Unit sales, Feb 2008 Charleston real estate report
March 31, 2008 | Leave a Comment
Let’s look at unit sales in the Charleston South Carolina real estate market and point out that unit sales have continued to decline in all real estate classifications with the exception of luxury condos and townhomes which have shown increases the past few months.
Statistics compiled by Howard Arnoff using the Charleston MLS as the source of data, information deemed reliable but not guaranteed.
Monthly unit sales, single family homes
| Month | Sales 06 | Sales 07 | Sales 08 | 07 to 06 | 08 to 07 |
| under 600k | |||||
| Jan | 697 | 641 | 437 | -8.03% | -31.83% |
| Feb | 788 | 727 | 467 | -7.74% | -35.76% |
| Mar | 1056 | 918 | -13.07% | ||
| Apr | 862 | 714 | -17.17% | ||
| May | 1057 | 868 | -17.88% | ||
| June | 1198 | 922 | -23.04% | ||
| July | 929 | 783 | -15.72% | ||
| Aug | 932 | 810 | -13.09% | ||
| Sep | 1014 | 666 | -34.32% | ||
| Oct | 745 | 592 | -20.54% | ||
| Nov | 823 | 625 | -24.06% | ||
| Dec | 802 | 546 | -31.92% | ||
| over 600k | |||||
| Jan | 88 | 65 | 47 | -26.14% | -27.69% |
| Feb | 70 | 50 | 40 | -28.57% | -20.00% |
| Mar | 122 | 96 | -21.31% | ||
| Apr | 102 | 77 | -24.51% | ||
| May | 132 | 91 | -31.06% | ||
| June | 124 | 105 | -15.32% | ||
| July | 100 | 76 | -24.00% | ||
| Aug | 111 | 101 | -9.01% | ||
| Sep | 88 | 52 | -40.91% | ||
| Oct | 93 | 45 | -51.61% | ||
| Nov | 67 | 48 | -28.36% | ||
| Dec | 64 | 48 | -25.00% |
Monthly unit sales, condos and townhomes
| Month | Sales 06 | Sales 07 | Sales 08 | 07 to 06 | 08 to 07 |
| under 600k | |||||
| Jan | 304 | 146 | 87 | -51.97% | -40.41% |
| Feb | 253 | 159 | 129 | -37.15% | -18.87% |
| Mar | 352 | 232 | -34.09% | ||
| Apr | 413 | 239 | -42.13% | ||
| May | 376 | 308 | -18.09% | ||
| June | 307 | 292 | -4.89% | ||
| July | 334 | 253 | -24.25% | ||
| Aug | 297 | 208 | -29.97% | ||
| Sep | 275 | 186 | -32.36% | ||
| Oct | 247 | 206 | -16.60% | ||
| Nov | 201 | 175 | -12.94% | ||
| Dec | 233 | 126 | -45.92% | ||
| over 600k | |||||
| Jan | 27 | 11 | 14 | -59.26% | 27.27% |
| Feb | 23 | 8 | 15 | -65.22% | 87.50% |
| Mar | 23 | 18 | -21.74% | ||
| Apr | 22 | 11 | -50.00% | ||
| May | 28 | 11 | -60.71% | ||
| June | 22 | 15 | -31.82% | ||
| July | 11 | 21 | 90.91% | ||
| Aug | 16 | 14 | -12.50% | ||
| Sep | 9 | 29 | 222.22% | ||
| Oct | 21 | 21 | 0.00% | ||
| Nov | 8 | 11 | 37.50% | ||
| Dec | 12 | 11 | -8.33% |
Technorati Tags: Charleston real estate, Charleston real estate market trends
Earth hour, March 29, 2008 8PM
March 29, 2008 | Leave a Comment
Turn out the lights for one hour at 8PM tonight for Earth hour.
Technorati Tags: Earth hour, global warming, energy conservation
A physical for your home?
March 28, 2008 | Leave a Comment
I was talking with one of my clients today about a few requested repairs to be made in order to close the sale of his house. He’s lived there for about 15 years and has always taken good care of his home, he’s added some nice upgrades and fixed anything that broke. But when all is said and done, that’s reacting to problems rather than being proactive.
And as I was describing that all homeowners probably do pretty much the same thing as him, I used the analogy that most people visit their doctor and have a physical or checkup on an annual or semi-annual basis. I suggested that most homeowners would be well served to get their home checked out at least every 3 years by a home inspector so that any problems that were lurking out of sight could be addressed before they became major issues, kind of like preventative medicine.
What do you think about getting a physical for your home.
Technorati Tags: Charleston real estate, home inspections
OFHEO vs. Case-Shiller, a primer
March 27, 2008 | Leave a Comment
The big news over the past few days was the media frenzy reporting housing price declines nationally but confusing many is why the Case-Shiller index showed greater declines than the index from the Office of Federal Housing Oversight (OFHEO).
In a nutshell, OFHEO tracks sales and refinancing securitized by Fannie Mae and Freddie Mac while Case-Shiller tracks sales including jumbo loans and subprime loans but focuses on the largest housing markets in the country.
Because Case-Shiller focuses on the largest housing markets in the country and because many of those markets are showing the largest declines as they showed the largest appreciation in past years, the index is more volatile. Additionally, the luxury housing market has been weaker than the mid priced market due to a higher rate spread for non conforming loans.
As I’ve pointed out on a number of occasions, the Charleston real estate market has held up very well during the current housing correction. Having moved here from Charlotte NC a number of years ago, I find similarities between the two cities in good job growth and significant inward migration from other cities around the country. Charleston also benefits as a retirement destination. You’ll note that Charlotte is the best performing city measured by the Case-Shiller index and that can comparably describe housing market trends in the Charleston real estate market.
Click here for an excellent primer from the WSJ.
Technorati Tags: Charleston real estate, Case-Shiller Index, OFHEO
Deceptive mortgage practices
March 25, 2008 | Leave a Comment
An example of a rather deceitful ad disguised as a news article.
A couple of points. The Fed rate cuts have nothing to do with long term mortgage rates and in fact, on several occasions when the Fed cut the Fed Funds rates, both 10 year Treasury Bonds and mortgage backed securities (what mortgage rates are actually based on) were actually higher.
The real monthly payment for a $180,000 mortgage is approximately $1080 for principal and interest at a fixed 6% interest rate. Don’t forget to add approximately $150 to $200 per month for insurance and taxes for a total payment of approximately $1250.
$699 could be your payment for the first month or possibly the first year but certainly not for the life of the loan. Don’t be fooled into thinking you can buy a $180,000 home for $699 per month and don’t forget, you need good credit, your income must be verified and a down payment is helpful.
This type of deceptive advertising is especially shocking today considering the subprime mortgage meltdown and the corresponding credit crunch. If you are interested in buying a home in the Charleston real estate market, I know several very good, reputable lenders who can offer you the best possible loan rates and will thoroughly review the terms of the loan with you.
Technorati Tags: Charleston real estate, online mortgage ads, mortgage lenders
Happy Easter
March 23, 2008 | Leave a Comment
Happy Easter.
Did you know that if you aren’t 95 years old, you have never celebrated Easter this early in the year.
I hope you and your family enjoy a wonderful day.
The chicken or the egg
March 20, 2008 | Leave a Comment
… which comes first, finding a house or finding a mortgage.
One of my listings went under contract the other day and another agent called to show the house later that day. Of course, he was told by the service that handles all agent showings in the Charleston real estate market that it just went under contract and he and his clients couldn’t view the home.
So he called me today and wanted to inquire as to whether it appeared to be a solid sale and I assured him, it looked very good, the buyer was preapproved for a mortgage and was putting a sizeable down payment on the home as well.
He said that his clients had been looking at the home but wanted to wait until they had their mortgage approval letter and I said that was very smart of them. He had to agree although he was frustrated because it appeared this would have been the perfect home for them.
So what do you do, do you start looking for homes for sale because that great home will slip away while you are obtaining mortgage approval or do you get your financing lined up and then search for available homes.
I suggest the 2nd choice, get your mortgage preapproval because if you find a home you like and want to make an offer, no buyer will take your offer seriously unless your offer is accompanied by a letter from your bank indicating you are qualified to purchase the home. It doesn’t take long and it makes you a credible buyer.
In this one case, they were a day late on this home but they’ll be able to make an offer on the next one they like (and there are plenty of nice homes for sale in the Charleston real estate market right now).
Technorati Tags: Charleston real estate, mortgage preapproval
What does buyer agency really mean
March 18, 2008 | Leave a Comment
A real estate agent does more than open the lockbox and the door to the home and point out the obvious, such as this is the laundry room, that’s a nice walk in closet in the master bedroom or isn’t that a spacious 2 car garage. A real estate agent offers a buyer knowledge of the area, negotiating expertise and experience in helping buyers avoid potential pitfalls when buying a home.
From the
- Present all offers in a timely manner
- Account for money or other property received on your behalf
- Provide an explanation of the scope of services to be provided
- Be fair and honest and provide accurate information
- Disclose “adverse material facts” about the property or the transaction which are within the licensee’s knowledge.
The agency disclosure brochure further states, “Unless or until you enter into a written agreement with the company for agency representation, you are considered a “Customer” of the Company, and the Company will not act as your agent. As a Customer, you should not expect the Company or its licensees to promote your best interests, or to keep your bargaining information confidential.” (emphasis added)
A buyer who chooses to become a client by entering into a written agency agreement can expect the real estate Company to provide the following client level services:
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accounting
- Reasonable care and skill
“Client level services also include advice, counsel and assistance in negotiations“. (emphasis added)
Technorati Tags: Charleston real estate, South Carolina real estate agency, buyer agent, buyer representation
Clean up, condition matters when selling your home
March 17, 2008 | Leave a Comment
I was showing homes to a buyer who is relocating to the Charleston area and the only homes that were of interest were those that were clean, uncluttered and in apparently good condition.
Interestingly, her phone rang while we were looking at one house and it was her real estate agent back home wondering if her current home could be shown later in the day. She responded, “of course, but please tell the potential buyers that I’m out of town and couldn’t make the house just perfect for the showing.”
If you want to sell your home, learn from this buyer’s perspective.
Condition matters.
Technorati Tags: Charleston real estate
Foreclosure data, February 2008
March 13, 2008 | 1 Comment
There is a lot of interesting foreclosure data from RealtyTrac.
First of all, closer to home, South Carolina has far fewer foreclosures than much of the country both by the number of homes and the rate of foreclosure while the media is almost obsessed about the problem and the government is trying to figure out how to help those in trouble.
South Carolina is ranked 37th of the 50 states in foreclosure rates with 698 properties entering some stage of the foreclosure process last month with one foreclosure for every 2762 households in February. In the United States, there were 223,651 homes that entered some stage of the foreclosure process in February which was up 60% from February 2007 with one foreclosure for every 557 homes.
Which states have been most impacted by foreclosures by numbers of homes and and by the foreclosure rate.
Two states, California and Florida have 38.4% of all the foreclosure activity in the United States in February. Five states, adding Texas, Michigan and Ohio to California and Florida have over 50% of all foreclosure activity and ten states, adding Arizona, Illinois, Georgia, Colorado and Nevada to the above mentioned states comprise over 70% of all the foreclosures in the United States.
On a percentage rate basis, Nevada leads in the percentage of all homes in some stage of the foreclosure process followed by California, Florida, Arizona and Colorado. Interestingly, because of population disparity, Texas has a low rate with a lot of foreclosures while Nevada has a high rate despite fewer actual foreclosures.
Clearly, there is a problem. The combination of rapid escalation of home prices in some states that caused borrowers to overextend themselves and ultimately find they could no longer afford the mortgage payments and the economic woes causing job losses and outward migration in the industrial Midwest have negatively impacted the housing markets in those states.
If you are looking for distressed property sales in the Charleston South Carolina real estate market, there are some (sadly, there have been a couple in my neighborhood) but the Charleston real estate market does not resemble anything like the media might be reporting. If you are looking to only buy distressed properties, you really have to look to some of the above named states. Here are the complete statistics for foreclosure activity for February from RealtyTrac.
Technorati Tags: Charleston South Carolina real estate, foreclosure data, RealtyTrac
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