Charleston Real Estate Blog

OK JS, thanks for stopping back. I had a couple of things to take care of once I got back to the office but I just took a look at the MLS and found the property is still active at $689,900, a price reduction of $10,000 since being listed about 2 months ago.

Of course, even if it would sell for 689 and if I was representing the buyer, we wouldn't offer that much, the seller will likely not make money.

As to Rivertowne, 57 homes are active at 600k and above.

Sales in the last 3 months and 10 days:

April:   5

May:     3

June:    4

July:    2 (through 10 days)

I hope that helps.

What are your thoughts on how prices in Charleston have been holding up despite the slowing sales and growing inventory?  

JS, as always you are entitled to your opinion but how about providing some documentation regarding your statement "keep seeing houses going for 10-15% less". Is this in the Charleston South Carolina real estate market or is it elsewhere in the country because I'm not seeing what you are talking about in the Charleston area?

As to the data provided, while it isn't perfect, I doubt there is a conspiracy to distort the numbers by realtors, lenders, banks. There are errors and duplications in the data from time to time and you just have to live with a slightly imperfect world. It's kind of like when the government issues statistics and then corrects them in the following report, as an example, there are 3 revisions to the quarterly GDP.

But take a look at the average price for single family homes for the past 12 months. That are over 13,000 sales and prices have held up at basically even so a few little errors wouldn't change that statistic very much. Perhaps instead of a 0.83% increase, there might be a 0.42% decrease in the average selling price.

Overall, 12 months without prices falling says a lot about the strength of the Charleston real estate market despite all the bad news to the contrary.

As to catching a falling knife, while I don't think the market will turn around today with prices rising quickly starting tomorrow, I seriously don't believe that we will have a soft market for the next 3-5 years in the Charleston area.

On the other hand, I don't pay very much attention to the failed economists hired by the National Association of Realtors (NAR) including the Laughable Lereah and his new replacement, whatever his name. Remember, all real estate is local and some markets are better than others.

By the way, I was thinking of a blog topic based on an email that I received the other day, "should I buy in a down market?", While you may not agreee with me, I'm sure you'll enjoy reading it, look for it in the next few days.

JS, you must be hanging out at those housing bust websites again - "nationwide data ... totally bogus"? Please.

As to the drop from 759 to to 699, how do you know the property was well priced from the start. Many sellers believe the value of their property is much higher than reality. Just ask my wife what our house if worth :)

Oftentimes a seller requires the listing agent to start the listing high. Many agents will agree to do so for a short period before bringing it in line with the market.

The data I'm providing is based on the price paid for 13,000 homes sold in the past year and you are providing 1 house as an example. Which do you really think is more accurate?

As to not trusting the data regarding days on market, you should have reason for concern. I recently wrote about that exact subject in "Relist, refresh, deceive".

JS, you are correct that sales price to list price reflects the last and most recent list price before a contract.

But it doesn't matter. Why?

The only thing that matters regarding price is what is paid, not the original basis on which the offer was made unless you think you are getting a "good deal" by buying an overpriced 759 for a "bargain" 670 by beating up the seller.

Once again, many sellers have inflated opinions of the value of their property. If they convince a real estate agent to list it at an unrealistic price, what does it matter if the price is ultimately reduced later.

Bottom line, price paid is the only important data point.