This past week our Team attended the REOMAC conference in Florida.  These conferences are attended twice per year as they provide the most up-to-date analysis of the economics and statistics in the housing market.  For the staggering foreclosure numbers, Nationwide, please see the separate article posted "Foreclosure Update for Charleston, SC." 

Not included in the article (due to the local nature) is a private conversation with Rick Sharga, the VP of Realty Trac.  When asked "what are you seeing in Coastal South Carolina, specifically Charleston?"  his response was "you guys are really hitting the radar on foreclosures.  A few months back you were off the radar, now you're in the top 15 of all Foreclosure reports."  He added that he thinks we'll strengthen/stabilize when jobs get better, but in the interim, our foreclosure numbers are huge by contrast to just a year ago and still gaining speed.  This means only one thing:  more depreciation even as the Nation may be stabilizing.  Charleston Tri-County, by volume, is the hardest hit area of the State. 

Another thought, brought out by Chris Thornberg, economist, is a very eloquent version of what we have been reporting:  "The market recovery has already happened.  It was 2006-2009; that was when prices recovered back to what they should be."  Those people who keep saying they are waiting on the market to get better, are basically saying, "they are waiting on the next bubble to happen."  For those waiting for the next bubble to start you're likely looking in the 2015 time frame. Real Estate doesn't typically react normally:  it's either a boom and bust market.

By the numbers, sales are on pace for Charleston to remain flat over September (in October), pendings are stable (a good thing for this time of year) and inventory is declining slightly.  All of these reports and the local numbers point to roughly 2013 being the next "normal" year of numbers (re:  inventory, foreclosures, price gains).  The foreclosure freeze has definitely slowed us, but probably won't contribute to any more price declines that the market would find naturally.

Overall, the economy is improving and will show notable recovery over the next year.  Jobs will be slow to return, even during this economic recovery.

Reportings on REOMAC Conference by Bryan Crabtree.

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