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.

Takeaway Points:

1. Due to the low level of listings and continued high demand for homes, prices will continue to trend upwards.
2. 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.
3. 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.
4. Buyers must be willing to negotiate and compromise on repairs and on other terms in order to be competitive.
5. 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.

CLICK HERE >>> Get an instant price update on your home.

(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,

Vito Boscaino

Mobile: 614.571.9054
Email:   vitoboscaino@gmail.com
http://www.HomesAndCondosCharleston.com

If you live in the Charleston area, you have probably heard of Wando High School, the only public high school in Mount Pleasant as well as the largest schools in Charleston County School District. Originally located at the intersection of Mathis Ferry and Whipple Road, Wando High School moved to a 100-acre campus in upper Mount Pleasant in 2004, next door to the Carolina Park development. More than 3,450 students attend Wando High School and the schools has received many accolades over the years in several areas, from academics to music.

For example, as of the 2013-2014 school year, about 103 students were named AP scholars. Wando was also selected as a PRIME school, which is a national honor given to just 25 institutions with above-average instructors, engaged students, exemplary curriculum and support from the staff and surrounding community. Meanwhile, the Wando marching band has been awarded eight state championships in a row, not to mention finishing in the top 12 of the Bands of America Grand National Championship.

Academically speaking, students at Wando are asked to choose a "cluster of study" as part of their framework of curriculum. The main framework is designed to help Wando students experience an efficient transition from high school into either the real world or post-secondary education. Different clusters of study include "majors' such as Science, Technology, Engineering and Mathematics; Agriculture, Food and Natural Resources; Transportation, Distribution and Logistics; plus many others.

Students are asked, with the help of counseling, to choose an area of study by their sophomore year at Wando - though they are not forcibly committed to that program of study and can change at any time. However, this does encourage students to focus their courses and electives on a specific future goal. parents too, are encouraged to become involved with the programs of study by offering their time as volunteers. Tutors, field trip guides and guest speakers are needed regularly.

For students who are looking for real-world experience, the Wando Warrior Store offers such an opportunity on campus. The store sells items such as clothing, snacks and school supplies. Academic credit, rather than monetary compensation, is awarded to students for their hard work.

Though many of the Wando students are fortunate to have what they need in terms of clothing, school supplies and other items necessary during their educational journey, some are not. The Wando Dreamweavers organization is an in-house charity funded by parents, community members and administrators, for the benefit of these less fortunate students. Dreamweavers is now in its fourth year and has made quite a difference for students in need.

And of course, the students at Wando have a unique relationship with the East Cooper community. Drive around Mount Pleasant, Isle of Palms or Sullivan's Island during football season and you'll see the phrase "Go Warriors!" displayed on the signs of local businesses.

Recently I was responding to some fellow real estate professionals who were deliberating as to whether the market we are currently in in Charleston is an analog to where the market here was in 2008. Here are my thoughts:

The market we are in is nothing like 2008. The only significant change on the demand side is the lack of "First Time" home buyers as many have chosen to rent or have no other option but to rent, or are continuing to live in their parents homes for as long as possible. This is due to much higher levels of student debt combined with poor job opportunities, leading to insufficient opportunities to obtain credit.

New home building rates are way, way below where builders were in 2008. The national rate of new home production of +/- 580,000 annual units is less than half that of the rate of 1.39 million units that represented the high point for new home production in 2005.

Mortgages are definitely much more difficult to obtain now versus what was happening in the market in the 2003-2008 time frame. Rates are very, very low by all historic measure and are likely to remain that way for the foreseeable future. The driver of price increases has fundamentally been a lack of resale homes in inventory, (i.e., demand exceeding supply, therefore prices increase). The better question might be why aren't more existing homes coming up for sale?

Also rental rates have been increasing at a very steep rate for the last several years. It is entirely predictable that the rate of growth for rental rates will slow and plateau. This is due to a combination of increasing supply of rental units (i.e., new construction and conversion of SFR owner occupied units into rentals) along with the fact that rental rates have gotten to the point where it is now much more logical once again to view the purchase option as a better financial opportunity than to rent. Even considering the "risk of ownership" versus the "safety" of renting, that many millennials claim colored their view of home ownership in a negative way.

My perspective is that going forward, we will see more of a balanced market than a full conversion to a "Buyers Market". I typically view Sellers in this market to be in two groups: The first are people who need or really want to sell and are pragmatic about how they position their property for sale. The second group are sellers that are effectively indifferent to actually selling, will put something on the market at a high price point, testing to see if they can get anyone to bite on it. But they may not really care if the property sells or doesn't sell unless they get their over-inflated price (generally investors, second-home owners etc.).

I do think a softening in the rate of growth of prices will actually stimulate longer-term demand from buyers who have been waiting on the sidelines (a lot of baby-boomer retirees and people who have flexibility in their decision making, work-from-home etc.), so I see a bit of a see-saw effect between the pure seller market and the pure buyer market.

Net/net I believe demand for housing in the Charleston metro area will continue to be strong for the foreseeable future, assuming no significant negative events on the macro-economic front. Of course this will encourage more agents to join the trade, and will put pressure on each of our opportunities to generate Sales/GCI.

But no one ever said this was an easy business. What we really need to drive revenue and profit growth at an individual level is for the industry to increase the barriers to entry to becoming an agent and make it more difficult to remain an agent. That is the fundamental reform that this industry needs.

Vito Boscaino

Mobile: 614.571.9054

http://www.HomesAndCondosCharleston.com

Email: vitoboscaino@gmail.com

Friends and clients,

Summer is here and the weather in Charleston is beautiful, 91 degrees and sunny, perfect beach weather! Since you 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 residential real estate in Charleston is doing in 2016.

Year-to-date sales have remained quite strong versus the same period in 2015, up 9% as buyer demand continues to be robust, and the average sales value also continues to increase, up 4.3% year-over-year. While Sellers are controlling the market, Buyers continue to fight headwinds as inventory levels continue to decline rather significantly versus last year: Months Supply of Inventory, a key metric that measures the number of homes available for sale against actual sales is down 32.5% year-over-year, from 5.2 months to 3.5 months.

The combination of these factors means buyers have to be prepared to move quickly when they are searching for a home, and they also have to be prepared to see competition from other buyers in the form of multiple offers being submitted on properties. As inventory remains tight and demand is high, prices will continue to rise.

In my personal opinion, these dynamics are not likely to change any time soon, as buyer interest in the Charleston area will continue to be strong for the foreseeable future, and it would appear that owners of property are comfortable remaining where they are, which means inventory levels will not see any significant relief. New development activity will continue to increase on the the outskirts of the Charleston area, but for those seeking to be close to the Peninsula or beaches, your options for new housing product will remain slim. 

Here is an excerpt from the Charleston Trident Realtors Association:

"CHARLESTON, SC— (July 11, 2016) 1,919 homes sold during June in the region at a median price of $250,000 according to preliminary data released today by the Charleston Trident Association of Realtors® (CTAR). In June 2015, 1,705 homes sold at a median price of $240,000. This data reflects a 12.5% increase in sales volume and 4.2% growth in median price, comparing last June to this June.

Year-to-date figures show 8,648 homes sold in 2016 at a median price of $239,000 in the region. Comparing 2015 figures to 2016 thus far, year-to-date sales volume has increased 8.9% and median price has grown by 8.3%.

Inventory has declined by 12.5% over the last 12-month period, with 5,433 homes listed as “active” for sale in the Charleston Trident Multiple Listing Service (CTMLS) as of July 11.

What this means for you: Prices will continue to climb, which means the purchasing power that you have will continue to decline.

As a buyer, you will have the maximum purchasing leverage for yourself at the present time when you consider the combination of current interest rates, and the expected trend for continued increases in home prices. If nothing else you should be getting pre-approved by a mortgage lender and actively identifying properties of interest. If you need local lender referrals, please let me know as I have some great lenders identified that have done excellent work on behalf of previous clients.

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

As for Sellers, Charleston remains a strong sellers market, and assuming the economy remains stable, I don't see this dynamic changing in the near-future.

Your home will sell for its maximum price in 2016. Not many homes are for sale in Charleston – inventory is very tight.

As you know, home prices in many Charleston area neighborhoods have gone up considerably in 2016, and there’s a strong chance your home is one of them.

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.

CLICK HERE >>> Get an INSTANT PRICE UPDATE on your home

(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 843.779.6054 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 Realtor,

Vito Boscaino

Mobile: 843.779.6054 / 614.571.9054
Email:   vitoboscaino@gmail.com
http://www.HomesAndCondosCharleston.com