Charleston Real Estate Blog

Charleston South Carolina real estate market report, May 2007

For May 2007, I have once again reformatted the information presented in the Charleston South Carolina real estate market report to make it both easier to read and see the market trends and comparisons. Please note that the Charleston MLS has added a small bit of territory to their reporting which would make these statistics going back 17 months slightly different than the numbers presented in previous reports but the numbers are not that significantly different to be concerned with. The trend remains the same, here are the numbers, my comments will follow.

Unit sales and inventory

Single family homes

Condos and townhomes

The "Current Inventory" (inv) column reflects the number of active listings on the market on the 16th day of each Month. The "Months of Inventory" (mo) 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.

Average and Median Prices

Single family homes

Condos and townhomes

Year to date price comparisons

Single family homes

Condos and townhomes

The %LP/SP refers to the difference between the list price and the selling price, DOM refers to Days on Market.

As I said before, the trend remains the same, condos and townhomes are in much worse shape than single family homes from both an inventory and pricing standpoint. While single family home sales have declined at a slower pace than condos and townhomes, pricing remains much stronger. The average price of a single family home is only 1% less on a year to date basis than last year during the same period but the median price of a home is up by almost 5%. Condos and townhomes have declined by 6% on average and 10% for the median price. Of course, you can't buy a median priced home, it is simply a measure of affordability.

With inventory at stratospheric levels, it continues to amaze me that prices have not declined more severely but it demonstrates the overall strength of the Charleston South Carolina real estate market.

Buyers, it remains a great time to buy, and while you can't realistically expect to "steal" a home with a ridiculous "lowball offer", there are motivated sellers in the market that will enable you to buy low. A comparative market analysis of similar homes will help you to frame an offer that will be advantageous to you and likely to be accepted or at the very least counter offered by the seller. With homes selling for approximately 96.5% of list price, it is likely you can make an offer at least 5% less than a well priced listing and expect to get it in most cases. Just recently, a client of mine was able to buy at 8.3% off of list and there was no counter offer, the contract was ratified for the bid price. If the listing is overpriced, has been on the market for a long time or indicated as motivated seller, offer even less.

Sellers, if you don't "have to sell", this is not the time to be testing the market to see what your home may be worth. It is important to understand that your home has to be priced right in order to attract buyers and offers. Your home is competing with significant inventory and fewer buyers than previously because the mortgage market has tightened qualifications for lending money. While prices have held up, they haven't gone up 10% or 20% as in previous years so it is important to be realistic in evaluating the real value of your home when putting it on the market. The net result of starting too high and reducing it too little too late likely will be a lower offer than you might have received when pricing it to market when you first list.