Wednesday, March 19, 2014
A research tool provided by the Charleston Trident Association of Realtors
It is tempting to confuse market normalization with a possible slowdown. But those equipped with high-quality MLS data know better.
As mortgage delinquencies fade, banks are listing bargain-priced product less often. That means investor activity – which accounts for a substantial market share — is moderating. That is not to say that rates and prices aren't still attractive to owner-occupant buyers.
They most certainly are.
Some short-term volatility is expected as part of a normal market readjustment.
New Listings in the Charleston area increased 9.0 percent to 1,545. Pending Sales were up 9.1 percent to 1,125. Inventory levels shrank 8.9 percent to 5,673 units.
Prices marched higher. The Median Sales Price increased 15.0 percent to $209,000.
Days on Market was down 14.5 percent to 79 days. Absorption rates improved as Months Supply of Inventory was down 22.8 percent to 5.2 months.
The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction.
There is no denying the fact that we have now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There is still work to be done.
Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.
For more information on the Charleston Trident Association of Realtors, visit them online at www.charlestonrealtors.com or call 843-760-9400 to learn more.