Foreclosure in 29401>Question Details

Cheryl, Home Buyer in 22207

Do you foresee the fall in the real estate market nationawide affecting Chas in the future?

Asked by Cheryl, 22207 Mon Nov 5, 2007

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7
Good Question.

No one can answer this question with certainty but the nation does have a small say in Charleston. Over the last sixteen years (since I have been here) Charleston has controled it's own destiny. Many markets that have fallen have done so because economics, inflated home prices and investors controling to large of a chunck of the overall market.

Charleston's growth has been projected for at least two decades. Many people from the Northeast have chosen to escape the cold and snow. Forty years ago they would have gone to Florida but Florida has become congested and now for it's high insurance and questionable medical services. People today are chosing South Carolina and Charleston to be more specific. Charleston has wonderfull weather that includes four seasons, high job growth, smiling faces, award winning eateries and plenty of entertainment. Today Charleston is experiencing growth by people from all over the world.

If I was a betting man I would choose Charleston.

Patrick J. Tivnan
1 vote Thank Flag Link Wed Jan 9, 2008
Since you have asked this prices in Charleston have been hammered and the sales are very slow. No reason to buy.
0 votes Thank Flag Link Sat Feb 21, 2009
I hope you did not listen to any of this advice and buy a Charleston home in 2007. You would have lost a ton of money.
0 votes Thank Flag Link Fri Feb 20, 2009
I have to agree with David on the national implications towards our market. Foreclosures are real. Don't be fooled because you don't see padlocked homes and furniture on the curb. The numbers grow daily. I read a blog the other day of people with good credit actually purchasing a second less expensive home, moving into that home and allowing thier once primary going to foreclosure because of inability to pay the mortgage and not being able to recoup the purchase price from a sale.
My Take on the market? The first quarter shareholder meetings will demand the financial institutions divest themselves of these foreclosures and put the money back to work. The banks will sell these homes at deep discounts to get them off the balance sheets. If these sales are concentrated in one area, subdivision or town it could devalue entire neighborhoods.
My advice to folks wanting to sell? Sell now. A holiday market means less homes on the market, more serious buyers are out, your home probably looks and smells it's best with all the holiday feasting and festivities happening. Interview agents that list houses if you're going to sell. It will make a difference in your marketing campaign and time on the market.
Cheryl, to answer your question, It already has affected our market.
Merry Christmas and Happy New Year
Greg
0 votes Thank Flag Link Sat Dec 1, 2007
Cheryl, the national market, and in particular the national media has already affected the market in Charleston. We have a large number of homes on the market that are not selling. Agents were so spoiled with the previous market that they don't realize that they need to market the home now to get it sold. We are still selling homes in our market but at the same time have seen a lot of buyers deciding to wait it out to see if they can get a better deal in a few months, which I think is foolish as rates are great, prices are down and inventory is up. Chaleston's economy is strong and our real estate market is going to be fine we just need the media to divert their attention to something else, and let us go about selling homes. Another way that it is affecting our local market is for 2nd home buyers and retiree's that are now having either a hard time selling their home back in Ohio or Michigan, etc, and thus can't move here yet or their home value decreased and thus they cannot access that equity to raise the money to buy a 2nd home now. I do not see that changing for a while, it has especially hurt the Myrtle Beach market and thus some real deals can be found in that market at this time. One last thought, all of the national builders that were building here like crazy (Centex, Beazer, DR Horton, KB Homes, Landura, etc) are now all slowing down and postponing developments, etc, and that will drive people to buy resales and will help stabilize the market, too. If I can be of any help let me know, Thanks, David Wertan of Re/Max
Web Reference: http://www.DavidWertan.com
0 votes Thank Flag Link Thu Nov 29, 2007
Honestly, I don't see a solid connection between the national real estate market and our local Charleston market. Many markets across the US, skyrocketed in value during the "boom" of 2003-2005 for no real reason other then interest rates being low and a general "home buying fever". Ours went up a lot as well but we have solid reasons for value growth. Over the last few years Charleston's population, job growth, and income per capita have all gone way, way up. This trend has not slowed down at all, as companies like Google, Boeing, and Chrysler have set up operations and added fuel to the fire. Add to that, Charleston's consistant presence in almost every "best places to live" and "quality of life" list, and you have one strong market that is fueled by simple supply and demand. Population and income grownth leads to constant demand.

I believe that our market is adjusting to a manageable growth pace and the more then 10,000 homes sold here so far this year, attests to my opinion. We have a healthy market that enjoys an isolation from the nationwide slide.

I hope that helps you out Cheryl!
0 votes Thank Flag Link Mon Nov 5, 2007
What's important to keep in mind is that while your local media would like you to think the sky is falling, it's still only a small % of homeowners that are in foreclosure. Real estate, like anything else, is based on supply of demand. Lenders seem to be loosening guidelines, and some economists think that mortgage interest rates will continue to fall even if the fed has no further cuts. Talk to a local Realtor.....has the amount of inventory risen in your market dramatically? Has the average time on the market increased?

I was watching Bloomberg this morning and several of the economist feel that this market is at the bottem and on the road to recover.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Mon Nov 5, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
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