Charleston market report - February
The Charleston market report for February sales are available and the trend for Charleston real estate remains the same. Please note that February is traditionally a very slow month for closings since few buyers are looking for homes during the last 5 weeks of the year so fewer homes would close during February. March is the traditional start of the real estate season and that happens to coincide with a noticible decline last year as higher gas prices and higher interest rates combined to slow sales. Once again, condos and townhomes are reported separately from single family homes.
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 02/07 133 2339 17.59 -51.8% +43.7%
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
Single Family Homes
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 02/07 673 5666 8.42 -21.3% +41.6%
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
Year over year pricing comparisons
Condos and Townhomes
Date Avg List Avg Sale DOM Median %LP/SP
02/06 $251,144 $246,102 64 $167,275 97.99%
02/07 $241,753 $233,347 110 $229,695 96.52%
Single Family Homes
Date Avg List Avg Sale DOM Median %LP/SP
02/06 $297,849 $290,944 63 $208,930 97.68%
02/07 $303,901 $293,857 97 $218,269 96.69%
Analysis:
As you can clearly see, the condo and townhome market continues to slow much more dramatically than single family homes. Inventory is at an almost 18 month supply (and it actually could be worse because all the available listings are generally not put into the MLS for new construction or conversions). Pricing is slightly lower on an average basis but higher on a median basis. Time on the market increased 71%.
As to single family, inventory seems to finally be holding steady in the low 5,000's (inventory is still high, approximately double what we experienced the previous few years) and prices are holding up on both an average and median basis. Days on market increased by 53%.
An interesting number that clearly shows that we are in a buyers market is the sold price compared to listing price. A full 1% less than a year previously is evident in both condos and single family homes. This indicates buyers are offering less than previously and the sellers are accepting the offers. By the way, the listing price is the price at the time of contract and may have been reduced from the original listing price.
As to the forecast for spring 07, activity seems to be picking up on my website, telephone, inquiries, showings and buyers making appointments to view property. The next few months are very important and March 06 is when I first noticed business slipping a bit so the comparisons should be a little easier with less less severe percentage changes.
The challenge for the Charleston housing market (and the country for that matter) will be dealing with tighter lending standards thus reducing the available number of buyers who only qualified for a mortgage with some of the more exotic loans previously offered. This will also affect the investor market and it will also be important to watch inventory trends.
Finally, we have been comparing record years in real estate sales for both new construction and preowned homes to the more ordinary times of today. A 20% decline from the record numbers previously achieved is still a very respectable number of sales. The media has certainly frightened potential buyers with their relentless reporting and their basic slant toward the most dramatic news. It should be a most interesting spring market in Charleston, count on me to keep you up with the current market trends.