Charleston, SC Posts

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Media Hype on Real Estate: Truth or hype?

I have to admit that I'm a little tired of the negative media hype about real estate. First, real estate is local. National trends do not affect every market. In fact, 2007 was the 3rd best year Charleston real estate has ever had! This is great news for the market and it gets better because Charleston's unemployment rate is low and the growth in economy has not slowed down. In fact, it keeps getting better with the move of new companies like Google and DaimlerChrysler AG into our area. It's be nice to see the media get down to some nitty gritty numbers and show a better picture of what is going on and why.
National media has buyers frozen like a deer in headlights before they can even get started. They have promoted doom and gloom. Don't get me wrong. It's a buyers market. We are down on sales a little compared to last year, but the market isn't going south. According to Charleston MLS, the average sold price for the same time periods rose 3% (Jan-Sept 2006 and 2007). We are not in a declining market. What I have seen is a recorrection of overly inflated prices and simple supply and demand economics stemmed from a surplus of inventory (mainly to investors unloading and builders that don't seem to care). Historically, interest rates are still low. My parents' generation paid double digits of interest, upwards of 18 percent. Yeah, the days of 5 percent are gone, but 6 -6.5 percent isn't so bad. Real estate historically is still a solid investment, better than throwing your money down the tube with rent. However, you still have to be wise with a purchase and understand that buying may not be for everyone, particularly on the short term.
It's important to find an agent that knows the market and the community you are interested in. Both parties, buyers and sellers, need to set some realistic expectations on what to expect. Sellers: There is so much out there...you need to stand out above the rest for a quicker sale which includes a competive listing price at or below the latest comparables. Buyers: The real estate market is still alive.  In Charleston, over 10,500 homes have already sold this year! If you want to buy... the deals are out there, now is the perfect time.

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 1 commentMichele Reneau • October 01 2007 07:59AM

Comments

Too funny.

I have a blog written out on paper with a similar title. I won't read your blog yet, so I don't get accused of plagiarisms, but I'll give you a hint. About 4 years ago the press was blamed for over hyping the marketplace to sell newspapers and to sell ads to homebuilders.

 Frank 

Posted by FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com (Northern Virginia Homes - FRANKLY REAL ESTATE Inc) about 11 years ago

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