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 6/19/15

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          2.75%
FHA/VA
30 year fixed         3.75%
5 year ARM           2.75%   
JUMBO CONVENTIONAL
30 year fixed       3.875%
15 year fixed       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

2015 Housing Predictions

Realtor.com gave the following five real estate predictions for 2015.

  1. Millenials will drive household formations.  In other words, an increased number of people born in 1980’s to 2000 will head households, and they will drive ? of household formations over the next five years.

  2. Existing home sales will increase by about 8%.

  3. Home prices will gain by about 4-5%.

  4. Mortgage rates will end the year by about 5%.  The Mortgage Bankers Association also projects mortgage rates to be about 5% by the end of 2015.

  5. Home affordability will decrease 5-10%.

Realtor.com 2015 Housing Predictions

Mortgage Rate Quote for Charleston, SC as of 4/29/15

Adam Kernen and Tamara Vandiver of Guaranteed Rate are offering the following home mortgage interest rates.  You can reach Adam at (843) 810-1675 and Tamara at (843) 412-2577 or visit www.guaranteedrate.com/Adam/Kernen.

·         30yr Fixed Conventional is: as low as 3.875%

·         15yr Fixed Conventional: 3.00%!

·         Our popular 5% down Conventional with NO PMI is 4.25%

·         VA 30yr Fixed: 3.625%

·         FHA 30yr Fixed: 3.625%

·         $1 million Jumbo 30yr fixed: 3.625%

*Assumptions:  740 credit score, 30 day lock, with escrows, and other factors may apply depending on program details.   Prices subject to change at any time without notice.  All loans subject to approval. Equal Housing Lender.

Charleston Tri-County Tax Estimators

The following are handy links that will calculate the tax estimate on property you may be considering to buy in the Charleston area.  Remember that 4% rate is for primary residence; 6% is for 2nd homes or investment property; and if you are 65 years or older your primary residence may qualify for the homestead exemption which would lower the tax by about ? or more.   

Charleston County

Berkeley County

Dorchester County

I’on Neighborhood Mixes Neo-traditional With Southern Charm

I’on is a mixed-use neo-traditional style community located in Mount Pleasant off of Johnnie Dodds Blvd. about three miles from the Arthur Ravenel Bridge and downtown Charleston. Founded in 1995, it was one of the earliest full-time residential new urbanist communities developed in the country.  What makes I’on so special is its luxury homes built with a blend of Old South and European architecture.  It’s like entering a mini-version of downtown Charleston, only you’re in the suburb of Mount Pleasant.  The neighborhood has over 750 homes, all custom-made with Southern charm and details.  The homes are built very close together and most have back alley ways for parking behind.  The streets are narrow and designed in a grid-like pattern which creates a calm traffic flow.  Green space and lakes are strategically placed throughout the neighborhood to promote community interaction.  The lot sizes are quite small in relation to other Mount Pleasant neighborhoods (most are .10 acres or less), but what the yards lack for in space, the neighborhood makes up for in common green space.  Two large lakes that are at the center of many annual events, a wildlife refuge called The Rookery, winding walk/jog trails along the marsh and throughout the neighborhood, sidewalks along the streets, a beautiful private clubhouse along the marsh, and a private swim and tennis club.  I’on’s uniqueness is also found in its business community, called I’on Square, located at the main entrance.  Here the residents can walk or bike to the nearby restaurants, shops, spas, and local inn.  There’s even a chartered Montessori School with grades 1-8, and a couple of churches within the neighborhood.  Homes sizes range from about 1000-7000+ square feet.  Home prices range from mid-$400,000s up to about $2 million.  To view all available listings, visit www.MichelleWhitbeck.com.