Remember those boring economics classes in college. Well the big take away from all those hours was supply and demand dictates the price of available products in the market place. This is very true of real estate. A year ago active listings on Daniel Island of homes, townhomes and condos totalled 282 listings. Today active listings total 210 - down 25%. Active listings above $1,000,000 was 66 last year at this time and is now 48 down 27%.
Buyer activity has increased dramatically. Web site visits are through the roof and showings at all price points are brisk. Last year at this time there were four of Daniel Island's deep water "crown jewels" available on Ralston Creek Street. This weekend we were pleased to put the last one under contract. We are already hearing owners of these home thinking about listing their home at increased prices to take advantage of the demand for deep water "crowned jewels."
Obviously we can't all afford $3,000,000+ homes, but look for the same dynamic at most price points soon. The lack of inventory is amplified by the fact that there has been very little new construction of speculative homes for several years with the exception of production builders in Smythe Park. There will soon be a limited number of higher end spec homes coming out of the ground, but it takes a year to complete new homes.
The message is for those who are seriously interested in buying a home soon, it is best take action now. The market has almost bottomed out on Daniel Island and many other areas of Charleston. We expect available listings to continue to drop and simple math would indicate prices will stabilize and start to climb. The good news for buyers is that there are still deals to be had today. Sellers who have hung on through the difficult market are ready to move on with their life.
Hire a realtor who has intimate knowledge of the community that interests you. Our team knows Daniel Island better than anyone. We have "insider information" on all the remaining great deals are on Daniel Island. We have a solid handle on the foreclosures and bank owned properties that are still great targets for deals. The market dynamics are changing quickly, but you can still have a big smile at the closing table if you work smart to find a great home and great deal for your family.