Any sign of a real estate slowdown?

[lsgchas]

I was talking with a friend the other day who knows a little bit about local real estate. He claims he's seen signs of a slowdown in Charleston real estate: houses staying on the market longer, sellers lowering asking prices, etc. The national media has also been pointing to a slowdown in some of the hottest markets around the country. I'm curious if anyone has any anecdotal evidence of house prices growing more slowly in Charleston lately, or on the other hand, evidence that the housing market's still as strong as ever.

[CorgiMatt]

I was talking with a friend the other day who knows a little bit about local real estate. He claims he's seen signs of a slowdown in Charleston real estate: houses staying on the market longer, sellers lowering asking prices, etc. The national media has also been pointing to a slowdown in some of the hottest markets around the country. I'm curious if anyone has any anecdotal evidence of house prices growing more slowly in Charleston lately, or on the other hand, evidence that the housing market's still as strong as ever.

South Carolina's economic trends usually mirror the nation's, but on a delayed basis. I think it's coming.

[Jerseyman4]

On the flip side, many people want to live in the Charleston metro area so time will only tell what will happen.

[MikesLogic]

I'm not sure about a slowdown or not but I read an article the other day talking about how the Charleston market was about 7% undervalued while most areas are overvalued at this time.

[Charleston native]

A slow down during this time of year is usually normal. I recently purchased a home, and I was told that during the holidays, the real estate market sales always go down. Reasons for this vary from financial crunches from shopping for Christmas gifts to inconvenience for moving due to jobs and children in school. The realtors told me that the hottest time to buy a house is during the summer when school is out, convenience for moving better, and there is little "gift" buying.

I wouldn't worry until it gets to next summer and the same trends are occurring.

[Spartan]

You also have cycles in the market. Just becuase its slow now doesnt mean it wont pick up after the holidays.

[lsgchas]

You also have cycles in the market. Just becuase its slow now doesnt mean it wont pick up after the holidays.

The numbers showing a national slowdown are seasonally adjusted. If there is seasonally adjusted data specifically for the Charleston market, I haven't seen it. Of course, that doesn't mean it isn't out there somewhere. The next time I see my friend, I'll ask him if he meant housing is just in a normal winter slump. My strong feeling however is that he meant the market was down more than normal for this time of year.

[vicupstate]

This is scary...

Nell Postell, the agent representing the Townhomes at Windermere Boulevard development, says all 16 units in the four quadplexes -- priced between $330,000-$340,000 per unit -- were put on the market at noon one day, "and by 8:30 a.m. the next day, they were all sold out."

Some of the units, she says, were "flipped" three times before construction even began on them. Translation: the ownership rights to some of the units were sold for increasing amounts of money before a brick was laid.

This can only continue for so long. The question is with there be a soft leveling off or a hard crash?

[Charleston native]

This is scary...

This can only continue for so long. The question is with there be a soft leveling off or a hard crash?

Ahhh, I see you read the article I posted about the West Ashley condos. Well, it's hard to say what is scary about it...the fact that condos are selling like hotcakes could be just one aspect of a tremendous boom that is starting to occur...or the fact that since they're selling so fast, the price will be driven up to a point where no one can buy them and live in them?

I prefer to be optimistic about the situation, so I think this is an example of a real estate slowdown not really happening in this city.

[vicupstate]

Ahhh, I see you read the article I posted about the West Ashley condos. Well, it's hard to say what is scary about it...the fact that condos are selling like hotcakes could be just one aspect of a tremendous boom that is starting to occur...or the fact that since they're selling so fast, the price will be driven up to a point where no one can buy them and live in them?

I prefer to be optimistic about the situation, so I think this is an example of a real estate slowdown not really happening in this city.

For a property to flip three times before it is even built shows there is a lot of investment-driven speculative buying. The increase in price is driven by speculation until someone actually pays that inflated price to live in it. If the economy downturns, interest rates rise, or consumers get spooked that appreciation won't continue unabated, a falloff in demand would result and bring down prices. The last investor will end up holding the bag. The drop in demand results in a glut and pulls back on the supply eventually.

Sounds errily familiar to a stock market crash, like the one in 2000. I still haven't recovered from that one. Everyone thought Technology stocks would continue rising, until they didn't.

[Charleston native]

For a property to flip three times before it is even built shows there is a lot of investment-driven speculative buying. The increase in price is driven by speculation until someone actually pays that inflated price to live in it. If the economy downturns, interest rates rise, or consumers get spooked that appreciation won't continue unabated, a falloff in demand would result and bring down prices. The last investor will end up holding the bag. The drop in demand results in a glut and pulls back on the supply eventually.

Sounds errily familiar to a stock market crash, like the one in 2000. I still haven't recovered from that one. Everyone thought Technology stocks would continue rising, until they didn't.

Many economists have said that the Chas real estate market is actually more stable than other markets because of its economic flexibility. Since Chas is becoming less reliant on sole tourism, real estate is becoming a hotter commodity there for its amenities, quality of life, and job opportunities.

If the economy downturns, it will affect every community, and Chas is no exception. However, economists have said that since the city has a port and a large military presence, any downturn is financially cushioned because the demand will still be fairly high.

[lsgchas]

I've pretty much given up on trying to figure out which direction real estate is heading, but for what it's worth, there's an article in today's P&C that says local real estate is slowing down.

Reporter Adam Stone writes, "The Charleston Trident Association of Realtors reports that the average area home price has slipped from about $305,000 in October to about $296,000 in February. The number of homes sold also decreased, from 1,365 in October to 998 in February."

The article also compares Charleston's hot market to Ft. Myers, FL. Apparently, many people are chosing to live here rather than Florida as that state becomes over-developed and over-priced. The question is raised whether or not we're following in Florida's footsteps. Personally, I doubt it. Higher gas prices, and over-built markets will shift investment away from real estate in the next few decades. The article is [url="http://www.charleston.net/stories/?newsID=81872

[Infinite1]

I've pretty much given up on trying to figure out which direction real estate is heading, but for what it's worth, there's an article in today's P&C that says local real estate is slowing down.

Reporter Adam Stone writes, "The Charleston Trident Association of Realtors reports that the average area home price has slipped from about $305,000 in October to about $296,000 in February. The number of homes sold also decreased, from 1,365 in October to 998 in February."

The article also compares Charleston's hot market to Ft. Myers, FL. Apparently, many people are chosing to live here rather than Florida as that state becomes over-developed and over-priced. The question is raised whether or not we're following in Florida's footsteps. Personally, I doubt it. Higher gas prices, and over-built markets will shift investment away from real estate in the next few decades. The article is [url="http://www.charleston.net/stories/?newsID=81872