We had a record month in October, personally, we sold $4M worth of Real estate in the tri county area, which is a monthly best for us! We are grateful for our clients who trust us with their Real Estate needs wether buying or selling. We pride ourselves on being in the top 1% of Charleston Realtors and are grateful for your referrals of friends and family as well!
We are also looking forward to working with YOU if we have not yet!
To the Update!
What a year. So I have been watching the Real Estate Market for years...and lately I have been scratching my head around some of the pricing that is going on in the area. Some of it does not justify when you run a Comparable Market Analysis on certain homes.
Since the Covid shutdowns and reopening, we have seen a huge spike in buyer demand. We are seeing an exodus of major cities to areas that have lower property taxes, lower cost of living and that are places they would have visited on vacation, though now to remote working can work and live there(here). We are seeing record low interest rates with no sight of them spiking up. We start each week with Less Homes for sale then the previous week. Currently, there are 2,974 HOMES, Town homes and Condos available in our Tri County area!
We have a "new normal" when it comes to pricing. There has been a 10% spike in pricing since the end of May 2020. People are purchasing a home no more on price, though based on their monthly payment, since the interest rate are just so low. I personally am seeing homes that hit the market and think, wow thats priced above the market, then see it go under contract due to the demand in the market. Basic laws of economics are playing out in our Real Estate Market.
Average Sales Price:
Below is what I was referencing in the above. Since May we have seen a HUGE jump in pricing as our supply dropped. The average price in October was $442,270 which was up an astonishing 20.3% over the same time period of last year. This is looking to be the new norm in pricing, so if you were on the fence thinking it may drop, there is NO indication that that is the case.
Average days on market:
If you have been following me for the past few years you will notice that we have had swings with our Days on Market, though since February of this year it has been falling, drastically in fact. Our Average Days on Market for a home are at 44 days, which is down 21.4% from this time frame last year. I am seeing this with the clients I am working with looking at homes, we see it hit the market, price seems higher then the last few sales, it goes under contract with multiple offers. If you are looking, you need to have your ducks in a row AND be prepared to pay more for the home if it has been on the market just a few short days.
Average months of inventory:
Again, if you have been following these market updates, you know we have always been in a sellers market with roughly 3.5-4 months of Inventory for the past few years, which the graph shows below. Though since again, April we have been dropping due to lack of inventory and buyer demand. We are currently sitting on 1.6 Months of Inventory, which is down 60% from last year. So If we keep going at the pace we are we will be out of homes in roughly 2 months... this is a time where we typically see less homes coming on the market due to the holidays.
New listings on market:
We are seeing more Listings Hit the market still, though again with the buyer demand it is not enough. We actually need about 9K more homes to hit the market to just enter a BALANCED market, typically that requires 6 months of inventory. In October we saw 2,194 new listings hit the market, which was up 4.7%, which is good and we desperately need more listings...if You are thinking of selling, call me today to share whats going on and how to capitalize on the market conditions NOW.
Homes under contract:
We saw a slow down in March, rightfully so, though since April we have been putting record numbers of homes Under Contract. We have seen more homes go under contract then we saw enter the market for sale... October saw 2,270 Homes go pending which was up another 44.3%. Again the demand is overtaking our supply. Many people are finding themselves in multiple offers with multiple parties.
Closed Homes:
Closed homes are up, since contracts have been up. We are still seeing high record numbers in closed homes. This is great data to check out to see how many of the contracts actually make it to the closing table. In October we saw 2,015 Homes go to the Closing table which was up 45.4% since last year.
SO what does this all mean!We need more listings. It also looks like we are on a post covid bounce that is here to stay. Pricing is up and with building supplies at higher prices we will see the cost of new construction also rise. If you are in the market and thinking that you will be waiting for the next "crash" we may be a long time from it. We are still seeing record low inventory and record low interest rates. People have more equity in their homes then they did back in the '08 crash.
Again, for us to hit a balanced market we would need roughly 9k more listings to come on the market and thats just getting us to a balanced market, not a buyers market. So the best time to purchase a home is when you need one and when you can afford one. With interest rates this low it is a great time to capitalize on your long term investment, I mean home ; ).
Onward.
