Summary
Mt Pleasant continues to be a "Buyer's Market" and in my opinion will remain so for at least the next 12-18 months, barring any unusual market shifts. Homes priced strategically and marketed effectively are still selling, but buyers have many options to choose from and improved opportunity to negotiate terms.
Inventory-Supply
Although sales activity has been steady,
inventory levels have kept rising despite a small decrease during the first quarter of 2007. There are currently 1,290 single family homes for sale in Mt. Pleasant. Chart 1 shows how inventory has behaved recently (includes townhomes & condos).
New Construction
The Town of Mt Pleasant reports having approved only 195 (out of the maximum annual allocation of 620 permits) this year. New construction has slowed down dramatically and most probably will continue at a slow pace until some current inventory is absorbed.
Average Prices
The following chart shows that the average area price has remained more or less steady for the last twelve months, a resilience that is surprising, given the increase in current inventory. There little consistency across the board. Average Sold Price (Jan-Jun) for Area 42 (South of Hwy 41) has remained unchanged at $514K, while for Area 41 it has increased from $463K to $479K. However, at neighborhood level, some individual neighborhoods have seen price reductions in the 10%-15% range, while others have still experienced slight appreciation. As a fallout of rising interest rates, Buyers have narrowed their price ranges substantially, Today, more than ever, it is essential to price homes in the right price bracket to get market attention.
Absorption - Demand
Sales continue to be strong; if not at 2005 levels (2005 was a record year) perhaps at 2004 levels (2004 was our third best year). Seasonality appears "normal". Contrary to popular belief, it appears that the rise in interest rates and adverse market sentiment has not affected the demand for single family homes in Mt. Pleasant a whole lot! This is good news for Sellers, since in the medium term (6-12 months) inventory levels may start decreasing and appreciation will return to the market. The perception of having a "bad market" seems to stem from the increase in inventory, rather than by slower sales.
New Projects
Pinckney Place
This recently launched development will include 60 Charleston-style single family 3 and 4 br. homes on Whipple Road (next to Snee Farm). Phase I has just been released, at prices in the high $500's. This is a great opportunity to buy a new home in Mt Pleasant close to downtown and I-526!
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