Charleston, SC Real Estate Market Update July 19, 2010

Aug 14th 2010

Posted By: Brian Beatty @ 9:28am In: Market Update

9943 active listings. A sign that late 2011 may trend us toward a more favorable market with flat prices and sustainable sales levels although, I see no real appreciation until 2012.

1830 Pending Transactions (lower each week - but not falling as rapidly)

There were 214 closings in the first half of this month as compared to 430 in the same period in June, representing a 51% decrease in sales closed in July. At this pace, we'll see our worst sales month this year, in July. Absent of government supported initiatives, this shows there is still virtually no strength in real estate fundamentals or prices.

Activity has picked up slightly and the pending index is not falling as much, but sales are not accelerating as expected for the time year; only remaining flat. So, I don't believe we're about to "fall off another cliff." I do however, think, that prices will fall another 7-10% in most areas/price ranges over the next 6 months.

My recommendation is to consider price reductions as a strategy as 25+% of all homes for sale have seen a price reduction in the last 30 days. Obviously, if we've just completed a price reduction, we should wait two weeks and judge our activity.

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