There are some experts questioning whether the current pace of residential home sales is maintainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.
Why the concern?
Some are looking at the last four years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.
However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at quite a natural pace.
And new home sales are way below historic numbers. Dave Liniger, Re/Max CEO explains:
“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation. We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”
The current pace of residential home sales in the U.S. definitely seems maintainable.
Source: Keeping Current Matters
What's Happening Locally in the Charleston, SC Area?
Sales were up 13.6% and median home sales price went up to $245,000, up 4.5% from the first quarter of 2016. It’s becoming challenging to find a single-family home in either Mt. Pleasant or James Island for under $300,000.
Median sales prices per square foot are up: Mount Pleasant now shows over $200/sf, compared to James Island's $185/sf, and West Ashley's $150/sf. The Summerville/Goose Creek areas are still less expensive, at just over $100/sf.
To increase your odds of success in buying a home in this hot market, hire an efficient Buyer's Agent to represent you! Your Buyer's Agent can help you "source" pre-market listings and/or send you new MLS listings before they appear on public websites so you can get a "leg up" the competition, as well as help you negotiate favorable terms and protect your interests throughout the transaction - at no extra cost!
Call or text 843-900-0155 to schedule a free, no obligation consultation with our experienced Buyer Specialist.