The Charleston S.C. tri-county area residential real estate market has certainly taken its lumps along with the rest of the country over the past 4 years. When looking at several statistical benchmarks, overall closed sales units have fallen 6.8% since November 2007 running through October 2010. But the past year may well be the harbinger of better days to come. Our most recent twelve months of activity (Nov. 2010 to October 2011) shows a 1.5% increase in closed sales units, up from 8,735 to 8,864.
The annual average and median sales price for our area has not won back any ground yet, but there are signs that this could soon change for the better. The number of closed
The annual average and median sales price for our area has not won back any ground yet, but there are signs that this could soon change for the better. The number of closed
sales units has been higher for each of the past 4 months, July through October, compared to the same period in 2010 (right after the Federal tax credit for home buyers program ended). This increased demand without governmental stimulus is a welcomed sign. Another encouraging element is that while the “sold” price per square foot has fallen during the past 12 months, it has stabilized during the past 4 months and October’s figure actually rose to $122 which is above the year’s average of $119.
Coupled with increased buyer demand, there has been a decrease in the supply of homes for sale. Total residential units for sale have decreased 11% over the past 12 months. And setting the stage a little further are continued stable and historically low mortgage interest rates which are hovering around 4% for fixed, 30 year term loans.
The employment picture in Charleston will be another contributing factor to the real estate market recovery with Boeing’s new presence and the businesses yet to come that will supply Boeing. While South Carolina’s unemployment numbers have been among the nation’s highest, we are perhaps at a turning point. The state’s unemployment rate fell to 10.5% from 10.9% in October. This is the first September to October decline in 5 years according to the S.C. Department of Workforce and Employment. The Charleston region’s unemployment figure is far healthier; its rate fell from 9% to 8.5% in October. While a month does not make a trend, it could be an indication of better days to come.
The immediate future for selling a home is better than it has looked in a long time and the bright economic future in the tri-county area certainly will be a key to the real estate market’s recovery. Increased employment will hopefully lead to reduced distressed sales.
And that is good news.
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