November 2008 Charleston housing report
As promised, an early look at the past month's housing activity throughout the Charleston real estate market. For some reason, I thought it should post around the 15th of the month but when I looked back at last month, it posted on the 10th. As they say, better late than never.
With the turmoil in the financial markets accelerating in early September, November was the first month that the real estate market began to really feel the impact of the economic problems. And as you'll see below, sales slowed dramatically, inventory stayed at high levels and prices were pressured. Part of the reason for lower prices is due to the mix of homes that are currently selling best, specifically foreclosures and lower priced homes. But obviously, with so much inventory to choose from, buyers can also be much more aggressive when making an offer.
The good news is on the mortgage front. 30 year fixed rate loans are currently quoted below 5%. That is absolutely incredible. And now there is additional relief for jumbo loan rates and I saw a rate quote yesterday for 6.5%. Low mortgage rates will really help your buying power when combined with high inventory, very motivated sellers and distress sales.
Forget price for just a moment, unit sales were down 50% year over year and the absorption rate is over 24 months based on the current rate of sale. WOW! As to prices, while the media has been reporting on the dramatic price declines across the country, the impact of California and Florida weighs heavily on most indexes. And if it's any comfort, even looking at a 7.5% decline in the median price of a home in Charleston from last November to this November, that's moderate compared to the drop in stocks on any given day during September and October.
Statistics compiled by Howard Arnoff using the Charleston MLS as the source of data, information deemed reliable but not guaranteed.
