Category Archives: Home Buying (For Buyers)

This category features information about buying property.

08/26/2023 · 6:26 pm

Market Update – Charleston SC Real Estate-8/23

1) Written sales market wide finished -7% in July of ’23 versus July of ’22.

  • July finishing at -7% to last July is an excellent outcome

(2) Early August showed a relatively strong 314 properties go under contract. Sales (green line) have remained remarkably close to the 15 year average (blue line) for about two and a half months.

The orange line represents ratified contracts by week last year…the green line is this year…and the blue line is the 15 year average for each week.

Green line=2023 Orange Line=2022 Blue Line=15-year average

(3)  Mortgage rates remain elevated, and this is obviously holding back sales levels.

  • 6.5% may be the “magic number”
  • When 30 year mortgage rates trend below that number and stay there for a reasonable period of time, buyers will come off of the sidelines and resale listing inventory will start to come back online at a higher rate than what we are seeing currently

(4)  The Median sale price in the Charleston market continues to stay in a tight band between $400k and $420k where it has been for most of the last 15 months, sitting at $405k in June.

(5) Active Inventory stands at 2,412 listings. We haven’t seen much inventory growth this summer and inventory typically starts a slow seasonal decline in September or October. This will also likely put upward pressure on prices, or at the very least hold prices steady.

While this level of inventory is a significant increase over the 1,035 listing “floor” that we set in February of 2022:

  • We need roughly 4,600 additional listings market wide to achieve a balanced market (5 months of inventory)
  • The gap between the number of listings available for sale and the number of listings needed to maintain a balanced market is substantial. The chart below is an attempt to express this visually.

(6) There continues to be a reluctance of owners to list their property; new listings taken were down 17% in July of ’23 versus July of ’22.

7) The Charleston market has about six or seven weeks of inventory as a whole, still solidly a seller’s market (this can vary by price range and specific location, of course). The most active areas have inventory levels in the 3-5 week range.

(8) New construction represents 46% of all pending contracts in the MLS and new construction comprises about 32% of the closings.

  • New Homes “pendings” will always be higher than new homes closings as new construction typically sits in pending status for far longer than a resale, and the new homes tend to “pile up” in pending status, so new homes actually represent about 32% of the sales market currently
  • New homes represent 33% of the available inventory currently
  • New construction does not appear to be poised to ride to the rescue of our inventory problem; the last 12 months of permits issued in the tri-county sits at almost exactly the midpoint (5,354 single family permits) between the historical high point (8,084 permits) and the historical low point (2,732 permits)
  • To meet demand in a low resale inventory environment, it is projected that we need approximately 7,000-8,000 new single-family builds in Charleston annually.

(9) Foreclosures and Short Sales continue to hold at a combined .6% of all available listings currently. This is down from 1.8% of all available listings on 1/1/2020. This market has been and continues to be basically nonexistent and there are very few “newly distressed” properties in the pipeline.

  • “Serious delinquencies fell to the lowest level since August 2006; June delinquency rate was the third lowest on record.” – Black Knight Mortgage Monitor Headline from last week
  • Record home equity is driving the low delinquency rate along with high levels of employment. Many homeowners do not want to walk away from their equity.

(10) We are at roughly double the monthly pre-pandemic sales levels of $1MM+ properties. This market segment remains surprisingly robust.

f you have considered buying or selling a home in The Tri-County area, I would love to help!

Gena Glaze

843-343-8239

gena@genaglaze.com

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08/26/2023 · 4:08 pm

Why There Won’t Be a Flood of Foreclosures Coming to the Housing Market

With the rapid shift that’s happened in the housing market this year, some people are raising concerns that we’re destined for a repeat of the crash we saw in 2008. But in truth, there are many key differences between what’s happening today and the bubble in the early 2000s.

One of the reasons this isn’t like the last time is the number of foreclosures in the market is much lower now. Here’s a look at why there won’t be a wave of foreclosures flooding the market.

Not as Many Homeowners Are in Trouble This Time

After the last housing crash, over nine million households lost their homes due to a foreclosure, short sale, or because they gave it back to the bank. This was, in large part, because of more relaxed lending standards where people could take out mortgages they ultimately couldn’t afford. Those lending practices led to a wave of distressed properties which made their way into the market and caused home values to plummet.

But today, revised lending standards have led to more qualified buyers. As a result, there are fewer homeowners who are behind on their mortgages. As Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association (MBA), says:

“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979 – declining to 3.45%. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages.”

There Have Been Fewer Foreclosures over the Last Two Years

While you may have seen recent stories about the number of foreclosures rising today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The program gave homeowners facing difficulties extra time to get their finances in order and, in many cases, work out a plan with their lender.

With that program, many were concerned it would result in a wave of foreclosures coming to the market. That fear didn’t materialize. Data from the New York Fed shows there are still fewer foreclosures happening today than before the pandemic (see graph below):

Why There Won’t Be a Flood of Foreclosures Coming to the Housing Market | Simplifying The Market

That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019.

And most importantly, the number we’re seeing now is still far below the number we saw during the market crash (shown in the red bars in the graph). The big takeaway? Don’t let a headline in the news mislead you. While foreclosures are up year-over-year, historical context is essential to understanding the full picture.

Most Homeowners Have More Than Enough Equity To Sell Their Homes

Many homeowners today have enough equity to sell their homes instead of facing foreclosure. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. And if they’ve stayed in their homes even longer, they may have even more equity than they realize. As Ksenia Potapov, Economist at First American, says:

“Homeowners have very high levels of tappable home equity today, providing a cushion to withstand potential price declines, but also preventing housing distress from turning into a foreclosure. . . the result will likely be more of a foreclosure ‘trickle’ than a ‘tsunami.’”

A recent report from ATTOM Data explains it by going even deeper into the numbers:

“Only about 214,800 homeowners were facing possible foreclosure in the second quarter of 2022, or just four-tenths of one percent of the 58.2 million outstanding mortgages in the U.S. Of those facing foreclosure, about 195,400, or 91 percent, had at least some equity built up in their homes.”

Bottom Line

If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years. If you have questions, let’s connect.

Gena Glaze

gena@genaglaze.com

843-343-8239

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01/29/2022 · 6:12 pm

January 2022 – Market Update – Goose Creek / Moncks Corner

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Investing; Americans Choose Real Estate!

Americans Choose Real Estate as the Best Investment [INFOGRAPHIC] | Keeping Current Matters

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01/29/2022 · 1:05 pm
08/27/2019 · 2:43 pm

Experts Predict A Strong Housing Market For The Rest Of 2019

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019.

20190826-Share-KCM

Here’s what some of the experts have to say:

Ralph McLaughlin, Deputy Chief Economist for CoreLogic

“We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”

Lawrence Yun, Chief Economist at NAR

“We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.”

Freddie Mac

“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”

Bottom Line

The housing market will be strong for the rest of 2019. If you’d like more informion or a FREE market Evaluation of your property.  Contact me

-KCM

Gena Glaze 843-343-8239

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07/11/2019 · 3:12 pm

Millennials Are Increasing The Demand For Condominiums

Millennials Are Increasing the Demand for Condominiums

When deciding to buy a home, people are presented with many different options. The type of home you buy depends on your needs, budget, and in many cases, the desired maintenance level. For many millennials, their choice has been buying a condominium!

According to CoreLogic,

“Last year about 43% of all condo home-purchase mortgage applications were submitted by FTHBs… Similarly, the data show condos were more popular with young homebuyers and empty nesters. For instance, 21% of all condo home-purchase mortgage applications were submitted by buyers aged 18 to 30, compared with just 17% of all single-family home-purchase mortgage applications by the same group in 2018.”

With home prices increasing year-over-year, it makes sense millennials are buying condos instead of a single-family house. As a result, the demand for this type of home has been increasing.

Millennials Are Increasing the Demand for Condominiums | Keeping Current Matters

As this graph explains,

“The younger millennials are the largest cohort and are likely to drive much of the condo demand in the coming years”.

Bottom Line

If you are a millennial considering buying a home, understand that there are many options available. You may find yourself in a condominium as your first home. If you would like to determine which type of home best fits your needs, sit down with a real estate professional that can help evaluate your options!

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07/11/2019 · 2:51 pm

Charleston Area Real Estate Stats- Halfway through 2019

The market is Steady with Median sales price increases… We are halfway through 2019, here is how the market is fairing by county….

 

Berkeley County

503 homes sold at a median price of $223,250 in Berkeley County in June, 433 single-family homes and 70 Condos/townhomes. Year-to-date, single-family home sales have increased 4.4% in the County, as the median home price has increased by nearly 8%, to $259,900. Condo and townhome sales are up 1.6% as median price is up over 7% to $174,950 so far this year.

There are currently 1,035 residential properties for sale in Berkeley County; 921 single-family homes and 114 condos/townhomes.

BERKELEY COUNTY STATS

Charleston County

971 homes sold at a median price of $315,000 in Charleston County in June, 738 single-family homes and 233 Condos/townhomes. Single-family home sales have slowed 3.6% this year, as median home price is up 1% to $385,000. Condo and townhome sales have declined by 3.4% as median price has increased 2.6% to $235,000 so far this year.

There are currently 3,407 residential properties for sale in Charleston County—2,518 single-family homes and 889 condos/townhomes.

CHARLESTON COUNTY STATS

Colleton County

25 homes sold at a median price of $222,250 in Colleton County in June, 20 single-family homes and 5 Condos/townhomes. Single-family home sales have declined nearly 19% this year, as median home price increased 5% to $200,000. Condo and townhome sales have increased over 7% as median price has declined 15.4% to $143,900 so far this year.

There are currently 192 residential properties for sale in Colleton County—176 single-family homes and 16 condos/townhomes.

COLLETON COUNTY STATS

Dorchester County

352 homes sold at a median price of $216,475 in Dorchester County in June, 311 single-family homes and 41 Condos/townhomes. Single-family home sales declined by 3% in the County, as median home price is up 7% so far this year, to $252,000. Condo and townhome sales saw a decline of nearly 10% as median price increased nearly 9% to $169,900 for the year.

There are currently 697 residential properties for sale in Dorchester County—635 single-family homes and 62 condos/townhomes.

DORCHESTER COUNTY STATS

 

GenaGlaze.Com

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06/07/2019 · 12:42 pm

How Homeownership Delivers Unsurpassed Family Wealth

 

There are many financial benefits to homeownership, but probably none more important than its ability to create family wealth.

How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is an online resource for research and information on how homeownership contributes to individual and community success.

Their article, The First Rung on the Ladder to Economic Opportunity Is Housing, explains the importance of homeownership to a family’s financial health. In that article, they simply stated:

“The ladder to economic success can stretch only so high without the asset-building power of homeownership.”

To this point, National Association of Realtors’ (NAR) Economists’ Outlook Blog revealed in a recent post:

“Housing wealth contributes positively to the homeowner’s and children’s economic condition, because home equity can be tapped for expenditures such as investing in another property (which can generate rental income), home renovation (which further increases the home value), a child’s college education, emergency or major life events, or expenses in retirement…

Housing wealth (or net worth or equity) is built up over time via the home price appreciation and the principal payments that the homeowner makes on the loan.”

How Homeownership Delivers Unsurpassed Family Wealth | Keeping Current Matters

Just last month, NAR’s Chief Economist, Lawrence Yun, explained that even though home appreciation has slowed, homeowners are still building wealth:

“Homeowners in the majority of markets are continuing to enjoy price gains, albeit at a slower rate of growth. A typical homeowner accumulated $9,500 in wealth over the past year.”

Later in life, this wealth is crucial…

This wealth is important to a family’s retirement plans. In a recent report from the Joint Center for Housing Studies at Harvard University titled, Housing America’s Older Adults 2018, they revealed that a renter 65 years old or older has a net worth of $6,710. Meanwhile, a homeowner 65+ years old has a net worth of $319,200. That huge difference will allow for a dramatic upgrade in one’s lifestyle during your retirement years.

Bottom Line

Homeownership builds wealth. This, in turn, allows families to have more and better options when it comes to their children and their life in retirement.

-KCM

Gena Glaze

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04/23/2019 · 11:42 am

With Inventory Low: Will Your Dream Home Need Some TLC?

According to a new survey from Move.com, the wave of first-time homebuyers hitting the market this summer has resulted in an interesting statistic. Nearly 60% of buyers searching for a home this spring are willing to consider buying a fixer-upper, with 95% believing that the projects needed will increase their new home’s value!

Realtor.com’s Chief Economist, Danielle Hale, pointed to low-inventory at the entry-level price range for the increase in willingness to renovate.

“The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating.

Replete with inspiration at their fingertips – like Pinterest, Instagram, and various home renovation TV shows – some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget.”

Just over half of all respondents who said they would be willing to buy a home in need of some TLC, would also spend more $20,000 to make the home fit their needs.

The most common ‘expected’ renovation is a kitchen remodel which can run anywhere from $22,000 for a minor remodel to $66,000 for a major remodel.

This isn’t a new trend by any means. According to the Joint Center for Housing Studies at Harvard University,home improvement project spending reached a new high in 2018.

With Inventory Low: Will Your Dream Home Need Some TLC?

“Americans spent $336.9 billion on remodeling projects, up 7.4% from the $313.6 billion a year earlier.”

Home renovation television shows have given many buyers hope that they could renovate a home they can afford into their dream home!

Bottom Line

If you are one of the many Americans considering buying a home this spring, meet with a local real estate professional who can help you find a house with the potential to be your dream home!

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04/23/2019 · 10:59 am

Homebuyers Shouldn’t Worry About 2008 All Over Again

Homebuyers Shouldn’t Worry About 2008 All Over Again

Last week, realtor.com released a survey of active home shoppers (those who plan to purchase their next home in 1 year or less). The survey asked their opinion on an impending recession and its possible impact on the housing market.

Two major takeaways from the survey:

  • 42% believe a recession will occur this year or next (another 16% said 2021)
  • 59% believe the housing market would fare the same or worse than it did in 2008

Why all the talk about a recession recently?

Over the last year, four separate surveys have been taken asking when we can expect the next recession to occur:

  1. The Pulsenomics Survey of Market Analysts
  2. The Wall Street Journal Survey of Economists
  3. The Duke University Survey of American CFOs
  4. The National Association of Business Economics

70% of all respondents to the four surveys believe that a recession will occur in 2019 or 2020 with an additional 18% saying 2021.

However, we must realize that a recession does not mean we will experience another housing crash. According to the dictionary definition, a recession is:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

During the last recession, a dramatic fall in home values helped cause it.

However, according to research done by CoreLogic, home values weren’t negatively impacted as they were in 2008 during the previous four recessions:

Homebuyers Shouldn’t Worry About 2008 All Over Again | Keeping Current Matters

During the four recessions prior to 2008, home values depreciated only once (at a level that was less than 2%). The other three times home values appreciated, twice well above the historic norm of 3.6%.

Bottom Line

If there is an economic slowdown in our near future, there is no need for fear to set in. Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained that there’s no reason to panic right now, even if we may be headed for a recession.

“We’re seeing a cooling of the housing market, but nothing that indicates a crash.”

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