Mike Montage Message Quick take away - check out -myhomevalue.carolinaone.com/mikecassidy
Welcome to August, where has the past week, month, year gone? Sense many have been in action seeking out opportunities!
WOW! - it is hard to believe over the past 12 straight weeks real estate activity in our market has hit a new high with a record week, this past week outpacing 2018 with purchase activity in the Charleston market. Last week saw 499 properties go under contract market wide. Given this is a virus period time it will be very interesting to see what August brings, certainly from my book of business on both residential and commercial fronts there seems to be no slow down in the current momentum fueled by limited inventory, super low interest rates and an influx of individuals tired of big city living and seeking the charm that is the metro Charleston area. 15 years resident and still a great place to work, rest and play with its temperate all year round weather conditions.
In wishing to give you a cliff note prospective of the market here are some key indicators to consider :
(1) The last twelve weeks are the best twelve weeks our market has ever seen in terms of ratified contracts. The bottom of the market appears to have been about 17 weeks ago.
Remember why we focus on ratified contracts as opposed to closed sales...closed sales were ratified 5-8 weeks ago and reflect buyer sentiment at that time. Ratified contracts tell us what buyer sentiment is currently...and what the number of closings will look like in a month or two. Activity remains brisk and personally put a listing under contract within 48 hours of going on market with multiple levels of buyer interest. Also 3 other homes this past month went under contract. Is it time to take a fresh look at your real estate plans whether buying, selling or investing - call or email with a convenient time to have a discovery chat. What have you got to lose, indeed might I suggest you have everything to gain!
(2) Where is the activity? I am frequently asked where the Multiple Listing Service (MLS) is most active. Check out closed sales data to end 6/30/2020. If unable to view let me know and I will send over this market update!
(3) Inventory shortage continues to deepen. Tri-county needs more than 7,300 additional listings market wide to achieve a balanced market (6 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 growing each month. Curious to know the valuation on your property then for a quick estimate on your home's value go to my free online tool at myhomevalue.carolinaone.com/mikecassidy
Be assured I have the knowledge and support to safely list and sell homes in this environment and marketing tools to reach out ensuring maximum exposure of your home to the largest possible number of people all with the objective of ensuring you secure the best selling price . If this piques your interest, know I 'm here to answer your questions being uniquely positioned to solve issues to your complete satisfaction.
If you are debating whether or not this is a good time to put your home on the market, I believe the answer is "yes" because demand is at sustained all time high and supply is well below where it needs to be to meet the current demand. This doesn't mean becoming detached from reality with pricing - naturally the price must be compelling to a prospective buyer. Furthermore positioning to market is always highly dependent on the part of town where you reside as well as and price range. That said there is an absolute need for more inventory based on current activity levels. So are you ready to move up or right size then simply make that call to my personal cell 843-9069669 for a no obligation chat! Seize the opportunity presented which is unique.
(4) New construction represents roughly 37% of all pending contracts in the MLS. This is a above average the norm being around 25% and emphasis the need for my targeted marketing which seeks to show pre-owned is better than new through my suite of marketing tools..
(5) Foreclosures and Short Sales represent 1.1% of all available listings currently. This is down from 2.2% of all available listings on 10/15/2019. This market is basically nonexistent currently.
(6) Properties over $1MM are moving much better than normal - all of a sudden.
- A "typical week" will see between 10-15 properties listed over $1MM go under contract
- That would mean that a six week span would normally see 60-90 $1MM+ properties go under contract
- The last six weeks have seen 242 properties listed over $1MM go under contract marketwide
(7) Future considerations
- Unemployment remains high nationally and this may impact on the housing market - although keep in mind the previous 2 monthly job reports have been shockingly strong. Furthermore our local economy has proven to be very resilient fueled by individuals wishing to relocate to the area.
- The process of easing restrictions has paused and there appears to be a movement to re-tighten restrictions as cases have predictably spiked after the economy has been partially opened back up locally. Many businesses and households are adopting a wait and see attitude as this crazy market continues to shift almost on a weekly basis
- There are large numbers of mortgages that are delinquent nationwide.. With very generous "no proof of hardship required" forbearance measures in place, it is difficult to know how many of those delinquent notes are simply gaming the system and how many have a legitimate need. It is also impossible to know how many with a legitimate need will regain employment before forbearance ends. Crystal ball in action I suspect that while the number of delinquencies is very high, the "cure rate" of those delinquencies will also be very high. Guess time will tell.
Wish to take this opportunity to thank all my clients who have continued to reach out these last few months. As a community connector I know this has been a very challenging environment for many and I am grateful to continue enjoy good health, whilst practicing social distancing, safe in the knowledge I'm here to support you! So how can I be of best help?
Signing off as your friend in real estate aka US SCOT
MC