A somewhat recent large assessment, coupled with pending litigation has caused a depressed market in the Shipwatch Villa community of Wild Dunes. Condo sells since the assessment was announced are proof as the difference in list price to sell price is astounding. Going back to July 1st, 2012, statistics show owners getting only 76.54% of what they were asking (does not include price reductions). This is significantly lower than when you combine all condo sells in Wild Dunes since that time (87.82%).
Below I have listed the last five to sell with the asking price and sell price:
122-D Shipwatch $525,000 > $440,000
420-C Shipwatch $725,000 > $475,000
318-C Shipwatch $699,000 > $525,000
413-B Shipwatch $740,000 > $535,000
405-A Shipwatch $675,000 > $600,000
These numbers show that buyers are taking advantage of the opportunity presented and doing well with it. The owners knowing of the assessment just want out and are ready to negotiate big time because of it (if they can). Now, there is a catch. In most cases, the buyers are agreeing to take on the current assessment, therefore taking on an additional $40K +/- to what they are getting the property for. On top of that, usually, with condo litigation, lenders are wary and will not loan. Therefore, more times than not, 100% cash becomes necessary to purchase. Still, the deals are there and for the savy investor, with interest in Shipwatch or owning a condo in Wild Dunes, it could be time to make the jump. Additionally, with the assessment comes repairs, and with repairs comes improvement only helping property values.
dunes properties agent Donnie Whitaker updates his blog every month with a list of everything that is currently for sale in Shipwatch Villas. Check out the full Shipwatch Post for more information.
A few weeks ago I was talking with a Financial Advisor. The conversation moved around to a discussion of timing the market. If you have ever talked with a Financial Advisor, you can probably guess what I was told about timing the stock market…It cannot be done. There is plenty of data that supports that position. I started think about the real estate market and whether or not anyone can time the perfect time to buy or sell.
I’ve read a fair number of real estate books and listened to my share of experts on the subject and the answer I come away with is NO, you cannot time the real estate market to produce the best result for either a buyer or a seller. There are plenty of data that support my conclusion. But we don’t have to pour through years of facts to realize that markets are volitile and not easy to predict, even for the so called experts. Like it or not real estate is a market like stocks, bonds or futures.
Sellers must recognize the ebb and flow of the market determines the value of their home. Location and condition play a slight role in the overall, but what a seller paid for the house when they purchased it does not. As much as you might be attached to your home now, it is only a house on the market to the buyer.
Speaking of buyers, so many are trying to time the market to get the best price. But is that is not all that goes into a house search. Once a buyer is settled on the size house they need, location and condition are important. Do you consider the importance of the mortgage interest rates if you are borrowing money to buy? You should. But not necessarily for the reason you think. How much influence does your interest rate have on your buying power? If listing prices go down, but interest rates go up, where does that leave you?
Here is a chart that might help you see how interest rates and selling prices can influence your buying decision.
Put 20% down on a 30-year Fixed Rate
|SCENARIO 1||SCENARIO 2Home Prices decrease by 5.0% and Interest Rates increase by 0.5%||SCENARIO 3Home Prices decrease by 10.0% and Interest Rates increase by 1.0%|
The purchase price dropped and the interest rates went up and what was the net result to your monthly payment? The selling price dropped by 10% and the interest rate increased 1% resulting in a monthly payment of principle and interest to go up by aver $20! Did it make sense for you to wait?
Yesterday I posted three months of real estate sales results from the 29466 Zip Code. That area is generally the northern part of Mt. Pleasant. Today I gathered a similar set of results for the 29464 Zip Code. The results are for single family homes with at least 4 bedrooms and 2.5 baths in at least 2,500sf. Here are the numbers:
|For Sale Homes||226||$2,495,000||$250,000||$743,927||$609,500|
As you can see during the three-month period ending 9/27/2010, that part of Mt. Pleasant saw 77 home sales and there are 226 homes that meet the criteria on the market. The selling price on the 77 houses sold averaged 93% of the listed price at the time of sale. Of course, these listings have been on the market for a while and have most likely had price reductions.
We understand the market and are here to help you with your real estate questions.
As reported by Charleston Trident Association of Realtors
Charleston County continues to lead the regional market recovery with 60% more closed sales and a 5% increase in median price when compared to last year. In February, 288 homes sold at a median price of $235,950 in the county compared to February 2009 preliminary figures which showed 180 homes sold at a median price of $225,000.
In Charleston County, the area south of Highway 41 had the most activity in February, with the Rivertowne neighborhood showing the highest sales for that area.
Search for available Charleston county properties on our website.