March 2008
February 2008
THE SPIN
Did 2008 start out with a bang or a bust?
THE REALITY
I would say that 2008 started off with a BALL! And I don’t mean the ball dropping on Times Square celebrating the commencement of the New Year. The bouncing ball of the housing market has everyone scrambling.
The recent Fed cuts may or may not have a direct impact on mortgage rates, but I can say that interest rates continue to linger under 6% for a 30 year fixed rate.
Coupled with the increase in inventory, there are ample opportunities to purchase a home if your are in need of one. In the MLS areas of Dorchester County, which includes Summerville and parts of North Charleston, there were 113 property sales recorded for January 2008 at a dollar volume of over $23 million. The average selling price was $210,450.00.
The Preamble of the Code of Ethics and Standards of Practice of the National Association of Realtors® states;
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose great social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
In these times of drastic change, these words ring truer than ever. As a Realtor®, I abide by the entire Code of Ethics that was adopted in 1913 and has been continually updated to provide protection to the public.
2008 will bring many challenges to the real estate market. Regardless of the market, properties will sell. Many of them will sell for reasonable and satisfactory profits, others will sell at devastating loses to the owners and the lenders that can’t work out a revised mortgage. Real Estate is a cyclical business. We have descended the last Summit with a challenging hike, but in the Horizon, we can see the next peak! Hike on!
THE BOTTOM LINE
Summerville and the surrounding area continues to be a positive real estate market, Study your options, make wise decisions, and look ahead to a changed, but better future!
In this market, call me to be your Realtor® to get the best counsel and discuss the options that best suit your real estate buying or selling needs.
THE SPIN
In like a lion...out like a lamb?
THE REALITY
Although this long time adage is usually regarding the weather change from Winter to Spring, I have heard it used describe the stock market, the economy as a whole and just about any other change of events that can be categorized as chaotic to calm. To me, the lion represents the King of the Beasts. A strong and ferocious, but fascinating animal of the jungle. If only the housing market could come in like a lion, strong and ferocious. That, in my opinion, would be a fascinating turn of events! Going out like a lamb would be represented by the critics, consumers and Wall Streeters having calmed down and the reports taking a turn for the better!
So can this be a reality? Well, if MLS trends have any merit, yes March coming in strong like a lion and surging towards a better market can be a reality! Although, we are still way below the number of units sold year-to-date vs. 2007 numbers, February sales in Dorchester County were up from January’s sales. February sales were up albeit a small amount, with 118 closed residential sales amounting to a volume of $24,447,661.00. January results were 104 closed residential sales amounting to $20,805,275.00.
I’ll take an increase in sales anytime as a positive!
The interesting statistic is that the ratio of listing price vs. sales price decreased in February. What this indicates is that sellers are taking less. Although it dropped less than 1 percentage point, sellers are becoming more negotiable and taking a little less for their home to get it sold. All of this is necessary for the market correction that was inevitable. Foreclosure is still a viable thorn in the side of not only the housing market, but the families that are subject to loosing their homes because of the lending/borrowing practices of all involved.
We are definitely not out of the jungle, and the lion may be sleeping, but I look forward to better times when a stronger real estate market resembles the Biblical promise of the Lions and Lambs side by side in peace..
THE BOTTOM LINE
Summerville and the surrounding area continues to be a positive real estate market, Study your options, make wise decisions, and look ahead to a changed, but better future!
In this market, call me to be your Realtor® to get the best counsel and discuss the options that best suit your real estate buying or selling needs.
January 2008
THE SPIN
What a difference a year makes!
THE REALITY
In December’s newsletter, I stated, “It doesn’t take a rocket scientist, or a real estate professional, to tell the general public that the real estate market is in a monumental shift.” Wow, what a shift it has made. In a year where we saw inventories rise, mortgage lenders close, unemployment in the housing sector rise, and a sales slump, is there reason to believe that 2008 will be any better?
The optimist in me says absolutely!!! The realist in me says, it won’t be easy though. The great news for 2008 is that we live in the Summerville/Charleston area and still have a great culture, friendly people, and a rising interest from folks wanting to move into our area. Due to the rising numbers of available housing, there are plenty of choices for buyers, both in the new homes market and the re-sale market.
The challenge that we face is all too familiar. With so much inventory, where can buyers find the best deals? There are definitely deals to be made out there. Whether you are looking for a new home, a re-sale home or just a fixer upper, the deals can be found.
New home builders are offering substantial incentives to buyers with “free” options, interest rate buy downs and the like.
Individual sellers are having to also offer many incentives to compete and get their properties sold. Hopefully, many of them will rely on the expertise of a Realtor® to assist them in this market. Unfortunately, many of them are facing difficult financial times and will give up their homes to buyers for essentially no personal gain, or worse, short sale or foreclosure. There is no hiding the fact that foreclosures in Dorchester County are increasing. Foreclosure notices seemed to have tripled over the last few months. My hope is that those that need to sell their homes, for whatever reason, will find the perfect buyer and be able to move on with little or no affect on their enjoying life.
THE BOTTOM LINE
Summerville and the surrounding area continues to be a positive real estate market, in spite of the downturn and hesitation of a slowing economy and election year.
In this market, call me to be your Realtor® to get the best counsel and discuss the options that best suit your real estate buying or selling needs.
December 2007
THE SPIN
Local real estate conditions continue to change drastically.
THE REALITY
It doesn’t take a rocket scientist, or a real estate professional, to tell the general public that the real estate market is in a monumentous shift. The statistics, although subject to scrutiny, paint a very different picture of property sales in the tri-county area for the 2007 season.
After a record setting 5 years of soaring real estate sales, the market has made a huge shift towards normalization. With record sales since 2001 and 2005/2006 being hailed as some of the best years in real estate sales history, 2007 can be marked as the year of change. Who knows what 2008 will have in store for the buying and selling public.
Sales in Dorchester County, hailed as one of the country’s fastest growing counties, have shown steady downward trends in 2007. Each of the statistics for the sales volumes has shown a decrease. Some months have been worse that others.
The number of units sold through October 2007 was down an average of 46% when compared to the number of units sold for the same time frame in 2006. As for the total dollar volume, 2007 sales are down an average 41%. The good news is that the average selling price for 2007 was about 4% higher than in 2006! (through October) The national average was 3.2% higher using June 2007 figures.
The Office of Federal Housing Enterprise Oversight compiles statistics regarding the average percentage of price change in 287 major metropolitan areas throughout the country. Charleston ranks in the top 25% overall with a positive price change of 5.93% change from June 2006 to June 2007.
THE BOTTOM LINE
Charleston continues to be a strong overall market for buying and selling property when compared to the rest of the country . There are many factors that will indicate whether you are positioned to take advantage of the current market conditions. As seller’s, your challenge is great. In order to sell at the highest price possible and in the shortest time frame, your property must be priced correctly and in immaculate shape. As a buyer, the options are plenty. Combing the market and having a good negotiating strategy will win the best possible deal.
In this market, call me to be your Realtor® to get the best counsel and discuss the options that best suit your needs.
