Charleston real estate activity [before and after the tax credit]
There are some who are saying the the first time home buyer tax credit needs to be extended (again) as if the Charleston real estate market needs the stimulus. While it certainly helped stabilize the housing market, I disagree.
Let's look at the benefits first. April was once again a stellar month with 827 homes sold in the Charleston area, up 42.5 percent from the 580 homes that sold in April of 2009. Looking ahead, there are already 443 homes sold in May with this week yet to be counted and as you all know, the last week in the month is always the busiest. Currently, there are 1724 homes under contract that are contingent and most, but not all will close and there are an additional 606 homes that are pending (all contingencies removed) that will almost surely all close. That's good activity.
But, will the market just dry up now that the tax credit has expired. I don't think so.
In the past few days, I got several emails from people who indicated they were first time home buyers and while demand has certainly been "pulled forward", not all first time home buyers stopped searching on April 30th. And then there are those buyers whose motivation was not solely dependent upon the tax credit who are still interested in buying a home in Charleston.
Mortgage rates are still at near record lows, the local Charleston economy is in much better shape than many other places around the country and after all, who wouldn't want to live in Charleston.