Thru-way From Ashley Phosphate to Ladson Road is Done

This is old news by now.  If you’re considering a purchase along this route, consider the pro’s and con’s.  Dorchester Road over the last few years has become more and more congested.  Many people undoubtedly will use this route as a short cut, particularly during the school year when Dorchester Rd. Traffic is the worst.

Check Out NEW www.Move2Charleston.com Website To Look For Homes For Sale in Charleston SC

The new friendlier, easier to use www.Move2Charleston.com website was launched in July 2009 as part of our ongoing quest to provide state of the art internet tools to real estate buyers and sellers.  We invite all of you to give it a try and compare it to any search program you are using.  The best part about the tool is that it facilitates the buying process between buyer and agent.  You can easily select your favorites and send them to your agent.  They then, in turn, can help redirect you and refine your search so that when you finally come to town to look at homes for sale, you’re prepared with your top picks.  Depending on scheduling, your agent can even preview some of the homes to help you speed up the process.  They can check on property disclosures to see if there is anything unusual about the home that would disqualify it from your search. 

Again, we invite you to check out the new www.Move2Charleston.com where the future Market Updates will be posted.  If  you’ve been visiting www.allthingscharleston.com, or if you’ve come to allthingscharleston through another blog post, we also invite you to see our more current blog posts at www.Move2Charleston.com.

First Evidence That Charleston Real Estate Market Has Reached Its Bottom

For the first time since the second half of 2006, we are seeing unit sales exceeding the previous year.  The Charleston MLS is showing 734 sales in September of 2009 vs 32 in September of 2008.  Yes, I know it’s not much.  But it’s better than going down and down and down.  Also, the average price per square foot edged up ever so slightly from $124 in August to $129.  I’m looking for at least a 3 month trend before I conclude the turnaround is here to stay, but again, at least there is an initial sign.  It might be another year before we put 3 months together, but at least it’s a start.  We have to allow for the effect of the $8,000 first time home buyer credits which we did not have this time last year.  Whatever, the case, I’ll take whatever good news I can get!

Looking For A True Picture of Charleston Price Changes? Square Foot Price Changes Show Truest Picture

There is a problem with “average” and “median” home sale prices in tracking home sale prices.  What about the buyer  that qualifies for $250,000.  They see a few houses that meet their needs in the $230k range.  They could get what they need for $230,000, even what they originally “wanted”.  However, after a week of house hunting, they realize they can get more.  Even in 2006, my experience as a buyers agent was that just about everyone, (myself included) would really love to have a home that is $20,000-$30,000 outside of their price range.  Maybe it’s the bonus room.  Or it could be the granite counter tops and wood floors.  Perhaps it’s the larger lot with more privacey.  Whatever the case, the bottom line is, “average” and “median” home prices are incomplete indicators of home price trends. 

 

Which areas have been affected most?  Recently, the Charleston MLS added a new indicator which is very  helpful.  I have compiled the changes since 2006 so you can see which areas have been affected most.  As it turns out, beach communities have seen the most dramatic drops.  Here is the grid so you can see for yourself. 

	August 2009 to August 2006 Comparison
	Charleston SC Real Estate Market – Average Price/Sqft.
	August-06	August-09	%                                +/-
Downtown Charleston	$                        376	$                            319	-15.2%
James Island	$                        171	$                            141	-17.5%
Daniel Island	$                        265	$                            235	-11.3%
Mt Pleasant S of 41	$                        199	$                            159	-20.1%
Mt Pleasant N of 41	$                        185	$                            140	-24.3%
“North Area”	$                        106	$                              90	-15.1%
Folly Beach	$                        515	$                            242	-53.0%
Isle of Palms	$                        688	$                            298	-56.7%
John’s Island	$                        157	$                            145	-7.6%
West Ashley	148	121	-18.2%

 Mt Pleasant was also affected much more on a percentage basis, while John’s Island experienced the least impact.  Keep in mind that there are areas within areas.  James Island and West Ashley have water front properties that you might expect have been hit hard, now that supply and demand are working against them.  Demand is way off across the board, driving prices down. 

The North Area is very important because this is the most affordable area in Charleston.  It encompasses Summerville, Goose Creek, Hanahan, and North Charleston outside 526.  Many families moving to the area, and first time home buyers choose the North Area because of square foot prices being around $100.  Also, if you’re looking for more home for your  money, you pay less for location and can get more house for the same investment.

Inventory in Berkely and Dorchester Counties is Getting Back to Normal

It’s not there yet, but it’s going in the right direction.  For those of you that don’t know, Berkeley and Dorchester County has always had the most affordable housing for middle income families, particularly those with school age children where quality of education is a primary concern.  Mt. Pleasant, West Ashley, and James Island on the other hand are more expensive primarily due to their proximity to downtown and to the beaches. 

Stay tuned for the raw numbers.  August stats aren’t completely in yet thanks to those procrastinating agents that haven’t changed their listings in the MLS to “Sold” status.

Raw Market Data for August 2009

Sales and Inventory Report
Category – Residential Statistics for Entire MLS from 8/1/2007 – 7/31/2009
Month	Year	Monthly Sales	Monthly Volume	Avg List $	Avg Sale $	Avg $/Sqft	Median Sold $	Avg DOM	% Sold/List	Current Inventory	Months Inventory
August	2007	1180	$374,088,399	$329,743	$317,024	$159	$210,000	79	96.14%	11816	10.01
September	2007	970	$288,411,129	$306,911	$297,331	$156	$199,857	77	96.87%	11839	12.20
October	2007	916	$268,044,935	$302,872	$292,625	$157	$202,562	82	96.61%	11733	12.80
November	2007	933	$246,474,609	$273,999	$264,174	$143	$200,000	82	96.41%	11626	12.46
December	2007	793	$229,363,340	$301,581	$289,234	$149	$209,503	92	95.90%	11267	14.20
January	2008	652	$195,581,685	$313,890	$299,971	$154	$203,593	101	95.56%	10972	16.82
February	2008	735	$217,982,218	$309,576	$296,574	$175	$200,000	111	95.79%	11281	15.34
March	2008	869	$268,826,066	$321,409	$309,351	$174	$206,290	102	96.24%	11522	13.25
April	2008	838	$263,391,473	$328,502	$314,309	$169	$208,500	98	95.67%	11835	14.12
May	2008	903	$277,825,579	$323,510	$307,669	$159	$211,710	114	95.10%	11812	13.08
June	2008	920	$280,467,466	$321,305	$304,855	$149	$205,950	103	94.88%	11730	12.75
July	2008	877	$262,054,317	$315,312	$298,807	$146	$205,745	106	94.76%	11792	13.44
Annual:		10586	$3,172,511,216	$312,684	$299,689	157	$205,000	94	95.84%	11602	13.15
Month	Year	Monthly Sales	Monthly Volume	Avg List $	Avg Sale $	Avg $/Sqft	Median Sold $	Avg DOM	% Sold/List	Current Inventory	Months Inventory
August	2008	805	$230,526,616	$301,111	$286,368	$149	$197,500	100	95.10%	11638	14.45
September	2008	733	$191,739,979	$274,150	$261,582	$133	$187,000	100	95.41%	11490	15.67
October	2008	641	$172,915,253	$284,664	$269,758	$132	$189,900	108	94.76%	11435	17.83
November	2008	506	$133,325,340	$275,843	$263,488	$137	$185,000	90	95.52%	11314	22.35
December	2008	560	$144,986,313	$272,813	$258,904	$126	$196,116	97	94.90%	11038	19.71
January	2009	426	$111,287,940	$277,734	$261,239	$210	$175,000	115	94.06%	10802	25.35
February	2009	439	$109,311,231	$265,455	$249,000	$203	$181,000	110	93.80%	11015	25.09
March	2009	626	$157,801,895	$267,561	$252,079	$126	$183,444	124	94.21%	11150	17.81
April	2009	574	$153,971,582	$289,739	$268,243	$130	$180,303	120	92.58%	11275	19.64
May	2009	736	$189,268,235	$275,520	$257,157	$127	$182,638	118	93.33%	11286	15.33
June	2009	784	$205,293,508	$277,846	$261,853	$132	$192,500	117	94.24%	11194	14.27
July	2009	814	$211,259,465	$277,150	$259,532	$131	$181,000	122	93.64%	11137	13.68
Annual:		7644	$2,011,687,357	$279,047	$263,172	141	$186,950	110	94.31%	11231	17.63
Annual:	2007 – 2009	18230	$5,184,198,573	$298,579	$284,377	150	$197,245	101	95.24%	11417	15.03
Note: The “Current Inventory” column(s) reflect the number of active and contingent (on market) listings on the 16th day of each month. The “Months Inventory” column(s) value(s) equal “Current Inventory” divided by “Monthly Sales”. This reflects how many months it would take to sell out of inventory at the current month’s rate of sale.

Average price per square foot has been holding steady for four months.  Inventory is creeping downward ever so slowly.  Months of inventory is clearly down.  Sales vs last year are down, but not at as drastic a rate as 2008 vs 2007.  We may have seen the worst of it, but this is only speculation. 

What will it look like when we’ve turned the corner in Charleston?  I’d like to see average price per square foot continue to square off if not rise by a couple of bucks.  The months of inventory and absolute numbers are still crazy high which is NOT good for the future of home prices.  It would be good to see them start dropping, but this probably isn’t going to start happenning until we see some of the other economic indicators start improving, like retail sales, and employment.  

Sellers, homes are selling but only if the home is priced right out of the gate.  The buyer doesn’t care how much you owe or how much you’ve invested.  Keep in mind, hopefully when you go to buy, you’ll be able to take advantage of the buyers market once you’ve sold your home.  Time is on the buyer’s side and they’re looking for bargains.  Make sure your home is maintained, decluttered and well staged.

Good News About Charleston

I”ve always report the real numbers here at allthingscharleston and my message all along has been, “maybe this is a good time to buy; maybe it’s not.  It depends on your situation.”  I’m less optimistic than my fellow real estate agents and besides, any message that says, “Now is a great time to buy.” is bound to be perceived as self-serving anyway.  What do you expect the real estate association to say?  “The market is crap and if you’re smart, you’d wait it out at least another six months?”  In fact, that probably is the best advice for most of you; however, if you’re moving to Charleston or are ready to move UP in price, this can be a good time.  Also, there is a lot of good news about Charleston on the natoinal scene.  It really is a great place to live depending on what you’re into.  If you want amusement parks and a world class nightlife club scene, Charleston probably isn’t your place.  But if you like good food, fun and friendliness, Charleston is awesome.  The weather is great if you know how to take care of yourself in the heat.  (like stay inside if you’re from Minnesota) 

If you’re interested in learning more about Charleston, this is a great link, particularly if you are comparing cities.

http://www.pressomatic.com/ctar/upload/Charleston_Real_Estate_GoodNewsAboutCharlestonMarket.pdf

Let me know your thoughts.

Is This a Good Time to Buy? Have We Seen The Bottom in Charleston?

There’s a new leading indicator in the MLS stats that is an equalizer.  It’s the average price per square foot.  It was tricky trying to base home prices based on the average or median price because, what if most buyers are spending their bugdet and getting more home for their dollar?  In May, the average price per square foot was $128 vs $159 May last year, and $130 in April.

Cash In on Tax Credits While Making Your Home More Energy Efficient

You can qualify for 30% toward materials up to $1,500 for roofing, siding, heat pumps, air conditioning and so on.  http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c3.  It just takes a little research, an estimate and the right forms and you’re all set.  It’s best to consult with your tax professional before making any final purchase decisions.  http://www.irs.gov/pub/irs-pdf/f5695.pdf is the link to the form you will need.  There you are.  You have the two references you need so go ahead and call your contractor.  Oh, yes there is a catch.  You’ll have to wait until tax time next year before your credit materializes.  I wouldn’t wait since you never know how long we’re going to keep on funding programs out of any empty bucket.  Hope this helps folks.

Top Business Managers Looking for a Challenge? How About Becoming A Business Consultant?

This may seem a bit off topic for Charleson, but times are tough, and there are people looking for opportunity.  I have been working with the Business Management Consulting Firm IPA since 2000, and thought it would be a good idea to put the word out via this blog that employment opportunities exist for Savvy Business Managers with superior leadership skills.  I’ll give you the bad news first.  The job is 100% travel where leave Sunday night and come home for the weekend Friday evening.  Many people that attempt to get started with IPA are unsuccessful, mostly because the job requires tremendous flexibility and adaptability.  The work can be very gratifying to the point of being addictive, explaining why many consultants stick around in spite of the crazy travel.  Anyway, here are the qualifications for a Business Consultant:

10 Years Senior Management Experience

Bachelors Degree

Ability to work freely with MS Excel and Word

You have to survive a 10 day training/selection process.  My class started with 23 and ended with 13.  The work is very challenging and rewarding for those that have the business and leadership skills to affect change in small businesses, most of which are under $2 million in annual revenue and less than 15 employees. 

If you’re interested, please get in touch with me so I can introduce you to the corporate recruiter.  My email is jim@signaturesgroup.com.  I’ll happily provide you with candid answers to your questions about what it’s really like, the good the bad, and the ugly.  Happy job hunting.