Mount Pleasant Home Sales Up Significantly in March and April

During March and April, there have been 306 Single Family homes go under contract in Mt. Pleasant.  This is a 49% increase over the same period last year!!  In the condo/townhome market, the news is even better…..109 condos/townhomes have gone under contract during the last two months.  This is a 73% increase over the same period last year!!  The recovery of the condo/townhome market has been lagging the single family home market for some time….This could be a sign that the recovery for this segment is finally underway.

Months of Inventory – a “True Picture” of the Market…..

While home sales are up this spring, one of the best ways to measure the current state of the Mount Pleasant real estate market is to review inventory levels, specifically “months of inventory”.  This gives us a good idea of where we can expect prices to go in the short term.

So, what does “months of inventory” really mean?  If we take a look at historical real estate sales patterns (typically the previous 12 months of sales) and compare that to the current number of homes on the market, we can then calculate the “months of inventory”.  For example, if 36 homes have sold in the last 12 months and we currently have 24 being offered for sale, then we have 8 months of inventory.  It will take 8 months to deplete the inventory we currently have, assuming we have the same rate of sales going forward that we have had for the last 12 months.

The chart below shows the “months of inventory” for the Mount Pleasant Single Family home market, broken down by price range…..

Generally, 6 months of inventory represents a fairly balanced real estate market, one that doesn’t give a significant advantage to the buyer or seller.  In a balanced market, prices generally remain stable, with little fluctuation.  While the overall “months of inventory” for single family homes is slightly above 6 months, certain price ranges are faring much better and others are faring much worse.

Mount Pleasant Home Sales Above $500K – More Price Pressure

As you can see from the chart, the months of inventory number rises significantly as you move up the price scale.  The result is that it is much harder to sell a home in the higher price ranges with the inventory levels well above 6 months.  For example, with 32 months of inventory for homes priced above $1M, we can typically expect only one home in this price range will sell every 2.6 months!!

With this much inventory, there will be a lot of pressure on sellers to reduce their prices in order to snag the few buyers that are out there in that price point!!  There is some good news however…..NOW is the time to sell as there are more buyers in the market right now than at any other time during the year!!

Please give us a call if you have any questions about this post or need other specifics about the Mount Pleasant real estate market.  If you are thinking of selling, please contact us to get a market analysis for your home and to learn more about our marketing programs.

Paige and I have been two of Mount Pleasant’s top selling realtors during the past 10 years.  We have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold.  Finally, please feel free to check out our web site….We have a lot of great information on the Mount Pleasant market, including great pages on various neighborhoods.  Have a great week and we hope that you continue to enjoy all that Mount Pleasant has to offer!

Since March 1st….

• 25 I’On homes have come on the market
• 4 of them have already gone under contract
• 10 additional homes have gone under contract (for a total of 14)
• 6 homes have closed at an average selling price of $250/square foot (Click here to see all recent I’On home sales)

There are currently 21 I’On homes under contract, pending closing.

I’On Inventory Continues to Provide a “True Picture” of the Market…

As most of you know, I use “months of inventory” as a barometer for what is happening in the I’On real estate market.  In order to factor in the seasonality of our market, I determine the number of homes sold in various price ranges during the last 12 months.  Based on that “run rate” of sales, I compare it to the current inventory and then calculate the months of inventory by price range.  Generally, 6 months of inventory represents a balanced real estate market, one that doesn’t significantly give the advantage to either the buyer or seller.  In order to really analyze a market, it is important to break it down into meaningful components.

Below is the current “months of inventory” in I’On by price range.  Assuming a selling rate equal to the last 12 months of sales activity, this is how many months it will take to deplete the current inventory…..

What is striking when looking at this chart is the difference between the various price ranges in our neighborhood, particularly the months of inventory for homes price above $1M.  There have been A LOT of $1M+ I’On homes come on the market in recent months, but the pace of sales has not picked up to match the new inventory!  For example, on average, only one home priced above $1M will sell in the next 2.4 months!! If you are trying to sell a home in this price range, I encourage you to talk with your realtor about how to make sure your home is the one that sells!!

To put all of the price ranges in perspective, below is what I’On home sellers can expect in terms of the average time required to sell a home (based on the current inventory and the last 12 months of sales data).

Average length of time required to sell by price range….

• Below $500,000 – one of these homes will sell every .83 months (less than a month)
• $500,000  to $750,000 – 2 of these homes will sell per month
• $750,000 to $1M – 1 of these homes will sell per month
• Above $1M – 1 home will sell every 2.4 months
• Overall – 4 homes will sell per month

The key question sellers need to ask is…..“How do I make sure my house will sell in the next 30-60 days during the peak season?”  Keep in mind that the spring and early summer season is the best opportunity to sell as there are many more buyers in the market during this time of year.  It is likely that more homes will sell per month than the averages stated above, but as we move into the late summer and into the fall, these numbers will likely drop off to a pace that is significantly slower.  So NOW is the best time to move your house if you are an I’On home seller!  In order to do so, it will be imperative for you to have your home in top notch condition and priced “to sell”.

I’On Homes “Priced to Sell” are Selling!!

What are I’On home sellers asking for their homes and what are they getting?  It is very interesting to compare pricing for the I’On homes for sale (not under contract) with those that are under contract, particularly in terms of asking price/square foot.  For example, the average asking price per square foot for the homes that are on the market is $280.  For the 21 homes that are under contract, the average asking price per square foot is $244.  To clarify, this is not the selling price per square foot (as we won’t know that until they close).  This is the asking price per square foot.  This is a clear indicator that I’On homes priced more aggressively are generally the ones getting sold in this market….across all price ranges.  There are more buyers, but they are all still looking for value when making their purchase decisions.

So…..Is the I’On Real Estate Market Improving?

Everyone I talk to lately tells me that they “hear the market is getting better”.  There is no doubt that it is…..but what does “better” mean?  It likely means different things to different people!!  In terms of activity, there is clearly more buying activity than we have seen in a long time.  This is helping to bring the “months of inventory” down in virtually every price range, which is the first (and most important) step in returning to a more balanced market. In terms of pricing, there has been stabilization in the last year and a half, but not much in the way of price appreciation.  This will not occur until more progress is made on depleting the inventory, particularly in the higher price ranges.  So, yes….the market is improving, but pricing remains a challenge, particularly for homes priced above $500,000.

Questions?  Call Me!!

Please give me a call if you have any questions about this post or need other specifics about the I’On real estate market.  If you are thinking of selling, please contact me to learn more about my marketing program for your home.  I have sold dozens of homes in I’On over the years and have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold.  Have a great week and I hope that you continue to take advantage of all the special activities and events that I’On has to offer!!

Mount Pleasant Single Family Homes:

• Number of Homes Sold YTD – 100 – up 4.2%
• Median Price of Homes Sold – $341,500 – up 1.9%
• Average Selling Price/Square Foot – $155 – up 5.8%

Mount Pleasant Condos and Townhomes:

• Number of Homes Sold YTD – 32 – up 3.2%
• Median Price of Homes Sold – $124,000 – down 16.5%
• Average Selling Price/Square Foot – $116 – down 5.8%

Mount Pleasant Sellers Now Receiving 92% of Asking Price at Closing…

While the condo/townhome market continues to lag the overall market, it is important to note that we have seen significant improvements in Mount Pleasant real estate market during the last 2 years.  For example, sellers are now receiving a greater percentage of their asking price as compared to a couple of years ago.  At the peak of the market in May of 2005, sellers were receiving 99% of their original asking price at closing.  This dropped to a low of 88% two years ago but has since rebounded to 92%.  The chart below shows the trend over the last several years for this statistic.

Mount Pleasant Homes Are Selling Faster…

In addition, sellers are seeing significant improvement in how long it takes to sell their home.  The average number of days on market is down 24% to 109 days for the typical Mount Pleasant home.  It is important to keep in mind that this number can vary significantly based on many factors such as asking price, location, price range, neighborhood, etc.  But the trend is positive news for sellers and as our market continues to improve, this metric should as well.

Finally, the inventory levels remain about the same as they did when we posted our last Mount Pleasant update in January.  We expect that we will see an increase in the number of homes coming on the market during the next couple of months as we enter the busy spring selling season.  We will provide you with another update next month as we begin to see what trends the spring will bring.  In the meantime, if you are thinking of buying or selling in Mt. Pleasant, please check out our Mount Pleasant page on our web site…It has a very easy way to search for single family homes or condos by price range.

Please give us a call if you have any questions about this post or need other specifics about the Mount Pleasant real estate market.  If you are thinking of selling, please contact us to get a market analysis for your home and to learn more about our marketing programs.  Paige and I have been two of Mount Pleasant’s top selling realtors during the past 10 years.  We have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold.  Have a great week and we hope that you continue to enjoy all that Mount Pleasant has to offer!

• 138 Ionsborough Street – $789,000 ($242/square foot)
• 70 Hospitality – $799,000 ($208/square foot)
• 62 Eastlake – $1,250,000 ($305/square foot)
• 15 Robert Mills – $1,275,000 ($255/square foot)
• 8 Edenton – $599,000 ($272/square foot)

In addition to these recent contracts, 2 homes have closed since January 1st.  Below is the selling price for each along with the sold price/square foot:

• 139 Ionsborough Street – $837,500 ($234/square foot)
• 143 Ionsborough Street – $600,000 ($201/square foot)

To see details on all I’On homes that have sold in the last 12 months, click here.

I’On Inventory Continues To Fall…

This activity has resulted in further reduction in the number of I’On homes for sale.  We currently only have 37 homes on the market in I’On which is the lowest level of inventory we have seen in many years.

Is This the Market I’On Home Sellers Have Been Waiting For?

As I have mentioned in previous posts, reduced inventory along with higher demand is going to be the key to price stability and ultimately, a return to price appreciation.  With inventory levels the lowest in years and demand picking up, the timing could be good for I’On home owners who have been “sitting on the fence”, waiting for the market to stabilize before putting their home on the market.

As always, certain price ranges are fairing better than others, but overall, I’On home prices have seen some stabilization in the last 18 months, as the average selling price per square foot have been hovering around $250 throughout that period.  Again, that metric is for the “overall” I’On real estate market and not specific to certain price ranges.  However, it is a great sign that we are experiencing some price stability for the broad I’On real estate market.  I can’t predict where prices will go in 2012, but one thing is for sure…..less inventory and higher demand is very welcome news for I’On home sellers!!

Thinking of Selling or Just Have Some Questions?

Please give me a call if you have any questions about this post or need other specifics about the I’On real estate market.  If you are thinking of selling, please contact me to learn more about my marketing program for your home.  I have sold over 50 homes in I’On over the years and have an intimate knowledge of this community, what buyers are looking for, and how to get your home sold.  Have a great weekend and I hope that you continue to take advantage of all the special activities and events that I’On has to offer!!

Mount Pleasant Homes Below $500K – Prices are Increasing

Overall, the market for Mount Pleasant single family homes priced below $500,000 is quite strong as we currently have only 3.7 months of inventory in that price segment.  As we move into the 2012 real estate market, the lower inventory levels in this price segment should provide us with some price appreciation.  While the price appreciation will probably be rather small (the days of 15-20% per year are over!!), it is good news for Mount Pleasant home sellers.  The chart below shows a further breakdown for months of available inventory by price range…

As you climb the price scale, it becomes much more challenging for sellers.  As you can see from the chart, the months of inventory for homes above $500,000 is significantly higher.  It is not likely that we will see any price appreciation in these segments until we see a significant increase in demand and lower inventory levels.

Mount Pleasant Condo Market – Improving, but Lags Single Family Market

In contrast, the Mount Pleasant condo market is not rebounding quite as quickly as the single family home market.  For example, there are 7.7 months of available inventory for condos, 2 months more than we have for single family homes.  In addition, the luxury condo market is really struggling as there are 29.3 months of inventory for condos priced above $500K versus only 7.1 months for condos priced below $500K.  The chart below shows a comparison between the single family and condo inventory levels…..

What’s Ahead in 2012 for the Mount Pleasant Real Estate Market?

As we move into the spring selling season, we will likely continue to see reasonably strong demand for homes priced below $500,000 in Mount Pleasant.  However, asking price and condition of the home will still be very important in order to obtain offers.  For homes priced above $500,000, sellers will continue to feel some price pressure until the inventory levels fall back in line with historical “sellers market” levels (usually less than 6 months of inventory).  Many of the more expensive homes will sell this year, but buyers can still afford to be very choosy when making their purchase decisions as inventory far outweighs demand right now.

If you have any questions about the Mount Pleasant real estate market or if you have any other real estate needs, please feel free to contact myself or Paige.  We are a full service real estate group that has been focused on helping Mount Pleasant buyers and sellers for more than 10 years.  Also, please feel free to visit our Mount Pleasant Real Estate website to view homes for sale in our community.  In the meantime, have a great month and stay tuned for another update in February.

The I’On real estate market was relatively flat in 2011 when compared to 2010, both in terms of the number of I’On homes sold as well as pricing.  There were 52 I’On homes sold in 2011 compared to 51 homes sold in 2010.  For a complete list of these homes, along with selling prices and other details, please click here.  Below is a summary of 2011 activity with comparable activity for 2010.

2011 Activity:

• I’On Homes Sold – 52
• Median Sales Price – $702,000
• Median Selling Price/Square Foot – $238
• Average Sales Price – $747,346
• Average Selling Price/Square Foot – $250

2010 Activity:

• I’On Homes Sold – 51
• Median Sales Price – $737,500
• Median Selling Price/Square Foot – $250
• Average Sales Price – $756,666
• Average Selling Price/Square Foot – $250

I’On Following the “Smaller Home” Trend…

The most significant change from 2010 was that the median selling price in 2011 was down 4.8%.  This is partly due to continued price pressure, but it’s also a result of a nationwide trend that has many baby boomers preferring smaller homes on smaller lots.  This trend has also been very apparent in the I’On market in recent years.  As you can see from the chart below, the last three years have seen a significant shift in the percentage of I’On homes sold below $500,000.  I’On builders have responded to this trend and have built several small “cottage” style homes in recent years and they’re selling!  An interesting note…..While it is not shown on the chart, there were no I’On homes sold below $500,000 in 2008.

What Does 2012 Hold for the I’On Real Estate Market?

As we move into 2012, there is some encouraging news for sellers.  As of today, we only have 40 I’On homes for sale.  This is the lowest level of inventory we have seen in many years in I’On.  Unless demand falls off dramatically in 2012, the lower inventory levels should translate into fewer “days on market” and even more price stability.  I do expect inventory levels to rise over the next few months as many I’On homeowners will be putting their homes on the market as the spring selling season approaches.  However, things can change quickly in this industry, so stay tuned for regular monthly updates……

If I can answer any questions about this I’On real estate post or if you are thinking of buying or selling an I’On home, please contact me.  The I’On real estate market has been the primary market for my real estate business for many years and I offer a full range of services to assist you in any way I can.  I hope you all have a Happy New Year and continue to enjoy the many events and activities  I’On has to offer!!

In addition to the 10 homes that went under contract, there were 5 additional homes sold (closed) since my last report, bringing the total number of homes sold this year to 45.  Below are the details on the I’On real estate market through today as compared to 2010.

2011 (through December 9th):

• Homes Sold in I’On – 45
• Median Price – $720,000
• Average Selling Price/Square Foot – $250

2010 (through December 9th):

• Home Sold in I’On – 48
• Median Price – $739,250
• Average Selling Price/Square Foot – $251

I’On Real Estate Market….Steady compared to last year

As you can see, 2011 has been a relatively stable year compared to last year.  The median price for homes is down just 2.6% while average selling price/square foot is flat.  It is very hard to say how 2012 will play out, particularly on the higher end of the price scale (where there are fewer buyers).  But starting the year off with the lowest inventory we have had in I’On in many years should at least set the stage for a fast start to the year.

Currently, there are 44 I’On homes for sale.  Below is a chart that breaks down the number of I’On homes for sale by price range as well as the current number of months of available inventory we have in each price range.  This is based on the rate of I’On home sales over the past 12 months….

Still Some Challenges on the High End of the I’On Market…

The higher price ranges tend to move the slowest, not only in I’On but in all parts of the Charleston market.  There simply are not enough buyers out there right now to work through the inventory in these price ranges.  However, significant progress has been made in the last year.  We currently have 11 months of available inventory in the I’On real estate market.  Sellers (particularly those in the lower half of the price scale) should be reasonably optimistic heading into the new year.

If I can answer any questions about this I’On real estate post or if you are thinking of buying or selling an I’On home, please contact me.  I have been focusing on the I’On real estate market for many years and I offer a full range of services to assist you in any way we can.

I hope you all have a wonderful holiday season and enjoy and all of the events I’On has to offer!!

Some segments of the Mount Pleasant real estate market have not fared as well in 2011 however.  Homes priced above $500,000 are experiencing much longer “days on market” and sellers are continuing to feel price pressure when getting offers.

Overall Mt. Pleasant Real Estate Market is “Balanced”

The real estate industry generally considers 6 months of available inventory as a “balanced market”.  This means that neither the buyer or seller has a significant negotiating advantage when buying or selling a home.  Inventory levels below 6 months typically suggest a market that is more advantageous for the seller and anything above is considered more of an advantage for the buyer.  As you can see from the chart below, the overall Mt. Pleasant real estate market is now “balanced” as there is approximately 6 months of inventory available for single family homes.

Mt. Pleasant Home Sellers Above $500K – Still in a “Buyer’s Market”

The chart also shows that for homes priced above $500,000, the challenge to sell is much more significant, particularly for sellers above $1M.  It is going to take some time for the more “pricey” segments of the Mount Pleasant market to see any significant price appreciation as we continue to work through the existing inventory.

If I can answer any questions about this Mt. Pleasant real estate post or if you are thinking of buying or selling your home, please contact me. My team offers a full range of services and we will be happy to assist you in any way we can.  Enjoy the fall season and all of the wonderful events that Mt. Pleasant has to offer!!

• I’On Homes Sold in 2011 – 40
• Average Selling Price/Square Foot – $253
• Median Sales Price – $715,630

In 2010, the numbers were:

• I’On Homes Sold in 2010 – 45
• Average Selling Price/Square Foot – $252
• Median Sales Price $741,000

I’On Homes For Sale at a YTD Low

• 19 Saturday Road – $1,050,000 – $230/square foot
• 71 Robert Mills Circle – $699,000 – $309/square/foot
• 50 Serendipity – $665,000 – $233/square foot

In addition, four more I’On homes have gone under contract since my last report. These homes have not yet closed, so the prices you see for each are the asking prices:

• 31 Mises Street – $409,900 – $332/square foot
• 54 Joggling Street – $419,000 – $255/square foot
• 195 Ionsborough – $549,000 – $297/square foot
• 12 LeeAnne Lane – $699,000 – $222/square foot

I’On Home Prices Are Up 2.4% in 2011

Year to date, there have been 25 I’On home sales with an average selling price per square foot of $253.  Through this same date last year, there were 30 I’On homes sold at an average selling price per square foot of $247.  While the number of homes sold is down from 2010, the average price per square foot is actually up 2.4%!!  This isn’t much, but any improvement in this market is worth noting!!

While this is good news for the overall I’On real estate market, it is important to break the market down into meaningful price segments in order to get a more accurate picture of the current market.  The chart below compares the average selling price per square foot by price range YTD for 2011 and 2010.

Prices Increase for I’On Homes Between $500K  and $1M

As you can see from the chart above, the overall increase was due to some improvement in homes priced between $550K and $1M.  The biggest reduction was for homes sold above $1M.  As mentioned in previous I’On Real Estate Market Updates, there has been a surge in I’On home sales above $1m in 2011, but it has taken more aggressive pricing in order to achieve this.  Prices in this segment have dropped about 8% this year.

The chart below reflects inventory and YTD sales by price range represented by the percentage of the total.  For example, the number of I’On homes sold this year between $500K and $750K represents 40% of the units sold and the current available inventory in this price range represents 29% of all available homes in I’On.  This reflects a very active market in this price range!

In contrast, home sales in the $750K to $1M range are not faring nearly as well.  The current inventory in this price range represents 34% of all I’On homes for sale, yet only 16% of the sold homes this year come from this price range.  This is the most challenging “sub-market” in I’On and at $220/square foot so far this year, prices reflect the soft demand.

If I can answer any questions about this I’On real estate post or if you are thinking of buying or selling an I’On home, please contact me.  My team offers a full range of services and we will be happy to assist you in any way we can.  Enjoy your summer and all of the events I’On has to offer!!