Charleston Real Estate
Below is a graph that maps out the annual appreciation trend for real estate in the metro Charleston SC area for the last ten years. Metro Charleston is primarily made up of three counties: Berkeley county, Dorchester county, and Charleston county. The major towns that make up this metro are, Mt. Pleasant, Summerville, Goose Creek, North Charleston, James Island, and of course the city of Charleston.
On the graph you will see three lines. The red line represents the number of homes sold in a given year. Reference the numbers on the left margin. The green line represents the median sales price in a given year. Reference the numbers on the right margin. The blue line represents what home value appreciation should look like in a healthy stable market. If indeed the market were to stay healthy one should normally see about a 5% appreciation in their home every year, (all other things being equal).
As you can see, in an ideal world if someone bought a home in 2000 and decided to sell in in 2009 the home would increase in value by about $77,000. (This of course is assuming that the home is well maintained.) Unfortunately this is not what happened. For reasons that are too many to count, our market and the perception there-in skyrocketed in 2005, and our market went from being healthy to a bit obese. Prices began to rise and demand increased. Everyone thought, "the market is up, that is a good thing right?" It was too good! And, we are now feeling the effects. Prices have now slipped below the 5% yearly appreciation and the number of homes sold have dropped to that of 2001 and 2002.
A few lessons to learn from this market trend map.
1) Buyers: never buy more than you can afford just to keep up with the "Joneses." A lot of fancy financing schemes were one of the leading causes for what has happened. Too many people willing to pay too much with money they did not have.
2) Sellers: you now have to adjust your mentality as to what you are going to get for your home. Only 35% of homes that go on the market in the metro Charleston area are actually selling, and most of those are selling for a lesser price than what is being asked for. If you must sell, get with a Realtor who knows the market and can advise you on the right price to sell your home in this market.
3) Realtors: our number one job is "to protect the public." We need to be more vigilant in providing the most up to date information to our customers and clients. I think we need to be more aware of this type of situation in the future and start sounding alarms when prices start going well above the 5% annual appreciation trend.
Like every other civilization that has come before us, if we do not learn the lessons of the past, we most certainly are doomed to repeat them. Next time, the cost may be greater!
Other Blogs:
Mt Pleasant, South Carolina Homes Sold Stats 2009
Goose Creek Real Estate
Crowfield Plantation Goose Creek SC
The Elms Plantation
Tanner Plantation
www.MetroCharlestonHomes.com -Search Charleston Homes
www.providingthelight.com - My Blog
If you have a home anywhere in the Charleston Metro Area and would like to get more information about selling your home, please contact me for a free home evaluation.
I also work with buyers. If you are interested in more information about buying a home please contact me and I would be glad to meet with you or email you a list of homes.
Michael J. Johnson, Realtor, ABR
843-817-5299
michaeljohnson@carolinaone.com
"Providing the Light to Guide You Home"
