In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where
Charleston Area Real Estate Is Over Priced According To Core Logic
Monday morning, many read about housing prices being over priced in the Charleston SC market. We were one of seven areas around the country, reported the Post & Courier newspaper, that have escalating home prices. The source of the information was a national housing information provider named CoreLogic. Their focus is to gather data for different industries, analyze that data and come up with informative insight for the industry.
What does it mean for sellers?
What it means for prospective sellers is that prices are going to start falling because people can't qualify to buy an inflated priced home. What can you do? It's simple enough, get today's buyers in the door by pricing your house in the bottom 10% of similar home listed in your area. This strategy will get your home off the market sooner.
If you're buried in the house because you re-financed every time you had an itch to buy a new boat or car, and you need every last dime out of that home, there's not much you can do but price aggressively from the onset of the listing. Hopefully some of that re-fi money went to keeping the house updated.
What Can Buyers expect?
Buyers need to stay alert and watch interest rates. Buying a house right now isn't a bad deal because rates are still at or under 4%. If the listing prices start to fall, I fully expect to see the interest rates begin to climb. This begs the question, Is it better to have a low interest rate locked in on a slightly higher priced home or have a higher rate on a less expensive home?
Pro-Forma: A loan for $300,000 today vs. a loan for $270,000 at higher rates. The higher priced home will be the better purchase if rates increase more then 3/4 of a point. A full 1% increase in the interest rate on the lower priced home will begin to cost you more per month.
Loan Yrs % Payment Payback
$300,000.00 30 3.875% $1,410.00 $507,856.00
$270,000.00 30 4.25% $1,328.00 $478,165.00
$270,000.00 30 4.875% 1,428.00 $514,982.00
What to do now?
Buy and Sell! Prices are a bit inflated, but rates are still super low. Will you take the chance that the house you want will cut its offering price? Or that rates won't rise more than three quarters of a percent? Don't be short sighted in hopes of saving a few dollars. Make the deal.
The economic engine of this area has ignited. Boeing, Volvo and Sprinter are the solid fuel boosters which will do the heavy lifting. The alchemy of their presence will bring ancillary businesses and people into our area further fueling the economy for decades to come.
Greg Flanagan is a SC Licensed Real Estate Broker affiliated with Remax Advanced Real Estate in Mount Pleasant SC. He can be reached at 843-818-8867.
Greg is a seasoned agent having helped over 250 families sell their current homes and purchase the home of their futures. ....
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