes

 

Date        Sales          Avg List              Avg Sale            DOM          Median          %LP/SP

01/06           331          $257,562             $253,632                 23          $173,000          98.47%

01/07           126          $241,790             $236,710                 87          $181,750          97.90%

Active         2316          $348,543             N/A                       130          $224,950               N/A

First, I think it is helpful to break out the single family results and as you can see, the market for single family is better (but not as good as I'd like to see it). January and February are the 2 slowest months in the year but sales are off significantly from the same period a year ago. Prices are higher for single family on both an average and median basis. Condos are off a little on average but up a little on median.

 

The most interesting thing is to look at what is active today and the prices compared to what has sold. They are significantly higher than the solds and unless the statistics are being skewed by a lot of really really expensive properties, it makes no sense. Wait a sec, I'm going to double check...

 

ok, I'm back...and the numbers above are correct, so now my best guess is that a lot of lower and middle priced properties have been selling and the high end is a bit sluggish. The high end of the Charleston real estate market is dependent upon relocation from other parts of the country and if homes elsewhere aren't selling, purchases and moves may be put off. Additionally, another aspect of the Charleston market is vacation and second homes which are more discretionary and possibly decisions to purchase these homes may be affected by worry about the housing market so maybe that is why inventory at the high end is so high.

 

Let's take a look at condos and townhomes, certainly a drag on the market. A large number of condo conversions and new construction has simply not been absorbed. These were being purchased by residents as well as speculator/investors and since at least 50% of the investor market has dried up, sales are off significantly. I hear that many of the investor owned units are being put on the rental market rather than being "flipped" as in the past. That's good news for rental rates but since mortgage rates are still historically low, it still makes sense to purchase if you can.

 

As to single family, I've been talking about it for a while and sellers have to understand. You are competing with a lot of other property and it doesn't matter what you think your home is worth, you have to price to market in order to sell. I've seen homes sell within 45 or 60 days and I've seen home sitting unsold for 6 months to a year. If you want to sell and not just have a sign in your yard, you must price it to sell, not sit. The good news is that even if you don't get absolute top dollar for your home, you will be able to purchase more house for less money than before so it really is a wash financially. It's not about ego, it's about selling and moving on.

 

In conclusion, I'm very glad to have taken the effort to break out single family from condos and town homes because it reveals the data even more clearly. While sales and inventory in both classifications aren't great, you can clearly see that single family is in better condition.

Published Friday, February 02, 2007 2:27 PM by Howard Arnoff

Comments

# re: January sales report

your comments are also true of kiawah, which I guess is (sort of) a suburb of charleton....the lower end (less than a million) seems to be selling well...the high end is quiet...thoughts?

Monday, February 05, 2007 10:28 PM by john

# re: January sales report

John, thanks for stopping by and commenting. Regarding Kiawah and higher priced property, two things could be happening, first, similarly to Hilton Head, in many cases these are vacation or second homes and that is a much more discretionary market. Unit sales of Hilton Head real estate has been down significantly in the past year so it makes sense that high end Kiawah real estate would be similarly down. Another factor could be that potential buyers are having trouble selling their homes in other parts of the country and therefore are postponing their purchase here.

Tuesday, February 06, 2007 12:19 PM by Howard Arnoff
New Comments to this post are disabled