Real Estate is Booming!
We had never had a week with over 400 residential properties going under contract in one week. Our highest was 397 just a couple of weeks ago. Only a handful of weeks have ever been of 350. Anything over 200 is good and 300 is great. Almost every week this year has been over 300.
Prices are rising nicely, but the activity doesn’t seem uncontrolled. Most homes are not quite back to their 2006/7 values yet (except in Mount Pleasant).
During the last real estate boom (2003-2007), prices got well above the trend line. But now we are actually below the trend line and have lots of room for appreciation. Houses are not staying on the market long because demand is so high, which is also keeping inventory in check.
So, are we in for another "bubble"?
We don't believe so. Inventory is not going down as low as it was before and that will keep prices from skyrocketing. Also, the process of getting a loan is still pretty difficult these days, lenders are keeping their standards firm. That’s a lot different than it was back in 2006/7.
Demand is strong, as Charleston continues to gets lots of great press and people are moving here in droves. However, new construction is abundant in some specific areas and these can be tough competition for some traditional sellers. We believe we are in a period of steady, sustainable growth. A rise in mortgage interest rates (late 2015?) may dampen demand a little, but we are still in a very low interest rate cycle.
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