Housing Market Stats

There are some very small signs that make the real estate market here in Charleston appear to be headed toward a recovery. However, I think they are too small to really make a difference. There is a lot of buying activity out there right now. A lot of that is due to the $8000 tax credit for first time home buyers, the lower prices, the low interest rates, and the large selection. Sadly, the $8000 tax credit will come to an end on November 30, 2009 and interest rates are probably going to head upwards for quite some time(maybe several years.) Proof of the buying activity, as always, is in the numbers. The Charleston MLS is only off 8% in the number of properties going under contract(contingents) versus the same period in 2008. In fact, the numbers for Sept-Dec ember of 2008 were so dismal, that I’m quite certain that 2009 contingent numbers will surpass those of 2008. It’s amazing, but the Charleston market will actually have more ratified deals in 2009 than in 2008. Yet, 2009 closed sales are 30% down versus the same period in 2008. The reasons that there is such a discrepancy between contracts ratified this year and the number of closed sales comes down to 2 things, appraisals and short sales. Appraisers are coming in much lower than the agreed upon purchase price and causing deals to fall through. Also, short sales and foreclosures are now above 20% of the deals being ratified and they can be a nightmare to close. We just had a short sale that we thought was only a couple of weeks from closing after a 3 month wait, only to get a call from Chase saying that they had lost all the paperwork and we would have to resubmit everything. Many short sales may never close. So, while there are plenty of buyers out there willing to purchase, many of the deals are falling through. Ultimately, I still feel that it will be at least 2 more years before this bottoms out and another 2 years before prices are just back to where they are now. Sellers should sell as quickly as possible to get the most for their home and buyers shouldn’t wait for prices to go lower since interest rates will be going up.