Charleston, SC Posts

I wish I had a crystal ball to see into the future. What I do know is that real estate is a cycle like all other investments-stocks, bonds, etc. Generally, if you stay put through the lows, you'll come out on top. In the Charleston, SC real estate market last month (June), 1287 properties closed or sold, however, 2700 new homes came on the market in the same month! There are over 10,600 properties listed. At this rate, I believe that it will take 24-36 months for the market to correct. So what's the problem? Why is this happening? In our market, investors accounted for about 33% of property owners. As the cycle started to change, they dumped their property en masse. Along with that dump, an overwhelming number of the 180,000 anticipated permits were approved. Builders haven't slowed down building. Sellers are competing with new construction prices and they lose must of the time. SO WHAT can you do if you are a seller? First, get real. Understand the market and find out what you can do to compete? If have equity, compete on price if you must sell. Also, improve your home. Make sure it is sparkling clean. Give it a fresh paint job. Don't use stark white. Use a neutral color, (taupe, beige) b/c it gives a more high end look. Think about what improvements you can make to entice a buyer and do it...like hardwood floors in the dining. Keep it simple but set your home apart. Offer incentives...closing costs, buy down rates, HOA fees or condo fees paid for a year. These are just some suggestions but most importantly, as a seller, you need to know the cold hard facts about the real estate market. Numbers speak for themselves. Listen to them. On another note, what the Charleston market went through in the last few years is NOT normal and we are now paying the price for the good times.  We are going through a market correction and it is needed in order to return to a healthy market.  Buyers that will not be able to stay in a home for 4-5 years may need to reconsider purchasing or at least be certain to buy at least 7% equity up front to stay ahead of the curve for when they are ready to sell.

A lot of buyers are asking this question. If you are thinking about buying, there's no better time than now. There are some great deals out there. While sellers are still receiving 97% or more of list price, the good news is that they are pricing property more reasonably than we have seen in the last 3 years. There are some motivated sellers out there and you might be able to get yourself a steal too. If you have great credit, banks are bending over backwards to give you a break by cutting fees and rates for preferred customers.

It is a Buyers Market. However, the meaning of that in the Charleston MLS is that they is lots of inventory for you to choose from. Average days on the market is still around 90-100 days. That's still a very healthy number. However, it does mean that you have more choices and potentially more room to negoitate in your favor. It does not necessiarly mean you can get a property 20% under list price, however, you may be more likely to get closing costs or even downpayment assistance. It's time to get creative.

Some suggestions to find a good deal. Use a real estate professional to help you. Look for homes that have been on the market for over 120 days or properties that have had several price reductions. Be viligant in your search and keep in mind the best properties will sell fast. When you find the right house, be ready to act on it.

If you have been thinking of moving up, this may be the best time to buy. I know, I know, you are thinking, but I have to sell my house and I won't get as much money for it. If you will be trading houses up, you'll more than likely be saving money on the move up. If you wait for prices to get higher, the price of your next dream house will be higher too. You might sell for 5-10% less than you'd like to, but if you are moving up, the savings on average is greater. Example: Your home is worth $210,000. You list for $200,000 for a 5% loss in order to price it with the market. You buy a house worth $440,000 at $400,000 for a net gain of $30,000. It's a great time to move up.