MONTHLY MARKET STATS
(Single family homes including condos, townhouses and patio homes. Mobile homes excluded)
29072 & 29073 OCTOBER (september)
Number of Closed Sales: 102 197
Average Sales Price: $236,769 $211,797
Average Days on Market: 60 60
Although number of closings was down in October from September, sale prices increased slightly.
LAKE MURRAY, SC All Areas-Waterfront
Number of Closed Sales: 26 23
Average Sales Price: $501,203 $489,913
Average Days on Market: 71 183
The number of closings and sales prices are up slightly, while days on market decreased significantly in October. This means that more homes sold for a higher price in less time.
All data comes from the Consolidated Multiple Listing Service, Inc which is reliable but not guaranteed.
OVERALL MARKET UPDATE
**November 2016-October 2017**
All Areas of the CMLS Region
Supply will dip for the remainder of the year, but there are some hopeful signs that we may see a bump in the new year. To say that more inventory will immediately impact housing markets is premature, especially if affordability continues to drop and prices continue to rise. For the 12- month period spanning November 2016 through October 2017:
MEDIAN SALES PRICE: $159,900 1.2 percent Increase.
PRICE RANGE w/ MOST SALES: $200,001 - $300,000 10.6 percent increase.
PRICE RANGE w/ QUICKEST SALES: $100,001 - $150,000 at 63 days.
For residential real estate in 2017, the news has continued to provide a relative sense of calm for both buyers and sellers. The national unemployment rate registered in at 4.1 percent for October 2017, which means that joblessness has not been this low in the U.S. since December 2000. Another positive, mortgage rates have held steady at or near 3.9 percent. Historically, the average rate has been around 6.0 percent. These factors help to keep the pool of potential buyers full, even during the so-called off-season of home sales.
NEW LISTINGS: 1,348 21.9 percent increase.
PENDING SALES: 1,026. 16.1 percent increase.
DAYS ON MARKET: 67 14.1 percent decrease.
Although inventory levels are low in many markets, there has largely been enough listing and building activity, or at least conversation about future activity, to maintain a positive attitude about the prospects of buying or selling a home. Low affordability has started to become a recent topic of conversation and is worth watching. But with a healthy economy, level of demand and national unemployment rate, sellers are going to continue to see strong prices for their homes.
Source: CMLS Reports: Housing Supply Overview and Monthly Indicators October 2017
- Booming local economy. Local businesses are hiring at a brisk pace. New companies are opening up shop.
- Low existing housing inventory. More jobs are coming into a market where there's not enough inventory to house all the workers, thus creating financial pressure on local resale units.
- Builders are not producing enough homes to fill the job base.
- Home sales prices are escalating.
- Buyer contracts begin to come in non-contingent. Buyers want to purchase a house, period. They no longer offer under list price, ask to sell their house first before settlement, or try to buy without financing already approved. There is no negotiating for the "perfect" terms. Getting the house is the perfect term.
- Seller subsidies disappear. While buyers used to ask for some sort of assistance -- lower price, points paid, closing costs -- the buyers must come to the table without any help from the seller.
- High down payments become the norm. Buyers benefit from high appreciation and begin bringing down payments such as 25-plus percent to the transaction.
- Appraisals are no longer needed to qualify for the purchase price. With down payments of $100,000-plus, there's plenty of equity coming to the table to ease the risk factor for most lenders so that the appraised value is not as important as the actual purchasing price. If the appraisal comes in $20,000 less than asking price -- that's okay, because the buyer has enough cash to compensate for the lower value.
- Job growth eases or turns into job losses. Local companies are closing; a particular sector goes bust (telecom, manufacturing, etc.); and there are no longer enough people in town to support the local housing inventory.
- The above situation creates a higher standing inventory, thus more houses appear on the market as people move out of town to find jobs elsewhere. Builders, who may have been building homes in the tail end of a sellers’ market, may find that they are now stuck with speculation homes they can't sell.
- Foreclosures increase as the local job market softens. This creates a new venue of market with investors moving in to find good deals.
- Home prices begin to depreciate and some homeowners will find themselves "upside down" in their property -- owing more on the house than what it's worth.
- Some sellers may have to come to the table with money to sell the house instead of reaping a large amount of equity. Meanwhile, other sellers will option for a short sale where they take action to return the property back to the lender instead of filing foreclosure.
- A first-time buyer market emerges as the once high prices drop to a level where some can afford to purchase now. This will bring about the use of low- to no-down payment mortgages in a market where they can negotiate the use of such mortgages.
- Seller subsidies increase. Price drops, closing costs assistance, and other seller subsidies become the norm.
If you noticed, interest rates and the prices of houses did not determine a sellers' or buyers' market. Some of the hottest markets in the past existed in high priced and high interest rate environments.