Charleston Real Estate Trends

bargains in a highly desirable market which has been hit in recent years with declining

home prices. Due to its historic district and wide array of outdoor activities, Charleston

remains a favored destination for vacationers from around the United States. As a result,

Charleston real estate benefits from the relocation of homeowners who move here,

especially from the snow-filled states of the upper-Midwest and the Northeast.

This constant trend serves the Charleston real estate market well because it softens the

blow to the sagging housing demand that has staggered so many other regions in the

United States. For instance, sales prices for James Island and West Ashley (inside the

Mark Clark Expressway) have increased week-over-week 0.2% or $1,150. Average sales

prices for these two districts of Charleston are $343,416 and $299,746, respectively.

Further, Charleston’s real estate sales number are increasing handsomely over the same

previous three-month period of 2009 with an increase of 37.7%

With the increased sales percentage one would assume that home prices have had a

correlating increase as well, however, this is not the case. The average price per-squarefoot

came in at $141 - this represents a decrease of 7.2% for the same period a year ago.

The median home sales price in Charleston decreased $4,950 or 2.5% for the same

period.

Higher demand and decreasing prices, sounds counterintuitive doesn’t it? In any other

environment it would be but here’s the catch: there are currently 630 homes in Charleston

that are in pre-foreclosure, auction status, or simply owned outright by the bank. Many

homeowners throughout the low country are selling because they simply cannot afford

their current mortgage and/or find themselves “under water” vis-à-vis their mortgage

commitment. Adding further pressure on housing prices is the fact that banks loath

owning real estate because they are not real estate property managers – they are in the

business of lending capital. Banks, therefore, will sell this real estate they have been

forced to take back at reduced priced just to get these homes off their balance sheets.

We believe that this represents a serious opportunity for those who wish to purchase

Charleston real estate. Decreasing home prices and extremely low mortgage rates make a

great combination for the purchaser who wishes to profit over the long-term.

Brayden Capital Home Loans