Charleston SC Average Home Sale Prices Finally Drop in September

The conditions have been right for home sale prices to drop for some time with inventory levels continuing to increase. Yet, month after month, average home sales prices Charleston wide have continued to increase.  The average sale price finally dropped in September. (see below)  We saw a similar drop in July, and then back to an increase in August so we still don’t know for sure that we have a trend.  October is another month.  You can drill down into just about any part of town, even to the subdivision level, and prices have been increasing…in spite of increasing inventory levels. 

Charleston is a great place to live.  We have weather to die for with four seasons, lot’s of things to do for all ages, good schools.  Cara and I have lived and worked in this area for 15 years.  After living here for 10 years, we moved to Georgia in 2002-2004 and moved back.  If you aren’t already sold on Charleston, you simply haven’t spent enough time here.  If you’re already sold on Charleston, and are planning your move, the timing is right.  It could get better possibly.  Who can tell?  I definately don’t subscribe to using market timing for investing in real estate.  What you want to avoid is a “bubble” situation.  There simply isn’t any evidence that suggests that we have that sort of thing here in Charleston.  We don’t have any one industry like oil or technology that dominates our economy.  There are a lot of people that still want to move here, and if anything is slowing things down, it’s that they’re having difficult selling their homes where they are now. 

It’s certainly getting more difficult to buy a home now.  100% financing with moderate credit scores are going to go away.  That will definately affect the number of buyers out there. 

Sales and Inventory History

Monday, October 08, 2007
Category – Residential

Month Year Monthly Sales Avg ListPrice Avg Sale Price % Diff Sell/list Avg DOM Curr Inventory Months Inventory
January 2006 1180 $320,178 $312,341 97.55% 63.0 5403 4.58
February 2006 1180 $280,734 $274,314 97.71% 62.0 6182 5.24
March 2006 1627 $306,203 $298,971 97.64% 66.0 6581 4.04
April 2006 1441 $303,275 $296,733 97.84% 62.0 7042 4.89
May 2006 1660 $325,230 $316,575 97.34% 60.0 7461 4.49
June 2006 1773 $289,490 $281,986 97.41% 65.0 7934 4.47
July 2006 1466 $299,368 $291,011 97.21% 63.0 8541 5.83
August 2006 1435 $298,007 $289,876 97.27% 68.0 8832 6.15
September 2006 1464 $279,815 $271,870 97.16% 71.0 9059 6.19
October 2006 1184 $310,670 $299,181 96.30% 76.0 9476 8.00
November 2006 1166 $286,093 $277,676 97.06% 79.0 9456 8.11
December 2006 1176 $282,242 $271,683 96.26% 88.0 9150 7.78
 
Total 2006 16752 $298,442 $290,185 97.23% 68.6 7,926 5.83
  
January 2007 893 $316,597 $304,946 96.32% 97.0 9157 10.25
February 2007 977 $284,609 $274,896 96.59% 99.0 9524 9.75
March 2007 1296 $303,094 $293,067 96.69% 94.0 9998 7.71
April 2007 1086 $303,123 $294,057 97.01% 91.0 10412 9.59
May 2007 1329 $315,476 $304,580 96.55% 92.0 10705 8.05
June 2007 1360 $336,438 $324,334 96.40% 89.0 10724 7.89
July 2007 1160 $310,905 $298,938 96.15% 91.0 10685 9.21
August 2007 1133 $332,407 $319,387 96.08% 94.0 10649 9.40
September 2007 878 $306,711 $296,856 96.79% 95.0 10705 12.19
 
Total 2007 10112 $312,151 $301,229 96.50% 93.6 10,284 9.33
  
Total 2006-2007 26864 $305,297 $295,707 96.86% 81.5 9,105 7.50

Let us know your thoughts.  It will be very interesting to see what happens to the supply of buyers out there. 

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One response to “Charleston SC Average Home Sale Prices Finally Drop in September

  1. When buying high priced homes take into consideration loan amounts that may cost you a higher interest rate. The magic number is $417,000. Going over this loan amount will kick your rate up 3/4 of percent. If you do not have enough down payment money to go under this amount, you can get a home equity line of credit (2nd mortgage) to make your rates very attractive on both loans. For instance on a $600,000 sales price with 20% down payment of $120,000, you would need a loan for $480,000. Instead of financing the full amount in one loan at a higher interest rate you can do 15% of the sales price in a home equity line of credit of $90,000. Then your first mortgage (65% of the value) would be of $390,000 at the best interest rate available. Contact us at 849-5525, David at Primary Residential Mortgage, Inc to see how this can benefit your situation.

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