Is This Summer The Ideal Time To Sell Your Charleston Home?
This is an opinion article about Charleston real estate and the value of your Charleston home.
If you’ve been following the news, you would have heard that the Federal Reserve is likely to raise interest rates when they meet on June 15th. It’s been all over the news in these past few weeks. Here are a few of these articles: NY Times Reuters Forbes.
This may make it more expensive for people to own a home by raising their mortgage payments. A 1% rate hike decreases buying power by more than 10%, and also reduces the potential pool of buyers for your home, therefore decreasing demand and potentially lowering the market price for your home (which is determined by supply and demand).
After a 4-year run up in home prices since the 2007-2010 recession (see Median Price graph from MLS, click to enlarge), this may be the last chance (for a while) to get the maximum price for your home.
Want to know what your home would sell for today?
Enter your home address here to learn what your Charleston home is worth.
Real estate is cyclical. The million-dollar question is when the momentum will change! We may see a market correction as early as later this year, next year or in 2018. I don't think this market shift will be a "bubble bursting" event like the one we saw in 2007-2010, given that the fundamentals of the economy are much more solid, and that lending practices are still tight.
Here in Charleston, we’re still seeing areas with very tight inventory. This means if you list your home at the right price and promote it well, it will sell quickly and could possibly sell above asking price.
Although inventory is still low, in some areas (like Mount Pleasant in certain price points), showings have slowed down a little. The graph shows year-over-year number of showings for pre-owned Mt. Pleasant homes by price point (source: Showingtime). Many new home construction neighborhoods in Mount Pleasant also report a 25%-30% decrease in walk-in traffic. Normally, the Mount Pleasant market leads the rest of the Charleston Metro Area.
Is this due to election jitters, or are we in for a more permanent market correction? Only time will tell.
If you are THINKING of selling your Charleston home in the next two years, this summer may be the BEST time to sell at a high market price.
If you are considering a move, we have a special gift for you: We purchased all the recent Charleston Area Residential Real Estate Market Data and put it on our website for you – for free. Register here to access this information.
You can also find out an estimate of what your home is worth right now, based on recent sales in your area.
(This tool is free to you. The value is estimated using the same information we use to help determine list prices).
Please remember this is an estimate of value. Factors - such as your lot premium, kitchen, bathrooms, condition and improvements - may affect your ACTUAL market price.
If you’re thinking about selling your home, call/text us at (843) 864-3777 or send an email to alan@alandonald.com.
We can help you determine at what price it will sell for today – at no charge.
We have worked with many home buyers recently and know exactly what home buyers are looking for. And our price estimates are right on the money! (Our average Sold/Original List Price for the last two years was 97.62%, while the average for the Charleston MLS was 91.14%).
If you’re thinking about buying a home, we’ll share with you the areas in Charleston where home prices are still affordable, and those areas where market dynamics are forcing sellers to drop prices and negotiate with buyers. And don't forget about the super-low interest rates!
We can also help you find a low, fixed-rate mortgage without junk fees and with a minimal down payment (with a lender who does NOT over-promise and under-deliver).
In summary: Our economy is improving, we are reaching full employment and interest rates are on the rise. Alhtough inventory is still low, a rise in mortgage rates may trigger a potential shift in our local real estate market. This is the summer to sell your Charleston home for top market price.
So, we invite you to find out what your home will sell for with our home value report online tool. It’s free to you.
You can also email me at alan@alandonald.com or call/text (843) 900-0155. We’d be happy to answer any questions you have about Charleston real estate.
Please contact us if you have any questions or comments.