Monday, November 13, 2006
Summerville SC Real Estate
Why so many homes? Why is the Summerville SC Real Estate market still booming? First, I'll show you the numbers:
2784 transactions have closed this year, compared to 2,904 this time last year. Yes, there's more inventory, but the buyers haven't slowed, they've actually increased. But, the numbers don't show that, right?
In my estimation, of the 2,904 transactions closed year to date in Summerville and surrounding Dorchester County in 2005, 25-30% of them were investors. Based on my same extrapolation, nearly 50%, of those investor transactions (436 sales), have evaporated. This means that more people are moving in and buying a home to actually reside in. That means, sales are up for the end-user (the real appreciation driver) nearly 8%.
As a real estate investor, or potential buyer, you have to look at the Summerville Real Estate market very closely and realize that buying now in the face of a heavy inventory is a sound decision. Many of those investors who aren't buying any longer, are not buying because they are trying to sell. There are 1374 properties for sale in the Summerville area, and some 300 more under contract. Based on the 245 closings (in Summerville) in the last 30 days, there's a 5.6 month supply of inventory. This number was floating in the 3 month-supply range this time a year ago. What this means is that the number of buyers have gone up and the number of listings have gone up even more. With a currently stabilized inventory and demand in the market, I project a gradual up-trend over 2007 for Summerville. With a 5.6 market absoption rate (currently), which is "NORMAL," Summerville real estate will begin to enter seller's market range again in six months at a 4 market absorption if current trends continue.
We'll be analyzing Charleston Real Estate and Mount Pleasant Real Estate in the coming days in this same fashion. You can visit http://www.househuntingonline.com to check the active inventories of listings in our local market.
2784 transactions have closed this year, compared to 2,904 this time last year. Yes, there's more inventory, but the buyers haven't slowed, they've actually increased. But, the numbers don't show that, right?
In my estimation, of the 2,904 transactions closed year to date in Summerville and surrounding Dorchester County in 2005, 25-30% of them were investors. Based on my same extrapolation, nearly 50%, of those investor transactions (436 sales), have evaporated. This means that more people are moving in and buying a home to actually reside in. That means, sales are up for the end-user (the real appreciation driver) nearly 8%.
As a real estate investor, or potential buyer, you have to look at the Summerville Real Estate market very closely and realize that buying now in the face of a heavy inventory is a sound decision. Many of those investors who aren't buying any longer, are not buying because they are trying to sell. There are 1374 properties for sale in the Summerville area, and some 300 more under contract. Based on the 245 closings (in Summerville) in the last 30 days, there's a 5.6 month supply of inventory. This number was floating in the 3 month-supply range this time a year ago. What this means is that the number of buyers have gone up and the number of listings have gone up even more. With a currently stabilized inventory and demand in the market, I project a gradual up-trend over 2007 for Summerville. With a 5.6 market absoption rate (currently), which is "NORMAL," Summerville real estate will begin to enter seller's market range again in six months at a 4 market absorption if current trends continue.
We'll be analyzing Charleston Real Estate and Mount Pleasant Real Estate in the coming days in this same fashion. You can visit http://www.househuntingonline.com to check the active inventories of listings in our local market.
