Charleston real estate market report, sales and inventory, November 2, 2009
For the first time since back in February 2006, monthly sales were higher on a year over year basis in September and are likely to be higher again in October since 621 sales have already been recorded compared to 641 last year and because the Charleston MLS is a self reported system, some Charleston real estate agents are notoriously slow about entering closed sales and certainly more than 20 sales will be trickling in over the next month. By the way, prices in October on a median basis were $167,000 so that should also tell you that the market has been significantly impacted by both first time home buyers and buyers looking for good deals on bank owned homes and short sales.
Statistics compiled by Howard Arnoff using the Charleston MLS as the source of data, information deemed reliable but not guaranteed.
Sales
Even though the big chart below doesn't illustrate the higher sales figure as clearly as my excitement about it, it's also important to point out that 2009 has been a tale of two markets, the entry level market has certainly stabilized but not much has changed in the mid priced and luxury real estate markets, sales continue to be lower on a year over year basis at the same rate as before and inventory (as you'll see below remains plentiful).
With an extension and expansion of the home buyer tax credit expected to be passed by Congress and signed by the President in the next few days, it should do two things for the Charleston real estate market, first, it will help smooth the transition to the elimination of the tax credit during the usually slower holiday season and first few months of the year and will help the move up market with the addition of a home buyer tax credit for those who have owned their current home for the past 5 years (please note that nothing is final until passed and signed but all indications are that these are going to be the terms.)
Inventory and absorption rate
Inventory is represented by the red line and corresponds to the left axis, the absorption rate is represented by the blue line and corresponds to the right axis.
Noteworthy is that inventory levels seem to have peaked a little earlier in the year than previously. Once again, the absorption rate looks much better for homes under $300,000 than homes at higher price levels but remain solidly in what would be considered a buyers market.
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.