So, the data is in on last month’s real estate market here in June Charleston Market Update! There have been some small changes, so let’s go over a couple key take always from last month’s MLS results.

May MLS Activity

The first thing that jumps off the page in the June Charleston Market Update, is that in the price range under $600k. In this price range the market is contracting somewhat. Meaning more homes are selling than coming on the market. However above $600k, it’s the opposite. Even though this is not yet a significant trend or a number large enough to have a big impact but it is worth watching.

Second…is our List Price to Sale Price Ratio. Which is now for the entire MLS is now over 100%. Simply amazing! And the Medium Days On The Market in the June Charleston Market Update is still at 3 days!

Incredible.

June Charleston Market Update Conclusion

Right now, when you look at the numbers in the June Charleston Market Update, our market does not seem to be showing any signs of slowing down. If you’re a buyer in this market you understand this first hand. Many buyers are making offers and the successful ones are going for it and making it happen!

You just have to have some perserverance and you have to go after it agressively!

Reason to buy in this market.

Here are a few key points to think about when buying a home in this market!

1. Interest rates are still historically low, however inflation is here and prices on goods and services are rising and inflation will cause rates to rise! Anyone that goes to the gas pump, the lumber store or the grocery store can see it!
2. Keep in mind, when you look at the comps for a property you are looking into the past. In a rising market every home is going to look overpriced!
3. Every sale when it closes becomes the next comp. So whatever price you pay, your sale becomes the new benchmark for the neighborhood!
4. Your lender requires and appraisal. The appraisal is designed to protect the lender form giving someone a loan that has overpaid! The bank does not want to “over lend” you money, just in case they have to take it back from you! Which in turn protects you from overpaying.
5. Year over year homes have gone up in Charleston 20.8% according to the MLS. On a $400,000 house that’s $83,200.!
6. So if this continues, which it could, that $400k house from last year, next year may cost close to $600k! And interest rates will be higher! So waiting to pull the trigger could end up hitting you hard twice!
7. If the market does go down, keep in mind in real estate time heals any buying mistake as long as you have a normal loan. Using the 2009 housing crisis as an example, we are currently well above the highs of that market!
8. If your focus is long term and you want to eventually turn the home into a rental…it’s much easier to cash flow a home with a low mortgage payment than a home you have to buy at a higher interest rate and monthly payment!
9. Higher prices mean a bigger down payment requirements and higher interest rates mean less buying power and more money going out for housing expense each month!

Find Your Next Home Here!

Benefits of Owning a Home

1. It’s forced savings.
2. You get a tax benefit in your interest deduction or your mortgage. Which could mean a tax refund at the end of the year as opposed to writing a check to Uncle Sam.
3. Properties appreciate, you will be growing your net worth and wealth over time.
4. Every month you’re paying down your mortgage.
5. You have pride in the fact that you own a home. It’s yours to improve unlike in a rental.
6. As a homeowner now you are a vested part of the community.
7. When you rent you are throwing your money away and paying the landlords mortgage off.
8. No more pet deposits and pet fees?
9. Low rates mean more purchasing power.
10. Buying in a low interest rate environment means that you are paying historically more towards paying down your principal loan amount each month than in any other time in history.
11. Should you choose to, you could turn the home into a rental property, further growing your wealth.

June Charleston Market Update Forcasting

Prices seem high right now if you’re in the market but look at any major city in the US that has seen the kind of demand we are now seeing! Southern California in the 60’s and 70’s, Austin Tx, South Florida, Northern Virginia and more!

Well, being that I am typically fairly conservative I’m not willing to make any predictions, but maybe, just maybe, this could be Charleston’s time!

Stay tuned we will keep watching it!