Summerville SC Real Estate Market Update

During the first quarter of 2010 (January through the end of March), 322 homes sold in Summerville, SC.  The average days on market (DOM) was 86, and the median sales price for these was $150,000.

Comparing the first quarter of this year to the same time frame last year, you’ll see several positive trends in the market.  The number of closed homes is up considerably (compare the 322 for this year to the 288 for last year).  Homes are taking less time on the market to sell (compare the average of 86 days it now takes to the 106 for the first quarter of 2009). 

The percentage of the sales price to listing price in 2009 was 97%.  This means that last year around this time, sellers were, on average, able to get 97% of the price they asked for in their homes.  This year, sellers are getting slightly more at 98%.

What does this ratio mean?  In a nutshell, sellers are getting more realistic about pricing their homes to sell.  They are pricing their homes more reasonably when they list, and they’re not having to take the low-ball offers that so many buyers are plaguing most sellers around the country.

Although most of the sales statistics for Summerville are promising to sellers, you’ll see one trend that shows it’s still a buyer’s market.  In comparing the first quarters of this year and last year, the median sales price for homes has dropped almost $20,000!  (Median price for last year was $169,000, but the median this year is $150,000.)

Berkeley and Dorchester Counties have seen the biggest drop in home prices for all of Charleston.  Although the number of sales has increased across the board for the entire Charleston MLS, the median home price in Dorchester and Berkeley has decreased significantly, while parts of Charleston County (such as Mt. Pleasant) have seen an increase in sales price – a trend that goes against what most of the markets in the rest of the country are experiencing. 

Although the stats can’t tell us why this is happening, I can only guess – based off so many of the conversations I’ve had with home buyers – that this is because buyers are now able to afford some of the homes that were out of their reach in the past.  Some of the most sought after areas in Charleston (James Island, Mt. Pleasant, West Ashley) are also some of the most expensive.  It’s the basic rule of supply and demand. 

So many local buyers have told me that they originally wanted to live in Charleston County, but they found that the homes were too expensive once they started house hunting.  As a result, they opted for the towns and cities further inland, such as Summerville, North Charleston, and Goose Creek.  However, now they either 1)  have equity in their homes and can afford to buy up, or 2) have seen prices come down in some of the areas of Charleston County.  So, they’re now trying to move closer to downtown Charleston and the beaches.

Regardless of the reasons, everything boils down to the numbers.  The good news for sellers in Summerville is that it should take less than 3 months to sell their home.  The price range where most of the buyers are is that $150K mark.  So, if your home is in this range, it should be easier to sell.

The decline in the average sales price is sour news to sellers but great news to home buyers.  After all, they’re able to get in at prices that were comparable two and three years ago.  Reduced prices and historically low interest rates should continue the steady stream of home sales in Summerville, SC.