New Construction vs Resales First Half of the Year

New Construction vs Resales

Construction on new single-family homes across the country soared nearly 13% in July from June to the best level since December 2007, the beginning of the Great Recession, according to a new government report released Tuesday.

Here in the tri-county Charleston area, closings on new single-family homes increased 9.5% the first half of this year compared to the same period last year.  That’s 935 new homes that were built and sold in just 6 months!  On the flip side, resales of single-family homes have increased almost 21% the first half of the year compared to last year’s first half.  That’s 8,732 pre-owned homes that have sold so far.

Mid-Year Real Estate Stats

2015 has been a fantastic year so far in the Charleston Tri-county area!  We’re up almost 14% in number of transactions, and our median sales price is up almost 4% over 2014 at $225,500.

The months of inventory is now around 4.5 for the entire MLS.  Avg. is 6, so 4.5 means a very strong market.  Many areas are definitely experiencing a seller’s market.

Buying activity continues to be very strong.  Some of the stronger areas that have seen large median price increases over last year include:

AREA    INCREASED % OVER LAST YEAR
N.Charleston Area inside I-526 182.6%
Sullivan’s Island 54.3%
Kiawah 38.3%
Wild Dunes 29.7%
Folly Beach Area to Battery Island 26.9%
Goose Creek/Moncks Corner 21.3%
W.Ashley inside I-526 13.3%
Moncks Corner Above Oakley Rd. 11.6%
N. Charleston/Summerville 11.0%

 

Fulton Neighborhood Brings Modern Living To Mt. Pleasant

0721151309aerial

 

 

 

 

 

A new, modern development called Fulton Neighborhood is underway in the center of Mt. Pleasant with semi custom homes, and you may not even be aware of it.  Those that have stumbled upon it are able to take advantage of early bird discounts and will have built-in equity by the time their homes are complete.  Fulton is tucked away off of Hwy. 17 North directly across from Boone Hall Farms.  Turn right onto Fulton Ln. at the palmetto trees.

07211513080721151303

 

 

 

ALKA, a veteran of the high-end custom build home market, is the builder of this community. With nearly two decades of experience, ALKA builders say that, in Fulton, they would like to use their experience to simplify the process by doing the majority of the preparation and pre-selection work by their team. This frees the homeowner to focus on customizing finished rather than the development of plans and designs.”

07211513040721151259a

 

 

 

Six floorplans are available, all with a modern twist on Lowcountry architecture, built with quality materials and an emphasis on low maintenance and energy efficiency. Raised slab foundations eliminate crawlspace humidity. Concrete porches have a tabby finish and brick borders. Metal roofs lend a historic vibe while adding to longevity and value. All homes feature 2 x 6 exterior walls, vinyl windows, increased insulation, tankless water heaters, high-quality garage doors, high-efficiency HVAC systems and more.

072115130207211512580721151256

 

 

 

 

 

 

Fulton includes several well-planned, shared outdoor spaces for residents of all ages to enjoy, including the gathering area, fenced in playground, a park, and nature trails. The gathering area is designed for block parties and cookouts with cooking and lounging sections.

07211512590721151301

 

 

 

Home sizes range from 2251 sqft to 3186 sqft.  Prices start at $629,000, but early bird discounts will be deducted from the listed prices..  If you’re interested, call me and I’ll set up an appointment to give you a tour of their model homes.

Housing Supply Overview

The last 12 months have seen a lot of buyer activity.  Prices are up in most markets and buyers are hungry to purchase, yet inventory remains low.  If existing owners will not sell, new construction is the next best answer to this dilemma.  For the 12-month period spanning June 2014 through May 2015, Pending Sales in SC were up 19.2% overall.  The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 28.5%.

The overall Median Sales Price was up 3.3% to $218,000.  The property type with the largest price gain was the Condos segment, where prices increased 5.2% to $175,000.  The price range that tended to sell the quickest was the $150,001 to $200,000 range at 63 days; the price range that tended to sell the slowest was the $300,001 and Above range at 93 days.

Market-wide, inventory levels were down 16.9%.  The property type that lost the least inventory was the Single Family segment, where it decreased 16.3%.  That amounts to 4.0 months supply for Single-Family homes and 4.6 months supply for Condos.

Median Price

Inventory1

 

Mortgage Rate Quote for Charleston, SC as of 6/30/15

Jennifer Morris of Wells Fargo Mortgage is offering the following home mortgage rates. You can reach Jennifer at 843-367-3162 or email her at Jennifer.W.Morris@wellsfargo.com.

CONVENTIONAL
30 year fixed      4.125%
15 year fixed      3.375%
5 year ARM          3.00%

FHA/VA
30 year fixed         3.875%
5 year ARM           3.25%
 
JUMBO CONVENTIONAL
30 year fixed       4.00%
7 year ARM        3.375%

*Rates are with 0%  origination/discount points.
**Rates are subject to change due to market fluctuations and borrower’s eligibility. Payment amounts do not include amounts for taxes and insurance. Actual monthly payment could be higher.

Pricing just released for Tidal Walk Near Belle Hall

Pricing has just been released by DR Horton for the new homes being built in Tidal Walk.  This is a new community adjacent to Grassy Creek in Mt. Pleasant right off of I-526 and Long Point Rd near Belle Hall Plantation.  Prices will start at $377,000 for a 1733 sqft home.  The largest home offered is 3293 sqft starting at $485,000.  These homes will have Energy Star Appliances; Energy Star Central Heat/Air; Energy Star Insul; Energy Star Windows; HERS Rated; and Tankless Water Heater.  The community will have green space and a pool.

Call me at (843) 270-6057 or email me if you would like more information.  A buyer’s agent for new construction gives customers added comfort with negotiations and planning rather than relying on the seller’s agent on site.  And it doesn’t cost the buyer anything more.  In fact, it could save you money in the long run to have your agent looking over details with you.

Great News for Charleston, SC!

The Charleston, SC area has had some great news so far this year.

Daimler-Chrysler will invest $500 million their existing Sprinter plant in the N. Charleston area which will create 1300 new jobs.

Volvo just announced that they will invest $500 million in their first U.S. car factory to be located in Berkeley County in Ridgeville creating 4000 jobs.

Dig South Conference gave the Southeast national attention and had 1470 registered attendees this year.

Charleston County’s Academic Magnet School is ranked #7 in the nation for best high schools by U.S. News & World Reports.

 

Spoleto USA and Piccolo Spoleto are scheduled for May 22 – June 7.

Charleston Area Rental Market Snapshot

Investors who are looking to buy property and lease out for a while before cashing in on anticipated appreciation will first look at the avg. cost to rent in the area of interest. All expenses including mortgage, 6% property tax, higher cost of insurance, and HOA/regime fees are all factored when determining how much rent to charge tenants.  Here is a list of avg. $/sf that investors can expect to receive.  The low inventory of rental properties coupled with the increase in tenants has caused rents to go up…a good thing for landlords, but not so good thing for tenants.  Give me a call if you would like me to analyze an area or community for you to see if the ROI is good.  Let me help you get started on making a good investment for your future.

Daniel Island – 7 active rental listings

Avg. Rent – $1.22/sf

Typical tenants include families or Boeing executives.

Downtown – 75 active rental listings, 36 have at least 2 bdrms and 2 baths

Avg. Rent = $2.11/sf

Typical tenants include MUSC or CofC students.  Also, short-term tenants that like to spend lengthy vacations.

Mt. Pleasant – 5 active rental listings; 31 have at least 3 bdrms and 2 baths

Avg. Rent = $1.28/sf

Typical tenants include families moving into the area before they decide to buy or young professionals.

Summerville/Ladson – 156 active rental listings; 126 have at least 3 bdrms and 2 baths

Avg. Rent -=$.79/sf

Typical tenants include Boeing employees.  Also military stationed at AFB, and low-income working families.  Keep an eye out for Volvo employees in this area!

Goose Creek/Hanahan – 52 active rental listings; 39 have at least 3 bdrms and 2 baths

Avg. Rent = $.78/sf

Typical tenants include families and/or military stationed at Weapons Station.

West Ashley/James Island – 80 active rental listings; 43 have at least 3 bdrms and 2 baths

Avg. Rent = $1.00/sf

Typical tenants include young professionals or retirees.

North Charleston – 43 active rental listings; 26 have at least 3 bdrms and 2 baths

Avg. Rent = $.74/sf

Typical tenants include singles, young couples just starting out, and low-income working families.  Boeing employees also.  Keep an eye out for Daimler-Chrysler employees in this area!

Charleston Area 1st Quarter 2015 Real Estate Stats

The Charleston area had 3015 homes sell first quarter of 2015.  This is a 21% increase over the same time last year when 2492 homes sold.  The tri-county area also had a 2% increase in the median sales price of homes that sold first quarter of 2015 ($225,000) over those that sold same time last year ($220,000), according to the Charleston Multiple Listing Service.  Looking at the areas individually below, we see that the areas excelling this year by median price are Daniel Island, James Island, Johns Island, Moncks Corner, and N. Charleston.  The areas that had the highest number of sales are Goose Creek, Mt. Pleasant, N. Charleston, and Summerville.

AREA MEDIAN % CHANGE OVER 2014 1ST QTR $/SF % CHANGE OVER 2014 1ST QTR # OF SALES AVG. DAYS ON MKT
DANIEL ISLAND $615,950 +20% $234 +8% 80 80
DOWNTOWN $483,000 +3% $350 +11% 136 128
FOLLY BEACH $464,296 +2% $256 -2% 32 188
GOOSE CREEK $168,476 +5% $91 +3% 290 72
IOP/WILD DUNES $627,000 -7% $389 +2% 57 184
JAMES IS. $290,000 +18% $162 +9% 190 80
JOHNS IS. $246,000 +16% $140 +6% 109 49
KIAWAH/SEABROOK $535,000 +2% $312 +8% 29 285
MONCKS CORNER $158,000 +33% $81 +11% 56 91
MT PLEASANT $392,500 +3% $189 +6% 487 81
N. CHARLESTON $153,500 +14% $90 17% 303 71
SULLIVAN’S IS. $1,710,000 +4% $506 -7% 7 93
SUMMERVILLE $183,800 +5% $96 +8% 753 71
WEST ASHLEY $219,215 -1% $132 +12% 324 65