Local housing market enjoying 4% sales increase

While housing sales for the nation in general dipped 11.7% following the Sept. 11 terrorist attacks, Charleston housing sales increased, bolstering a 2001 sales performance that is 4% stronger than 2000 sales, according to Mark Kearns, Charleston Trident Association of Realtors’ 2001 president.

As of October, 6,577 homes have been sold during 2001 compared with 6,332 homes sold during the same period last year.

September 2001 sales hit the 631 mark, compared with 572 in September 2000. October sales reached 615 compared with 594 in October 2000. August 2001 sales reached 810, compared with 700 for August 2000. In addition, the median price of a Charleston-area home is $150,200 compared with last year’s price of $140,900.

“It sort of defies logic,” says Kearns, who recently turned over CTAR’s presidential gavel to Robert Clement. “You would think because of the Sept. 11 terrorist attacks, business would have slumped. But just the opposite happened. Business is better than last year.

“What benefits Charleston’s housing market is the tri-county’s diverse economy,” Kearns adds. “We’re not dependent on one huge company, and so we wouldn’t feel the impact a city like Seattle would if, say, Boeing were to move out.”

Kearns, who with other CTAR representatives attended the National Association of Realtors’ Chicago convention earlier this month, attributes the sales increases to lower interest rates.

“Last year, residential interest rates on a 30-year mortgage were around 8%,” says Kearns. “Now the interest rates are around 6%.”

Though Charleston’s housing market isn’t booming like it was three years ago, when houses stayed on the market an average of only a month before they were purchased, Kearns claims the market is still holding its own.

“Things have been pretty steady throughout the marketplace,” he says. We have a couple of Mount Pleasant waterfront properties about to sell for more than $2 million, and earlier this year a Mount Pleasant property sold for $2.6 million. We’ve got a handful of residential deep-water homes sales in the $1.4 million to $1.5 million range.”

Although the national housing market faltered after the Sept. 11 attacks—with sales of new homes dropping 1.4% and the median price of existing homes decreasing 4% to $148,000, the nation’s housing sales for the year are still expected to be the second-highest on record, according to David Leah, the NAR’s chief economist.

“For Charleston, 2001 could be one of the best years ever in terms of volume sales,” Kearns says. “Sales below the $200,000 home price are still doing well. None of the areas in the market are showing a decrease in property values. And there continues to be an ample supply of properties to choose from.”

Kearns says tri-county houses are staying on the market for an average of 90 to 120 days. “When properties take three to six months to sell, that’s what we call a balanced market.”

Kearns expects a strong 2001 finish for local housing market sales.

“The economy and the terrorist attacks haven’t caused Charleston to panic,” he says. “Housing prices are increasing but beginning to level off. I believe the November 2001 numbers will be stronger then last November’s.”