Measurement to Track the Market . . .
Most 2011 Market Indicators for the Charleston Real Estate Market are good for buyers, and bad for sellers - Timing even better
See the attached pdf file with the graphic with Monthly Sales.
Monthly Sales (Units): Off about 2%. 1784 versus 1822, not terribly significant other than the lack of positive movement.
Monthly Volume ($'s) is off 4.2%. Combining lower unit sales with lower average sale price.
Average List: Down 1.7%.
Average Sales Price: Down 2.2%.
Average $ per Square Foot: Down 7% (80 versus 86)
Median Sold: No Change
Average Days on Market: Up 19%, not good for sellers. The trend is moving upward with houses sitting longer in spite of lower inventory numbers. These two indicators combined are a sign that families hoping to sell their homes and move are giving up and taking their homes of the market.
% Sold/List: Down less than 1%, and above 95% is a sign that sellers are taking the advice of good agents and that homes are priced more realistically with the market. A buyer should be careful in interpreting this number, as every scenario is different. If you have a long list of must-haves and you're looking for a rare item, the dynamics are much different than if you're flexible and looking for something with a lot of supply. Timing is also critical. If time is on your side and you have plenty of time, you can use this to your advantage. If you're working with a tight window, negotiating is tougher.
Current Inventory: Months of inventory is the only shining star for sellers, but is offset by the fact that Average Days on Market are WAY up.
The trend. The indicators moving so slightly over a 12 month period is evidence that the market has stabilized. The inventory is still cluttered with foreclosures. As soon as that clears, and it will probably be another three years, I would expect the pricing and inventory trends to reverse in the direction of sellers. The sooner that happens, the better for everyone. For now, it's important to be aware of the implications from both sides, since other than first time home buyers, today's seller is tomorrow's buyer.
Market Update by month in pdf file.
Implications for sellers. I know it sounds self-serving, but it has never been more important to have an agent you trust to price your home correctly. Standard listing agreements have built-in conflicts of interest that easily causes distrust between home sellers and agents. The lower the price, the easier it will be for the agent to sell it. On the other hand, some agents will take over-priced listing because at least they'll have prospective buyers contacting them about your overpriced home, and they can sell them someone else's listing and make the commission on the buyer side. I'm not disparaging any particular agent, but just pointing out the simple fact that you aren't paying anything out of pocket for the agent's work until the home sells.
Condition, merchandising and starting with the right price are critical. It might be necessary to invest in an improvement to make your home stand out. Perhaps something to make the backyard pop, or working on your curb appeal. Maybe updating the master bedroom and bath. It doesn't need to be expensive. Buyers are really going for new construction right now, and if your home is dated, the buyer is going to hammer you because they have to invest in updating, and because it's a hassle to have to do remodeling right after moving in. As much as you think everyone wants a fixer upper, these buyers are also expecting to be rewarded for their trouble. If there are no funds available, then the very minimum you need to do is staging so that the house shows well. If you haven't been to a new construction model lately, then get yourself to two or three. It's a hassle to get your kids to put their toys away, and to keep everything neat and tidy, but the more effort you put in now, the sooner you can have this over with and be in your new home.
Implications for buyers. Again, having an experienced competent and hardworking agent can save you tons of money and dramatically increase your chances of meeting your deadline and avoid having to store your stuff and live in an apartment. Experienced home buyers know that the real world is nothing like the shows
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