December 2011 Statistics

December closed sales were up by 18% from November to December in 2011 for the Tricounty area. That's a robust increase considering it is the holiday season when sales typically fall. A comparison of 4th quarter closed sales units in 2010 to 2011 show a very nice increase of 10% for the entire Tricounty. Inventory figures fell by 16% in the 4th quarter of 2011 compared to 2010. Prices have still remained stable over the last several months in all areas but North Charleston in Charleston County.

 The big winner overall for increased sales and reduction of inventory was West Ashley and James Island. Together they posted a whopping 30% increase in closed sales from the 4th quarter of 2010 to the same period in 2011 while seeing an inventory decrease of 23% in the same time frame.  These two areas also posted a very respectable "months inventory" index in December 2011 of 6.47. The overall tricounty was running well above 10 months of inventory for most of the first half of 2011and latter few months of 2010.  

 For those of you in the northern tricounty, this is a notable piece of information: Dorchester and Berkeley County (excluding Daniel Island area), saw new construction take a 32% market share of closed sales. Bank owned and short sales took another 24% of residential sales and this is a close approximation due to the various ways these type sales can be noted in the Multiple Listing Service. The figure is likely a few percentage points higher.

 Is this overall good news a harbinger of better things to come for the Charleston housing market? The stage is seemingly set for a turn to positive gain for home values, but all could be altered if reports of lenders being poised to release a larger portion of  foreclosed inventory becomes reality here locally. On the brighter side, prices are still at five and six year lows in the Tricounty and interest rates are at their lowest point, 3.98% for a fixed 30 year conventional loan, since 1981 when the yearly average was 16.63%

 Low prices and extremely low interest rates make this an extraordinary time to purchase a home for you and your family. Have you checked rent prices lately? This is another financially sound reason to buy now instead of putting it off and waiting for the proverbial "bottom of the market." When it does happen, most of the "experts" will have missed it and most of us non-experts will  again have waited too long to take advantage of a great opportunity. If you're happy in your current home and don't want to move, consider investing in rental properties. Again prices for homes are low and rental rates are quite good due to high demand and very low inventory. Buyers looking to occupy a home should also note that in most cases it is more expensive to rent a home now compared to total monthly payments on a like kind property that they could own.

Jim Hall
Realtor®
AgentOwned Realty
843.452.5521
Jim.Hall@agentownedrealty.com