Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline. This is not uncommon in a balanced market, but it’s been so long since we’ve seen one that we’re watching it with perhaps too much trepidation. Metrics to watch include inventory and prices, but also days on market, months’ supply and percent of list price received at sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand.
New Listings in the Charleston area increased 5.7 percent to 1,672. Pending Sales were up 19.9 percent to 1,359. Inventory levels fell 3.8 percent to 6,158 units.
Prices were a tad soft. The Median Sales Price decreased 2.1 percent to $215,000. Days on Market was down 9.5 percent to 65 days. Sellers were encouraged as Months Supply of Inventory was down 12.2 percent to 5.4 months.
Sustained job growth, lower mortgage rates and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it’s encouraging to see second quarter GDP growth revised upwards to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues.
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