Why isn't the Latest NAR Change Keeping Me Up at Night?
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IN THE NEWS
Landmark Real Estate Settlement Alters Longstanding Agent Commission Policies
The National Association of Realtors just settled a hefty $418 million lawsuit, shaking up the game by scrapping certain commission rules. Now, home sellers can negotiate agent commissions directly, stepping outside the traditional MLS box. And agents? They need to ink a formal agreement with buyers. Experts think this might trim down commissions and inspire some buyers to skip agents entirely.
But here's why I'm not fretting: Just as a handful of sellers might venture agent-less, most buyers aren't seasoned real estate gurus. Navigating market trends and transaction norms is tricky, and that's where savvy agents come in.
For us in the brokerage biz, snagging listings is our bread and butter. Listings aren't just properties; they're our billboards, giving us more sway in the sales dance.
Yes, the competition for buyer attention is heating up, what with Zillow and burgeoning A.I. technologies joining the fray. However, there’s always a spotlight for agents who blend local insight with market savvy. In a world where tech is king, the human touch and deep market knowledge still reign supreme.
Source: postandcourier.com
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?PAUL'S MARKET PHILOSOPHY
Charleston Multi-Family Market Review: Q1 2024 Analysis and Outlook
Alright, let's break down Charleston's multifamily market for Q1 of 2024:
So, vacancy rates in Charleston? They nudged up just a smidge, from 10% in the last quarter of 2023 to 10.1% now. But hey, don't freak out. It's just a tiny bump, mostly because there are more units on the rental market. This isn't just a post-pandemic boom; it's been in the works since before COVID even hit. We're talking major developments popping up in places like the Upper Downtown Peninsula, Goose Creek, you get the idea.
Now, here’s the kicker: all these new fancy digs haven't put a dent in how much people are paying for rent. We’re looking at an average of $1,734 per unit. Pretty stable, actually. While other big cities are seeing rent prices drop like a hot potato, Charleston's just steady. It’s like everyone agreed to not rock the boat, even with all these new units coming up.
But wait, there’s more. Construction has actually slowed down a bit. This time last year, there were 7,500 units in the pipeline. Now? It's down to 5,966. That's the lowest since 2022. And with the cost of borrowing money these days (ouch), don't expect a construction frenzy anytime soon.
Now, let’s talk money. The market sales price per unit had a wild ride during COVID, hitting a high of $240,000. Pre-COVID? More like $150,000-$160,000. Fast forward to now, and we’re sitting at around $212,000 per unit. That's down from $224,000 last year but up from $210,000 in late 2023. Looks like things are finding their balance.
Here’s my take: Prices seem to be settling down. They might dip to around $200,000 later this year, but I bet they’ll bounce back early next year. It’s all part of the market’s ups and downs. Everyone's buying and selling at around a 6.4% cap rate, and anything less than that isn't getting much love unless it's a top-shelf property in a prime spot.
So, what's the big picture? No dramatic drops in prices or rent. Rent's pretty steady at about $1,734. Looking ahead, 2024 and 2025 might be the slowest growth period we've seen in a while, but we’re expecting things to pick back up to a healthy 3% growth rate soon. Compared to other coastal markets like Orlando or Atlanta, where prices are doing the limbo, Charleston's holding its own, thanks to a strong job market.
Your turn - What's your take on Charleston's multifamily market? Are you seeing the same trends, or is something else catching your eye? Let me know – your insights are gold for understanding where we're headed.