Charleston forecast as one of 5 markets to fare best in 2010
According to Moody's Economy.com, Charleston is one of five real estate markets expected to fare best in 2010.
“Home prices in Charleston didn’t get out of line with household incomes; also, Boeing is investing in a fairly large manufacturing plant there, which could create some potential for income and job growth” according to Steve Cochrane, managing director at Moody's Economy.com.
Two factors were mentioned that would be positive for a housing recovery and Charleston has both working in its favor. A turnaround in the labor market would have a beneficial effect on household income and consumer confidence.
The Charleston economy has enjoyed good job growth despite the economy and many companies in addition to Boeing already have or will be relocating to Charleston adding jobs and increasing the demand for housing.
Secondly, a backlog in foreclosures which drag down home values and adds to supply. While there are foreclosures being listed every day in the Charleston MLS, the real foreclosure crisis is concentrated in the same four states always mentioned, California, Florida, Arizona and Nevada.
And let's talk briefly about the looming crisis in Pay Option ARM recasts and why there is the likelihood of more foreclosures to come as a result. According to Diana Olick at CNBC, "Only 9 percent of these loans had full documentation from the borrower and 76 percent were originated in California, Florida, Arizona and Nevada, our four disaster states for housing." (emphasis added)
From a distressed housing standpoint, the Charleston real estate market is certainly much healthier than many other real estate markets around the country.