Category Archives: Real Estate (Market info)

This Category features Charleston area market data and information

03/09/2024 · 6:59 am

Mortgage Rates take a slight dip but Where are They Headed?

Freddie Mac reports the 30-year FRM averaged 6.88 percent as of March 7, 2024, down from last week when it averaged 6.94 percent. A year ago, at this time, the 30-year FRM averaged 6.73 percent.

As the rates took a small dip, mortgage applications rose, evidence that purchase demand remains sensitive to interest rate changes. Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market.

SEE FREDDIE MAC RATE AVERAGES HERE

Where are Rates Headed? No one has a crystal ball but here is what some experts are predicting:

  • Freddie Mac. With the current stance of monetary policy holding steady, we expect mortgage rates to move sideways, remaining above 6.5% through this quarter and drifting down to about 6% by year’s end.
    Fannie Mae Housing Forecast. The 30-year fixed rate mortgage will average 6.3% in Q2 2024 and slowly decline over the year, landing at a Q4 average of 5.9%.
  • National Association of Realtors chief economist Lawrence Yun. “The budget deficit remains high, and the various inflation metrics remain above the comfort level. That means the mortgage rates will likely be in the 6% to 7% range for most of the year.”
  • Mortgage Bankers Association (MBA). MBA’s baseline forecast is for mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.
  • Bright MLS chief economist Dr. Lisa Sturtevant. During the early part of the year, expect some bumpiness in rates as new economic data are released and as more buyers get back into the market. However, the overall outlook for mortgage rates in 2024 suggests more rate drops, with Bright MLS forecasts predicting rates to hit 6.2% by the fourth quarter.

If you are considering buying a home and would like help navigating through the process, feel free to contact me.

Gena Glaze

Leave a comment

Filed under Home Buying (For Buyers), Real Estate (Market info)

03/08/2024 · 9:17 pm

Charleston SC -Housing Market Stats – 2/2024

Here are the latest stats from Charleston Metro MLS – February 2024 calculations.

The median sales price for the Charleston Market has remained fairly steady with a median a sales price of $407,235. up about 6% above February 2023.

While the median sales price has remained in a tight band, between 400k-420k, for most of the previous 24 months, the seasonal dip in median price that is typically experienced around the first of the year bottomed out about 6% above last year’s seasonal dip (2/2023 vs 2/2024), suggesting that the current pricing in our market has a solid base and given low inventory levels relative to sales levels, this could mean that additional price gains lie ahead.

The inventory calculated at February’s end was at 2.5 months, which is an increase over last February’s 1.76 months.  

Active Inventory stands at approximately 2,900 listings. While this level of inventory is a significant increase from the low of last February, but we still need roughly 3,500 additional listings market wide to achieve a balanced market (5 months of inventory)

The average days on market was calculated at 48 (median was 25) at February’s end.

Although inventory is low, we have recently had an increase in new listings coming onto the market.

New listings taken have gone up dramatically over the past sixty days with more than 2,000 new listings coming online in February, +36% to the number of listings taken last February. This should help drive sales this spring and summer.

1287 sold properties in February 2024, up 11.6 % from last February’s but written sales, market wide, was down -4%.

Last week saw 291 properties go under contract.

New construction represents 41% of all pending contracts in the MLS and new construction comprises about 35% of the closings.

Foreclosures and Short Sales continue to hold at a combined .7% of all available listings currently. This is down from 1.8% of all available listings on 1/1/2020. There are very few “newly distressed” properties in the pipeline.

Surprisingly, we are at roughly double the monthly pre-pandemic sales levels of properties over one million. This market segment remains surprisingly robust.

Keep in mind, this is a snapshot of the entire Metro Market, real estate is hyper-local and stats will vary within the different areas of the market. If you would like information about your property or neighborhood, please don’t hesitate to contact me.

Gena Glaze

Leave a comment

Filed under Market Statistics, Real Estate (Market info)

03/08/2024 · 9:51 am

Why Sell NOW? Today’s Housing Supply Can be a Sweet Spot for Sellers

Why Today’s Housing Supply Is a Sweet Spot for Sellers

Wondering if it still makes sense to sell your house right now? Everyone’s situation is unique, but the current market could prove to be beneficial for you.

An article from Calculated Risk shows there are 15.6% more homes for sale now, nationally, compared to the same week last year. That tells us inventory has grown. But going back to 2019, the last normal year in the housing market, there are nearly 40% fewer homes available now:

a graph with red and blue squares

How this could benefit you when you sell.

1. You Have More Options for Your Move

If you are going to move to another home, the year-over-year growth gives you more options for your home search. This means it may be a little less of a challenge to find what you’re looking for.

2. You Still Won’t Have as Much Competition When You Sell

Even though there are more homes for sale now, there still aren’t as many as there’d be in a normal year. Remember, the data from Calculated Risk shows we’re down nearly 40% compared to 2019. And that large a deficit won’t be solved overnight. As a recent article from Realtor.com explains:

“. . . the number of homes for sale and new listing activity continues to improve compared to last year. However the inventory of homes for sale still has a long journey back to pre-pandemic levels.”

Less competition means you may find an eager buyer quickly and get your home sold for top dollar.

Bottom Line

So, If you’re a looking to make a move, NOW could prove to be a great time! You’ll have more options when buying your next home than you did last year, and there’s not a ton of competition from other sellers.

If you have considered selling, I would be happy to provide you with information and resources to help you determine if the timing is right for you to make a move.

Feel Free to Contact Me anytime!

Gena Glaze

Leave a comment

Filed under Real Estate (Market info), Selling Real Estate (For Sellers)

02/22/2024 · 11:44 am

Expert Home Price Forecasts for 2024 Revised Up

Over the past few months, experts have revised their 2024 home price forecasts based on the latest data and market signals, and they’re even more confident prices will rise, not fall.

What’s caused the change?

2024 Home Price Forecasts: Then and Now

The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:

a blue and white graph with text

The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you’ll see they’ve all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.

There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:

“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”

A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.

Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, mortgage rates were up and buyer demand was more moderate.

Now that rates have come down from their peak last October, and with further declines expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.

A Look Forward To Get Ahead of the Next Forecast Revisions

Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.

That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess but pay attention to mortgage rates.

If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.

Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.

Bottom Line

At first, experts believed home prices would only go up a little this year. But now, they’ve changed their minds and are forecasting that prices will grow even more than they originally thought.

If you have considered buying or selling a home this year, I would love to help! Please feel free to contact me.

Gena Glaze

Leave a comment

Filed under Home Buying (For Buyers), Market Statistics, Real Estate (Market info), Selling Real Estate (For Sellers)

Tagged as

02/12/2024 · 4:33 pm

Houses Are Still Selling Fast!

Have you been thinking about selling your house? If so, here’s some good news. While the housing market isn’t as frenzied as it was during the ‘unicorn’ years when houses were selling quicker than ever, they’re still selling faster than normal.

The graph below uses data from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years:

When you look at the most recent data (shown in green), it’s clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). According to Realtor.com:

“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”

Locally, The Charleston MLS is currently at 27 days on Market.

What Does This Mean for You?

Homes are selling faster than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that mortgage rates have come down, but there still aren’t enough homes to go around. Mike Simonsen, Founder of Altos Research, says:

“. . . 2024 is starting stronger than last year. And demand is increasing each week.”

Bottom Line

If you’re wondering if it’s a good time to sell your home, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the latest updates on what’s happening in our local market, let’s connect.

Gena Glaze

Leave a comment

Filed under Market Statistics, Real Estate (Market info), Selling Real Estate (For Sellers)

02/12/2024 · 4:26 pm

South Carolina Ranked #1 In America For Selling The Most Homes Per Capita

According to the latest report from Zillow, reported by Globalflare, the state of South Carolina was recently ranked as the #1 state in America for selling the most homes per capita.

The Palmetto State is currently experiencing an impressive rate of 77.30 homes sold for every 100,000 residents. Over the course of the last month, a total of 4,071 houses and apartments changed hands, with an average selling price of $301,659.

Methodology: Zillow was checked to see recently sold houses and apartments over the last 30 days across America.

Gena Glaze

Leave a comment

Filed under Charleston Area Growth and Development, Real Estate (Market info)

02/12/2024 · 3:53 pm

Capital Gains Tax and Exclusions.

A capital gain is the profit made when selling an investment or asset, including real estate. The capital gains tax is the levy on that profit when an investment is sold. It is owed for the tax year during which the investment is sold.

Long-term capital gains tax is the tax levied on profits of an asset or investment that was owned for over one year. The long-term capital gains tax rate vary and depend on your income but the rates are typically lower than your ordinary income tax rate

If the investment or asset is owned for less than a year when the gain is made, then the  short-term capital gains tax applies. The short-term rate is typically determined by the taxpayer’s ordinary income bracket – but can vary in some circumstances.

The Primary Residence Exclusion. IRS – Section 121

The Internal Revenue Service (IRS) allows homeowners to exclude a certain amount of gains that result from the sale of their primary home from their income. This is known as the Section 121 rule.

Single Homeowners may exclude up to $250,000 of gains on the sale of their property, and married homeowners filing jointly can exclude up to $500,000.

To be eligible for these exclusions You must have owned the home for at least two years AND have lived in the home as your primary residence for at least two years of the previous five years prior to the sale date. The two-year period does not have to be consecutive. See More Here at IRS

Investment Property Deferment- 1031 Tax Exchange in Real Estate

Section 1031 is a provision of the Internal Revenue Code (IRC) that allows a businesses or the owners of investment property to defer federal taxes on some exchanges of real estate.  The provision is used by investors who are selling one property and reinvesting the proceeds in one or more other properties.

Qualifying Section 1031 exchanges are called 1031 exchanges, or like-kind exchanges.

In General, A 1031 exchange allows investors to defer taxes on the profits of sold investments. The exchange can be complex with rigid time frames for identifying the replacement property and reqiures a Qualified Intermediary (QI) to oversee and process and the funds.

Tax laws and codes are complex and can change, always consult a tax professional to review your unique situation.

More Info at IRS

Gena Glaze

Leave a comment

Filed under Home Buying (For Buyers), Learn Real Estate Terms, Real Estate (Market info), Selling Real Estate (For Sellers)

01/15/2024 · 8:24 pm

South Carolina Named the Fastest Growing State in the Nation

Newcomers to S.C. greatly accelerated during the pandemic years as remote employment took hold and that trend has continued. South Carolina was recently crowned the fastest-growing state in the nation by the U.S. Census Bureau based on percentage growth, adding roughly 90,000 additional residents to the population.

Top 10 States or State Equivalent by Percent Growth: 2022 to 2023
RankGeographic AreaApril 1, 2020 (Estimates Base)July 1, 2022July 1, 2023Percent Growth
1South Carolina5,118,4225,282,9555,373,5551.7
2Florida21,538,21622,245,52122,610,7261.6
3Texas29,145,45930,029,84830,503,3011.6
4Idaho1,839,1171,938,9961,964,7261.3
5North Carolina10,439,45910,695,96510,835,4911.3
6Delaware989,9461,019,4591,031,8901.2
7District of Columbia689,548670,949678,9721.2
8Tennessee6,910,7867,048,9767,126,4891.1
9Utah3,271,6143,381,2363,417,7341.1
10Georgia10,713,77110,913,15011,029,2271.1

This population boom created more demand for housing, but inventory has been constrained, keeping prices afloat and putting pressures on rents.

The population growth is mainly concentrated in larger cities with populations declining in some rural areas. Local governments increasingly engage in managing growth and pursuing affordable housing options for workforce.

Mortgage interest rates have fallen from their peak of nearly 8 percent in 2023, and many financial experts speculate interest rates will continue to moderate. Inventory is expected to rise, and lower interest rates should help make homes more affordable. Whether the rising supply can keep up with demand remains to be seen.

Gena Glaze

More information: at

Post and Courier

Census Bureau

Leave a comment

Filed under Charleston Area Growth and Development, Home Buying (For Buyers), Real Estate (Market info), Selling Real Estate (For Sellers)

Image

2023 – A Year In Review – Charleston Area Real Estate SC

Seasonal Flow of Business Returns. We seem to have exited the “pandemic years” when real estate was busy at all points in the year and we have returned to a more normal seasonal flow of business as shown in the chart below. All three lines (2022, 2023, and the 15 year average) track each other closely throughout the year. The orange line represents ratified contracts by week 2022, the green line is 2023 and the blue line is the 15-year average for each week.

As inventory was still constrained and interest rates begin retreating, written sales market wide finished -7% in December of ’23 versus December of ‘22

 The Median sale price in the Charleston MLS continues to stay in a tight band between $400k and $420k where it has been for most of the last 20 months.

Inventory remained below what is needed for a balanced market throughout 2023.         At end of December active Inventory stood at approximately 2,800 listings. This level of inventory is a significant increase over the 1,035 listing “floor” that we set in February of 2022, but still below what is needed for a balanced market.  3,000 additional listings are needed 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 expressed visually in the chart below.

The Good News` – Although inventory is still constrained, we are starting to see a trend of new listings hitting the market increasing over the same month a year prior for the first time in two years. This has happened for three consecutive months.

Absorption Rate                                       By the end of the 2023, The Charleston market had about eight weeks of inventory as a whole, still trending more toward a seller’s market (this can vary by price range and specific location). The most active areas have inventory levels in the 5–9-week range.

New Construction                                       At December’s end, new construction represented approximately 49% of pending contracts in the MLS and new construction comprised about 33% of the closings and new homes represented approximately 32% of the available inventory.

Looking forward for what 2024 will bring!

Gena Glaze

Leave a comment

01/15/2024 · 2:05 pm
12/22/2023 · 12:36 pm

Ho!-Ho!-Ho! Lower Mortage Rates for The Holidays!

Mortgage rates stayed below 7% for the second week in a row.

The 30-year, fixed mortgage rate averaged 6.67% for the week ending Dec. 21, according to Freddie Mac‘s Primary Mortgage Market Survey. That’s down from last week’s 6.95% and up from 6.27% the same week a year ago. Meanwhile, HousingWire’s Mortgage Rates Center showed Optimal Blue’s average 30-year fixed rate on conventional loans at 6.68% on Thursday. 

“Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “A rise in homebuilder confidence, followed by new home construction reaching its highest level since May, signals a response to meet heightened demand as current inventory remains low.”

Lower rates will have a positive impact on affordability, Lisa Sturtevant, chief economist at Bright MLS, said in a statement. Bright MLS forecasts the average on a fixed-rate mortgage rate to fall to 6.5% by mid-year and to decline further to 6.2% by the end of next year. With a rate of 6.2%, the typical monthly payment on a loan for a $400,000 home would be about $2,700, down from $3,000 with a 7.5% rate.

Locally, we have seen rates as low as 6.625% PAR for top tier borrowers on a 30 year loan and properly qualified borrowers could buy down to 5.99% for less than 2 points.  To put this in perspective, 45 days ago mortgage rates were sitting at roughly 8% for top tier borrowers, on a 500k mortgage this equates to $467/mo lower payments now compared to 45 days ago.

Gena Glaze

Leave a comment

Filed under Real Estate (Market info)