Category Archives: Real Estate on Daniel Island
By most accounts Charleston, South Carolina has been the one glimmer of hope throughout the country in the housing sector. We have been on top of the housing recovery almost from the start. If you live here then you are not surprised by this. The area’s most populous county accounted for 502 homes sold, 57 percent of all homes that changed hands last month within the three counties, according to the Charleston Trident Association of Realtors’ monthly home sales report released Wednesday.
Berkeley, Charleston and Dorchester counties combined for 876 sales in September, 13 percent more than the same month a year ago.
The association’s monthly reports have been showing encouraging residential real estate trends since the fall of 2011. Sales have been rising, inventories have been falling and the uptick in median sales price suggests that broader real estate values are starting to rise.
The Charleston area sold 7,879 homes through September, a nearly 11 percent increase compared to the same period a year ago. The median sale price also has risen to $190,000, up from $179,850 a year ago, according to the association.
Charleston County also is leading the charge in slimming the average number of days a property sits on the market before being sold, bringing it to some of the shortest spans since before the last recession. All three counties averaged house listings before sold in 100 days or less on average. In Charleston the average was 87 days.
Charleston SC home builders even have reason to be excited as national new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.
Home builders have become increasingly bullish — a confidence index from the National Association of Home Builders reached its highest level since June 2006.
Excerpts by the Post and Courier used:
Buying a house in Charleston, Mount Pleasant, or even Daniel Island is now cheaper then renting according to a new report from the real estate website Trulia. In virtually every U.S. city it’s better to buy a house then to rent.
“Despite the recent home rebound, rents continue to rise faster then do home prices, and mortgage rates are at record lows,” said J. Kolko, Trulia’s chief economist, in a news release by The Daily.
On average, buying is now 45% cheaper then renting in the 100 largest U.S. cities – a savings of almost $800 a month. With more and more home owners having to leave their homes due to job loss, and a poor economy forces those same people to rent thus increasing the demand for rental properties forcing rent costs upward. Furthermore, mortgage lending is still very tight and less people are qualified to purchase.
These factors result in an almost 5% surge in rental rates in the past year and a glut of 30 yr mortgages around 3.5 percent. Trulia looked at the average age price of all homes for sale and the average rent of all homes for lease between the beginning of June and the end of Aug. It spread its search from the inner cities to the suburbs. Trulia also baked in various expenses like closing costs, maintenance, renter’s insurance, and taxes.
After the analysis was completed in the winter, it was better to buy in 98 of the top 100 markets including Charleston, South Carolina’s. Purchase mortgage rates have dropped while rents have increased. The study however, is built on some big assumptions, primarily that the hypothetical buyer puts down 20% and qualifies for a great mortgage AND doesn’t sell for 7 years.
With that said, even in a case where the homeowner got just a 4.5% mortgage and only stayed in the home for 5 years, the result was still almost the same. It was cheaper to buy in 96 markets.
Nevertheless, some 6 million properties remain close to foreclosure, and most potential buyers still find it difficult to save up the 20% for down payment. Although there are still loans that only require 3.5% down.