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Charleston’s Home Prices Slip in 1st Quarter, Show Strength in April & May
Jun 03, 2007 • By Places Real Estate • 0 Comments
As reported in the Wall Street Journal this week, U.S. home prices dropped 1.4% in the 1st quarter compared with a year earlier, the first year-over-year decline in national home prices since 1991. Charleston’s market saw similar drops over the same period – bouncing down 4% from an average sales price of $380,000 to $365,000. Last year, home prices were rising at an 11.5% pace nationally.
Looking at the numbers in Charleston for the second quarter (April-May) shows a significant bump in the average sales price up to $386,000, a 5.7% increase, with the number of transactions holding pretty steady for the spring months with just a nominal increase at the stage in the game.
Most analysts forecast a further decrease in the national pricing by about 5% throughout 2007, I suspect the Charleston markets will see slightly less price declines, except in those neighborhoods and areas where record-level inventories are helping to push down the numbers and creating favorable buying opportunities in the short term. Look at Isle of Palms and Sullivan’s vacation homes and residential neighborhoods (Hibben, I’On, & Daniel Island) where builders and part-time investors were slow to curtail activity and have fostered the high level of new luxury homes in the Charleston marketplace.
Categories also posted in: Charleston, Daniel Island, Homes for Sale, Housing Market, I'On, Isle Of Palms, Mount Pleasant, Mt. Pleasant, Neighborhoods, Real Estate, Residential, South Carolina, Sullivan's Island