Charleston real estate market report, sales and inventory, January 31, 2009
The 2008 Charleston real estate year end market report could not have been accomplished without SnagIt which gives you the ability to do a screen capture and then easily edit the graphics. I've been using it for about the past 6 months and the charts and graphs have been greatly improved as a result. There is a free trial and you can then purchase the software for $49.95. Now, after this brief endorsement and the required disclaimer immediately below, we'll get right to the report.
Statistics compiled by Howard Arnoff using the Charleston MLS as the source of data, information deemed reliable but not guaranteed.
Charleston Home Sales
Clearly, it was a lousy year as sales activity in Charleston declined every month from the previous year and total sales tumbled from 12,996 in 2007 (blue line) to 8948 during 2008 (red line), a decline of over 31%.
Inventory and Absorption Rate
Inventory levels (red line, left axis) remain elevated and while the number of homes on the market has been declining slightly (and always during the last couple of months of the year), lower sales volume negatively impacts the absorption rate (blue line, right axis) which now stands at almost 21 months. The absorption rate reflects how many months it would take to sell out of current inventory at the current sales pace. The most important thing to watch is whether inventory once again begins to build this spring and in my opinion, it will. But let's look to see whether demand increases due to more attractive Charleston home prices combined with very low mortgage rates.
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. It can also be referred to as the absorption rate.
Look for the Charleston market report on home price to be published tomorrow.