With the recent change in the Mount Pleasant SC real estate market, Labor Day takes on a completely new meaning. A few years ago the real estate market was tough. The sky was falling and nobody knew really what the future held. It's always easy to look back in time and really see what has happened, and with that being said I can safely say that the bottom of the real estate market in Charleston SC happened in the fourth quarter of 2011.
One of the biggest changes that I've seen since then has been the construction of new homes. It's wonderful to see contractors working on their projects, rather than the tumbleweeds rolling by like they were in 2009. It seems like every day in Mount Pleasant is Labor Day. This is fantastic news for the people of Charleston South Carolina.
Of course there are factors in the future that may change things. Those things could be for the better, or for the worse. I have heard many buyers and sellers discussing the raising interest rates recently. I have to quickly remind them that even during the boom time of 2005, rates were still higher than they are today.
I will give you an example of just how crazy things were with a 6.5% rate:
I was selling a home in Mount Pleasant SC, and the real estate market was on fire. I was representing a buyer and they were buying a new home. It was listed for 600,000. During that time, there were so many buyers clamoring for properties, we knew we had to pay full price to avoid someone else "winning it". That was the standard back then.
Fast-forward 10 days… while the buyers were getting the home inspected, and preparing for closing, a buyer that had missed the home came along and said that they were really upset that they couldn't buy it. They offered $750,000 cash. Not surprisingly, this was welcome news to the buyers that I was working with in the Mount Pleasant SC real estate market. Long story short, we closed in the morning on this home for 600,000, and then that afternoon for 750,000. Now I was working that day, but it wasn't much of a Labor Day for me. This happened all the time. Sales just came easy for everyone.
Will this happen again? Will we see the meteoric rises that we did between 2002 and 2005?
Experience has taught me to never say never. There was a time when I would say that I could never see the real estate market going downhill in Charleston. Well, this obviously was not true, because as we all know the real estate market across the country took a dive in the fourth quarter of 2006 (some might say the first quarter of 2007.)
And while we are in a much more challenged market than we were back then, we are really in a better market. And how does this relate to labor day? Because mortgage lending is much more difficult these days. A buyer no longer just needs to fog a mirror in order to purchase property. They actually have to qualify for a loan, jump through mortgage lenders hoops to obtain that loan, and they also have to have money down in order to make it happen. And while this may seem painful for some, it's actually a much better atmosphere moving forward.
So if you are looking for Mt. Pleasant SC real estate today, and you're missing out on properties because there are multiple offer situations, don't take this as a return to yesteryear. Simply take it as a note that the consumer feels like the market has turned around, and waiting for the bottom is something that buyers have seen already come and go. If interest rates go up a few percentage points over the next few years, so be it. We are it 4 now, 7 still won't be so bad in the future. The timing simply has to be right for you and your family.
So how does all this tie into Labor Day again? Well, that's a great question.
It can mean many things:
- When you see construction workers laboring in the heat, building homes it's a good sign.
- When it's difficult to obtain a mortgage, and it feels like you're laboring away painlessly trying to fulfill every need of the mortgage lender, remember all this work is healthy for the market.
- When a home doesn't sell in the first 30 days, and I've heard that having a home on the market from sellers can almost be like being in labor, remember it's better than having to fight to pay more than full price when competing with other buyers.
While the Mount Pleasant SC real estate market is no longer booming and untouchable, it's still doing quite well. And while some homes are more difficult to sell than others, they are still selling. Thanks for reading!
Nat Wallen is a Realtor in Charleston SC specializing in residential property sales. He has been licensed since 1995 and is the top listing agent with Carolina One Real Estate. Carolina One Real Estate is the largest company in the Charleston SC area of 700 plus agents. NOTE: Nat Wallen never solicits consumers interacting with his blog unless requested. YOUR comments are encouraged and welcomed. Thanks!