Traditionally, the return of April signals the beginning of the spring selling season in Charleston. The sellers’ market is returning to Folly Beach and the housing supply is low.
There are only 26 attached single family homes on the market at Folly Beach currently along with just 62 detached single family homes. Tight inventory tends to raise home prices and can often result in multiple offers for real estate. Tight inventory could also discourage some potential sellers. People are not generally enthusiastic about selling to rent. If sellers do not think they can find a home they may decide not to sell. New construction would help ease the market pressure.
Mortgage bankers tell us there are fewer cash buyers in the market today. Realty Trac reported that cash offers made up about 31% of sales in 2014, the lowest level in the past 4 years.
We have enjoyed the lowest interest rates in our generation’s era over the past 6 -7 years. ….which is generally around 4%.. That compares to around 7% with 6% rates considered desireably low. Mortgage bankers also tell us that they believe higher interest rates are on the horizon. We see more buying activity when consumers sense higher interest rates are expected.
We are seeing higher rental rates in the Charleston area. This could result in more home ownership in the long term. In general ,we expect mortgage interest rates will increase, resulting in higher real estate prices in the next 1 to 2 years.
If you have family, friends or if you know of someone considering buying or selling real estate, your referral would be the most appreciated compliment I could receive.
David B. Landry, Realtor
Dunes Properties of Charleston
Nobody knows Folly Beach Better
This May Be A Good Time to Put Your Property On The Market
March 23, 2016
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