I get asked a lot about how the real estate market is doing, and I always defend against the bad news out there. There is plenty of data to support the doom and gloom that is portrayed in the media, but each time there is good news buried at the bottom. How about some good news! The final numbers are not in yet for July from the Charleston Trident Association of REALTORS, but how about a sneak preview. Estimated numbers for July have the Charleston, SC tri-county area selling 834 units as compared to 685 units in 2010. That represents an almost 22% increase in sales for July from 2010. But hold up! Remember last year the First Time Homebuyers Tax Incentive ended in June. So how many of those buyers would have bought in July of last year instead? And how many of them bought only because of the tax credit? We no doubt have a some work remaining to get closer to a normal market.
What is a normal market? An estimated normal market is 5-6 months of available homes for sale. Too many homes and not enough sold has been the problem the last couple of years. That inventory is getting less
and less. If we have steady sales with a continued decline in inventory, this is a sign that we are tracking our way towards recovery. Comparing July this year and last, 283 less homes were put on the market. According to the Charleston, SC Multiple Listing Service, approximately 16% less homes have entered the market place for sale YTD compared to last year. To date, there is more than 8,200 units available for sale. I remember in 2008/2009 when I saw numbers of homes for sale closer to 12,000! Lower inventory is sign of good news!
I am always on the prowl for good news, and I am happy to send it your way. If you have a good bit of news, send it may way as well!
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