Mount Pleasant Real Estate: Doing Better Than We Think!
We keep hearing about how terrible our market is, how prices have tumbled, etc. The graph of Median Home Price for Mount Pleasant on Trulia.com since the year 2000 (see below) tells another story: According to this graph, the picture is not so bleak: We are back to 2004-2005 price levels! Which brings us to the point of this article: Real estate should NOT be considered a liquid asset, bricks and mortar should be considered a LONG-TERM investment. One big difference between real estate and stocks: Real estate has an intrinsic utilitarian benefit that stock lack - you can live in it or rent it out (it also has some "carrying costs": taxes, insurance and maintenance).
Traditionally real estate in the U.S. has appreciated 3%-4% per year. It is very probable that it will continue to do so in the long-term (basic demand and supply: More people, same amount of land). Mount Pleasant will probably fare better than average, given that it is a safe, coastal community with great schools and warm weather. However, the last 7-8 years were an aberration, just like the one the stock market experienced with the DOT.COM boom/bust.
We are slowly returning to a "normal" market:
- inventory in Mount Pleasant has come down 49% from the peak in 2007;
- one out of every four "for sale" signs that you see in Mount Pleasant is currently under contract! and
- inventory for entry-level housing (under $300,000) is down to 5-6
First-time home buyers seem to be realizing that they are buying a home first and foremost to live in and enjoy the benefits of home ownership, and second, for investment/wealth building purposes. This is a welcome change of mindset!
The Alan Donald Real Estate Team provides professional buyer and seller representation. Contact us today for a no-obligation consultation.