Charleston real estate market outlook brightens with increased activity
After that headline, before anyone steps up and says, Howard, you've been pretty upfront and straight with us for a long time, how could you write that kind of nonsense and now you're starting to sound like David Lereah, let me explain.
Even though sales and prices are reported to be down sharply by Case-Shiller, The National Association of Realtors and various other housing reports recently reported by the media, activity level in the Charleston real estate market has been very active thus far during 2009.
First of all, January 2009 sales were dismal and prices declined as the Charleston real estate market report will show in the next few days as soon as it is published. February likely won't be much better. The economy is down and unfortunately, it will get worse before it gets better.
So much for the bad news, how about the good.
From anecdotal evidence, I can point to sharply higher activity on my website. The number of visitors increased by 66% during January and February compared to November and December and is up by 30% from January and February 2008. Email and telephone inquiries are both up sharply with real estate consumers seeking more information on available homes for sale in Charleston as well as contacts for my help with buying and selling a home. Those living in the Northeast and Midwest must be tired of another cold and snowy winter and many are expressing a desire to relocate to Charleston.
Homes under contract | contingent and pending home sales
As of today, a mere 237 homes have closed in the Charleston real estate market during February. That will increase because of the high number of closings always scheduled during the last week of the month and late reporting by the agents entering the data in the Charleston MLS. Still, it's a pretty low number. But there are 893 homes currently under contract (contingent) and an additional 232 homes pending (contingencies removed) that will hopefully be closing in the near future.
More good news.
There were over 9000 visitors on my website using the map based Charleston MLS search in the past two months, the highest number of users in the past year. There were actually more visitors starting on the search page than the home page which absolutely amazed me because it had never happened before. What that likely means is that visitors are getting serious by using the search repeatedly.
There have been hundreds of views regarding the $8k first time homebuyer tax credit from the Obama economic stimulus that is available not only to first time homebuyers but anyone who has not owned a home in the past 3 years. Clearly, while many are dismissive of the value of the economic stimulus package and whether it will create millions of jobs as promised, from a real estate standpoint, the government is effectively giving first time homebuyers a tax credit for 10% of the value up to $8000 for purchasing a primary residence. The bottom line, many first time homebuyers will not have to pay any taxes this year.
Buyers want a deal.
It would be an understatement to say the foreclosure pages on my website have gotten a lot of activity. Both pages ranked in the top ten of most viewed pages at 5th and 8th place respectively. If you are interested in buying a foreclosure, click the links to view Charleston foreclosed homes for sale over and under $200k.
Those who aren't necessarily interested in buying a foreclosed home still want to negotiate a very advantageous purchase. There is obviously some fear by real estate consumers of buying a declining asset. With high inventory levels, buyers know that deals can be made with motivated sellers. One of my clients was just able to purchase a property for almost 12% below list price and better yet, that was after several price reductions had already been taken by the seller. I'm not suggesting that every home can be purchased for 12% off or more, some could probably be purchased for a little less or a little more from list. It will depend on the sellers motivation, how long it has languished on the market, how close the list price may be to real value and a number of other factors but bottom line, you shouldn't expect to pay list price under very many if any circumstances. It's a buyers market and buyers know it.