Market Update Downtown Charleston

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Denis Watts
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1 Market Update Downtown Charleston Special thanks to our Hospitality Committee Matt O Neill Dorothy Morgan Becky Johnston Ann McAnallen Brenda Piaskowski

2 The luxury market in historic downtown Charleston, SC is thriving in Charleston, as a whole, didn't take as large of a hit in real estate sales and values as the rest of the country through the economic downturn of the most recent years. Charleston has been consistently named as a top 5 real estate economy by Forbes and Money Magazine between the years of 2008 to The main reasons Charleston's market has stayed strong are due to the influx of major industry to the local economy and due to national press and notoriety. Charleston was named the #1 city in the United States by Condé Nast, replacing San Francisco for the top honor in Additionally, Charleston has won large contracts for industry since 2005 with companies such as Boeing, Amazon, Google, and People Matter. This combination of national prestige and increased jobs and industry has kept Charleston's real estate market strong. The historic section of peninsula Charleston is the most coveted and prestigious real estate available in Charleston. The top neighborhood within this community is named 'South of Broad' due to it's location south of Broad Street. Here you will see horse drawn carriage tours, 200 year old homes, large piazza porches, and Southern Charm. Over the past 12 months, 48 homes have sold in Historic Charleston over $1 Million and five of these sales have been over $3 Million. Conversely, there were over 100 sales between $500,000 and $1 Million, many of which were condos and townhouses. Inventory has been decreasing as of late. There are only 124 available homes over $1 Million, which is down 15% from this time last year. Inventory of homes priced less than $1 Million is down nearly 25% from this time last year. The average days on market does not vary much by price point in this market area and has averaged 275 days for the past 2 years. Sales price as a percentage of list price ranges from 91% for homes priced less than $1 Million to 87% for homes priced over $1 Million. The months supply of inventory is still not ideal, but is decreasing. There are roughly 14 months of inventory at the current pace of sale for homes priced less than $1 Million and there are about 25 months of inventory for homes priced $1 Million to $3 Million. This is about 1/2 of the months supply of inventory we saw last year in Charleston. As inventory levels continue to decrease, and as demand for luxury real estate in Charleston, SC continues to remain strong, prices should begin to rise over the next few years. At this point, prices have remained fairly consistent from 2011 numbers and have leveled out after a long decline from 2007 to Charleston has actually seen a slight increase in price per square foot sales from January 2012 through October In conclusion, the Charleston luxury market downtown is doing quite well and should continue to remain strong. - Matt O'Neill

3 Neighborhood Detail Matt O'Neill RE/MAX Advanced Realty (843) Single Family Homes in CHARLESTON, SC This Week Real-Time Market Profile Trend The median list price in CHARLESTON, SC this week is $1,272,500. The 162 properties have been on the market for an average of 366 days. Inventory has been lightening lately and the Market Action Index has been trending up. Though days-on-market is increasing, these are mildly positive indications for the market. Supply and Demand The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes. Median List Price Average List Price Asking Price Per Square Foot Average Days on Market (DoM) Inventory of Properties Listed Most Expensive Listing Least Expensive Listing Average Age of Listing Percent of Properties with Price Decrease Percent Relisted (reset DOM) Percent Flip (price increased) Median House Size (sq ft) Median Lot Size Median Number of Bedrooms Median Number of Bathrooms Market Action Index Altos Research Value Statistics Strong Buyer's $ 1,272,500 $ % n/a 9 % ,501-6,500 sqft The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies a seller's advantage. Below 30, conditions give the advantage to the buyer. Trend Key: ±+ No change $ 1,885, $ 23,000,000 $ 34, == == == == Strong upward trend Strong downward trend = Slight upward trend Slight downward trend 0 Characteristics per Quartile Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM Top/First $ 3,397, acre Most expensive 25% of properties Upper/Second $ 1,597, ,501-6,500 sqft Upper-middle 25% of properties Lower/Third $ 898, Less than 4,500 sqft Lower-middle 25% of properties Bottom/Fourth $ 417, Less than 4,500 sqft Least expensive 25% of properties Page 7 of 11 Monday October 8, 2012

4 Neighborhood Detail Matt O'Neill RE/MAX Advanced Realty (843) Single Family Homes in CHARLESTON, SC Median Price The market for this zip code continues its bounce again this week. We're a long way from the market's high point so watch the Market Action Index to predict how long this trend will last. 7-day Average 90-day Average Quartile Prices In the quartile market segments, we see prices in this zip code have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels. First/Top Second/Upper Third/Lower Fourth/Bottom Page 8 of 11 Monday October 8, 2012

5 Neighborhood Detail Matt O'Neill RE/MAX Advanced Realty (843) Single Family Homes in CHARLESTON, SC Price per Square Foot This is a market where watching the value metrics (like price per square foot) can provide insight that you don't get at first glance. Despite the fact that home prices are rising fairly consistently, the price per square foot of homes listed is declining. Often this can be attributed to new and remodeled homes on the market. Buyers in the area are paying more but also getting more for their money. 7-day Average 90-day Average Inventory of Properties Listed for Sale Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply. 7-day Average 90-day Average Page 9 of 11 Monday October 8, 2012

6 Neighborhood Detail Matt O'Neill RE/MAX Advanced Realty (843) Single Family Homes in CHARLESTON, SC Market Action Index The CHARLESTON, market is currently quite strongly in the Buyer's Advantage zone (below 30). The 90-day Market Action Index stands at With several months of inventory available at the current sales rate, buyers should find ample choice. 90-day Average Buyers/Sellers Cutoff Market Action Index per Quartile Not surprisingly, all quartiles are in the Buyer's Market zone with several months of inventory given the current levels of demand. Watch the quartiles for changes before the overall market shifts. First/Top Second/Upper Third/Lower Fourth/Bottom Buyers/Sellers Cutoff Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer s Advantage zone (below 30) for a long period, prices are likely in for a downward correction. Page 10 of 11 Monday October 8, 2012

7 Neighborhood Detail Matt O'Neill RE/MAX Advanced Realty (843) Single Family Homes in CHARLESTON, SC Days on Market The properties have been on the market for an average of 366 days. Half of the listings have come newly on the market in the past 276 or so days. 7-day Average 90-day Average Days on Market per Quartile It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles. First/Top Second/Upper Third/Lower Fourth/Bottom Page 11 of 11 Monday October 8, 2012

8 RESIDENTIAL MLS SUPPLY AND DEMAND for DOWNTOWN CHARLESTON (51-52) CURRENT ACTIVES & PRIOR 6 MONTH SOLDS through JUNE 30, 2012 Avg MLS Sold Days On Market is 280 days - Absorption Rate is 12 months 0-99, , , , ,999 provided by 160, ,999 Carolina One CURRENT ACTIVES SOLD PRIOR 6 MONTHS AVG SOLD CDOM Absorption Rate (months) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , M - 1.5M 1.5M - 2.0M 2.0M + All information provided from Charleston Trident Multiple Listing Service. Information deemed reliable but not guaranteed.

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Current Real Estate Market Conditions for Single Family Homes Trends in Pricing Current Levels of Supply and Demand Value Metrics

Jon's MARKET UPDATE Current Real Estate Market Conditions for Single Family Homes Trends in Pricing Current Levels of Supply and Demand Value Metrics Report for the week of February 14, 2011 Presented