Friends and clients,
Well the heat finally broke and we have some fall-like weather to enjoy (+/-70 during the day and +/-50 at night). Since you have previously indicated an interest in real estate in the Charleston area, I wanted to take a moment to bring you up-to-speed on how the market has been doing in Charleston as we get closer to the end of the year.
Home sales remained steady during the month of October, even after dealing with Hurricane Matthew which effectively caused a loss of at least a week of business activity in the market area. It is expected that the bulk of this activity will roll into the November results. Sales for the month were 1,273 up 0.2% versus October 2015, and 14,989 units YTD, up 8.8% versus 2015.
Months Supply of Inventory is a very important ratio. For the month of October it stood at 3.5. Historically, when this metric falls below 6.0 it is considered to be a Sellers market. 2016 has been a strong sellers market for the entire year and October reflects that this trend is continuing.
The inventory of homes for sale was 5,285 for the month, down 19.1% versus the same month in 2015.
For Sellers, days on market is a reflection of the demand for housing versus the currently available inventory. For the month, Days On Market was calculated at 53 days. This is down 33% versus the same month in 2015, and on a year-to-date basis came in at 59 days, down 1.7% versus 2015.
A result of the low inventory levels and continued high demand is an expansion of the Average Sales Price from $299,631 in 2015 to $333,058 in 2016, an increase of 11.2% for the month. On a year-to-date basis, values are up 5% versus 2015.
As inventory levels remain tight and demand for homes high, sellers are receiving a higher percentage of their list sales price. For the month, the percentage closed at 96.3%, up 0.5 percentage points versus October of 2015. On a year-to-date basis, the percentage was 96.5% up 0.6 percentage points.
- Due to the low level of listings and continued high demand for homes, prices will continue to trend upwards.
- Competition for well positioned homes will be intense with multiple offer scenarios likely. Buyers should make certain that they have a loan pre-approval letter or Proof of Funds statement (for cash offers) readily available to be included with any offers in order to be competitive.
- As well, Buyers will need to be able to make quick decisions when they find a property they like, as any delays in submitting an offer will likely mean that the home will go to someone else who moved more quickly.
- Buyers must be willing to negotiate and compromise on repairs and on other terms in order to be competitive.
- Sellers have an excellent opportunity to capture a good price for their properties, and to move their properties quickly, if they are priced correctly given the condition of the home and other critical factors that buyers evaluate in understanding the value proposition being offered.
BUYERS - If you need to update your search parameters, or just get an update on your search results, you can search all the properties in the Charleston area by clicking right here: CHARLESTON HOMES
SELLERS - I recommend you check the current market value of your home. I pay to get access to all the local MLS data and you can get it for free on my website.
(You get access to real local MLS data for determining current value - it’s free for you)
Enter your property address and you’ll get a recommended selling price range for your home based on the recent sales of your neighbors.
You may be very surprised at your price – it’s likely to have gone up!
Now this website tool is just an estimate. However, if you’re serious about selling your home, I can give you a very accurate asking price.
Call me at 614.571.9054 or reply to this email with details of your home.
Tell me about your kitchen, bathrooms, home improvements, and all the things you love.
I know what a buyer will pay for it today.
And of course if you’re not interested in selling your home, rest easy knowing we are in a healthy real estate market with appreciating prices.
If I can ever be of service to you buying or selling a home, I’m here.
Have a wonderful week.
Your local Charleston area real estate advisor,