Charleston, SC Real Estate Market Inventory

In the last few months most the nation is seeing a seller’s market, and all agents know the rules of supply and demand which can only be one thing. Lack of supply, but where has it gone? It’s not like the real estate market is booming, or the economy for that matter to justify this seller’s market. I am a real estate agent in Charleston, SC and I can attest that there is far fewer homes on the market here locally then has been the case of the last few years and buyers are finding it much harder to find the home they want.

So let’s break down the most probable reasons why this is:

1.) The government backed HAMP (Home Affordable Mortgage) Program is the likely culprit for most of the shortage. This program allows many borrowers that were struggling to modify their loans more easily thus resulting in far less foreclosures and REO properties available for purchase.

2.) Upside down homes – Homes that are underwater where the borrower owes more than it’s worth. These home owners can afford their payments, but due to the fact they owe more than the market allows them to sell their home for results in them just staying in the property.

3.) Slow foreclosure processing time – The homes that are being foreclosed on have to go through a litany of  rules, steps and procedures before the bank can legally take possession and this process takes a long time for municipalities, and the dept. handling the paperwork.

4.) Investors – A lot of the homes that were and are coming on the market are being snapped up by cash investors that are planning on sitting on the homes as leases until the market rebounds which will likely be many years to come.

So what’s this mean for buyers and lookers? The obvious answer is rising prices which has been the case for months now. Secondly, according to National Assoc. Realtors 60% of all sellers last year offered concessions to attract buyers.  With it being and strengthening into a full on seller’s market you will likely see this incentives quickly disappear.

New Home builders  are seeing a much higher demand for new construction which makes them happy. So much so that many of them are getting back into the spec market instead of contract only builds.

Here locally the Charleston SC real estate for sale has certainly shrank and buyers that have been looking are feeling the pinch of less inventory and increasing prices. So; to the sellers that have been sitting on the side lines, I suggest you revisit the idea, and to buyers..If you continue to wait, it will likely get worse so make a decision already.

On the bright side these conditions make for a more balanced market then we have seen in the last few years. Barring any further restrictions and increasing in mortgage rates things are moving in the right direction.