May 15, 2024 at 9:59am | Jonathan Crompton
Beach weather is here!  
Man after a few days in the high 80s it sure does feel like Summer!Who is looking forward to getting a ticket on the Isle of Palms because your car was 3 feet 11 inches off the road and not 4 feet! I remember when.... oh well.

What else is heating up is the market, which it does every time for months of March, April and May. I believe the general public has come to terms with the fact that the rates are not falling like many had hoped, even the FEDs. It seems we are sitting in this environment for the remainder of the year.

The other thing that is not falling, which is why I think the public is accepting it, are home prices. A huge question is WHY?! I get that all the time when I am talking to people, friends and other agents. The reason? Well it is still an inventory issue. NOW there are macro markets and micro markets. The numbers are for the Macro Charleston Tri County area market.

The Micro comparison would be a specific neighborhood or area. Some areas are sitting on well below normal inventory levels while others may see higher. For Example, in the $600-700k range in the entire Summerville area, you are sitting on 8 months of inventory! That same range in Mount Pleasant has 3 weeks of inventory....

Market is still good and strong, just depends on your micro market and the competition/activity within it!



To the Update!


 
Average Sales Price:

Prices SKYROCKETED in April. The Average home price was $678k and up 19.5%! This is in the face of the interest rates fluctuating around the high 6% and the mid 7% range. I think this should start to level out and go back to a more normal 4-5% increase year over year...
Average Days on Market: 

Again the days on market are slowly going up, we are up to 38 days on average which is up just 5.6%. Again, I bring this up all the time, though it is worth mentioning that before Covid our average time on market was almost double that. So keep it in terms of perspective I suppose. Average Months of Inventory:

It is slowly rising year over year though remaining fairly flat month to month at the moment. This is our peak contract writing season and we are entering our peak listing months. It will be something to continue to watch, though again for perspective, we were sitting on roughly 5 months of inventory from 2014-2019 and it was a normal or as normal as a market as I have experienced in 17 years. So still way too little inventory for our market, plus since we have probably grown our population by 1/3rd if not more.
New Listings on the Market:

2,234 new listings hit the market in April and that was up 22.5% since last year! Crazy how much of a push we are seeing with sellers. Great surge though again in May 2019 we had 2,597 listings hit the market...Homes Under Contract:

Another good month of contracts. We saw 1,804 properties go pending which was up 7.4% from last year. This is the peak contract writing season and after May we typically start to see the contracts slow down. Why do you ask? People tend to move or make the move around school. Meaning most people try to time the sale/purchase around the end of schooling so they can have the Summer and be ready for next school season.Closed Homes:

Ok so last month we were down year over year for the month though this month we are back up. We had 1,625 homes go to closing which was up 8% from last year. These closings are still in good levels saw 1,906 homes go to closing in May of 2019.  So, what does this all mean?!

Well home prices are staying strong and increasing. Eventually we will see a slower increase, moving back to the traditional 4-5% a year. I see that in some areas already. The rates are going to remain at this level for some time in my opinion. Any rate cuts we see, I am hopeful that we will land in a low 6% to a high 5% rate which could remain there for some time.

The inflation data(wrote this after I shot the video!) was good and the market rallied, though I am hoping this is not a one off. With the Feds talk about inflation is still higher than they expected and no mention of rate cuts makes me think we will most likely not see one this year.

Can you imagine if the rates just dropped a whole 1%, what that would do to the housing market? It would create a frenzy once again and I think they know that.

Market is still strong. It is always a good time to buy if you need a home! You need shelter and you are either paying your mortgage and creating a long term forced savings or you are paying rent and loosing that money with no return.

If you have questions about a specific market in the area let me know I am happy to help!


Until then,

Onward
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