Posted by Jonathan J. Miller -Tuesday, August 26, 2008, 12:07 AM
The research for this monthly market report is provided by Brad Rundbaken, of Diversified Resource Group, LLC, a real estate appraiser, consultant and investor with a stock brokerage background. He analyzes the Charleston real estate market using the Charleston-Trident MLS and inserts a lot of extra analysis on the national housing market. In fact, he crams it in there and he’s not afraid to share his opinions. He was terminated by his former employer (an appraisal firm) once he started publishing his market stats in 2006. However, honesty pays and he tells me his new venture is thriving.
Here are some of his observations pertaining to the overall Charleston market.
- The average sales price dropped 6.6% in the Tri-County region compared to the prior year quater.
- Q2 2008 sales are down significantly at -33.5% compared to the prior year quarter.
- Due to economic weakness and tighter credit conditions sales have slowed by 33.5% and inventory has grown 11.3% since last year in the Tri-County Region.
- Days on market has also increased by 31% since Q2 2007.
- The Tri-County Market spring quarter did not live up to expectations of many local realtors and experts. Many are being quoted that it will get better next year. Based on what? Higher interest rates and a economy in a recession?
- As inventory continues to rise the % Diff Sales to List Price has increased the most in Charleston County. This increase in the Discount can be attributed to buyers getting better deals on the higher end of the market which encompasses Charleston County in such areas as Mount Pleasant and the beaches.
- As I have stated before there is a “shadow inventory” that is not transparent in the MLS statistics that is very worrisome. I have seen months inventory in the years after completing Market Analysis Studies for developers.
- The CMR is very concerned about the high end of the residential market. These are the most risky loans to banks and inventory continues to build to extremely high levels.
- The CMR predicts the average price per square foot will continue to decrease in many areas until the credit markets get back to normal. It is important to remember that many upgrades, discounts and closing costs being paid by sellers often do NOT show up in the Market Matrix. Real estate often has visibility issues with regards to the true price trends. An appraisal or Market Analysis should provided more transparency if done properly.
Review the report for more details on the tri-county market area as well as many other market areas. Chocked full of data.