2018 Real Estate Mkt: The Year of the Seller

Interesting article by Jotham Sederstrom, who has written about politics, finance, real estate, criminal justice and advertising for publications including The New York Times, Adweek, Spin, The New York Observer and The New York Daily News. A native Nebraskan, he now lives with his wife and son in Brooklyn.  Below is his forecast for the 2018 Real Estate Market.
Will 2018 be a buyer’s market or a seller’s market?

Real estate experts and economists agree sellers will continue to hold the cards

 

BYJOTHAM SEDERSTROM Staff Writer

DEC 26 

With inventory at historically low levels and demand for housing skyrocketing in most markets, economic analysts and real estate experts believe 2018 will be the Year of the Seller.

 With few exceptions, analysts contacted by Inman News forecasted yet another year in which a scarcity of homes in the real estate market will allow private and institutional sellers to keep prices high, especially as a growing segment of first-time millennial buyers take the homeownership plunge.

 “Clearly, 2018 appears to be another seller’s market,” said Mark Fleming, chief economist at First American Financial Corporation. “The shortage of supply relative to increasing millennial demand will not change next year. In fact, it may be exacerbated as more millennials decide to become homeowners and more sellers become prisoners in their own homes, as mortgage rates rise and fear of not being able to find something to buy increases.”

Low inventory, perhaps more than any other economic driver, will be a major hurdle for buyers in the coming year. Indeed, even as overall housing starts spiked to 1.297 million units in November, most experts believe bouncing back to a 50-year average of 1.5 million new units will be no easy task — and until then, the listings shortage will dramatically affect pricing, for better or for worse.

“Builders have been ramping up somewhat over the past year, and that should continue going forward,” said Svenja Gudell, chief economist at Zillow. “But in order to satisfy demand from entry-level buyers in particular, builders will need to find more affordable sites farther from job centers — and it’s unclear if buyers will be willing to sacrifice their commutes for affordable homes as they did in years past. And in general, it will take many years of above-average building activity to help erase the housing deficit we’ve created after years of under-building.”

According to Redfin’s 2018 housing market forecast, a whopping 25 percent of homes sold within two weeks or less during the peak of the buying season in 2017, and nearly one in five homes, or 19 percent, left the market in less than a week.

But mortgage rates, which are expected to rise, on average, to just 4.5 percent by the end of 2018 — and changes to the tax code that may deincentivize homeownership, could tip the balance of power to buyers and give them more room to negotiate, especially in luxury markets.

“I think you’re going to see sellers have less pricing power than they did this year, particularly in states like New York and California,” said Nela Richardson, chief economist at Redfin. “Buyers are going to be ready to play hardball because they’re not getting as much from buying the house as they did this year. And maybe less pricing power in other places, too, because consumers can only pay so much and prices have gone up so strongly.”

Lawrence Yun, chief economist at the National Association of Realtors, echoed a similar sentiment: “The housing shortage will still persist in many markets due to the legacy of slow rate of homebuilding over the past decade,” Yun said. “But due to the tax reform providing less financial benefit to be a homeowner, the overall price increase will be much softer in 2018, by 2-4 percent.”

Added Steve Cook, a real estate communications consultant at commsconsulting.com:

“The inventory drought will continue to be enough of a factor to keep supplies below normal. Most markets will continue to be sellers’ markets, especially for entry-level homes, hotter markets and markets where prices are high and new construction is costly, like the Pacific Coast. Luxury and premium markets will be more evenly split between buyers and sellers.”

Email Jotham Sederstrom

 

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New Listing in the Old Village: 517 Royall Ave

Spacious Old Village 4 bedroom, 3.5 bath home with over 3500 square feet on a beautiful private lot with in-ground pool! Offered at $1,349,00.  Click here to see more, SearchOldVillage.com

Features include: *Large living room with many windows and fireplace *Spacious kitchen/ dining area, completely renovated with granite countertops, sea-glass tile back splash, stainless appliances, gas range and butler’s pantry *9+ foot ceilings, crown molding and beautiful hardwood floors throughout *Double doors lead to the private, fully-fenced back yard with pool *First floor bedroom with private bath *Second floor features include a large family room with hardwood floors and 9+ foot ceilings *Master suite with walk-in closets, huge bathroom with double sinks, soaking tub and stand-up shower *Two additional bedrooms with shared bath *Third floor offers a huge bonus room – perfect for home office, gym and/ or media room. *Detached garage.

 

For more information and/or to schedule a showing, contact Jackie Kelly at 843.991.9111 or jackie@thecassinagroup.com

JUST SOLD IN THE OLD VILLAGE/ OLD MT. PLEASANT

I have had the best time helping folks find their new homes in our neighborhood!  Whether you are a buyer or a seller, I am happy to help you find the perfect match.
1479 Seminole Street
4 beds, 2.5 baths  
$706,000
1470 Seminole Street
4 beds, 4 baths
$775,000
211 Haddrell Street
3 beds, 1 bath
$645,000
212 Freeman Street
3 beds, 2.5 baths
$784,000
845 Marsh Grove Avenue
4 beds, 2.5 baths
$1,071,250

 

Please let me know if I can help with your real estate needs!  To see all homes for sale in the neighborhood, visit www.SearchOldVillage.com and if you would like to receive a listing homes SOLD in the area, email me at Jackie@TheCassinaGrouop.com

~Jackie

 

 

16 Years of Solid Growth in The Old Village/ Old Mt. Pleasant

ov stats

AVERAGE SALES PRICE IN THE OLD VILLAGE/ OLD MT PLEASANT, FROM 2001-2016, PER THE CHARLESTON MULTIPLE LISTING SERVICE

The US housing market seems unstoppable, and our neighborhood is no exception.  Prices continue to rise, demand is strong, inventory is tight, interest rates are low and new construction is in full force.

Sales prices in the Old Village/ Old Mt. Pleasant are at an all time high, with the average sales price reaching $685,000 in 2015 and a staggering $743,000 in 2016.  That is a considerable jump from $455,000 in 2014.  Not to mention that price has more than doubled from the 2001 average of $370,000.  These stats show a solid investment market based on a steady increase over a long period of time.

So what does it all mean?

For sellers, it all sounds good, right?  But pricing your home accurately is still the key. The average “Days On Market” for homes sold in the OV/ Old Mt. P was 64 in 2016 and 65 in 2015.  When a home is priced under market value, multiple offers typically happen and can drive the sales price up.  And if priced over market value, the home will sit on the market with little to no activity after about 120 days.

For Buyers?  According to Chief Economist Jonathan Smoke, of Realtor.com, “Buyers who are able to land the home of their dreams can reassure themselves that their investment is likely to be a solid one—especially in our hottest markets, where homes are selling fastest and there’s the most demand.”

I always say it’s best to watch the market on a local level, and watch the prices over a long period of time.  And when you are ready to buy or sell, it’s imperative to team up with a savvy REALTOR® who understands your market.  If I can help you, please let me know.  To see all homes for sale, visit http://www.SearchOldVillage.

Meet Kim Richardson, Owner of the Pitt St Pharmacy

What a great chat with Kim Richardson! He is charming, sweet and genuine! Not only does he love his community and his work, but let’s just face it… Kim is instrumental to the fabric of the Old Village. We are very fortunate to have him!

Pitt St Logo

Q:  How and when did you end up owning the Pitt St. Pharmacy?       

A: I’ve been here for 22 years and have the great privilege of owning a true “soda fountain pharmacy” which is so rare today!   Growing up, my generation would go sit for an ice cream while our parents picked up their medicine.  It was a tradition I loved. It was a different perspective than how the world works today, where things are fast paced, the “drive-through mentality.” When I went to pharmacy school, I knew this traditional format was what I wanted, but there were hardly any left.  And rightly so! The business model has only a slim chance for success in today’s world since the “soda fountain” is not a profit center. This has forced the “mom and pops” to sell out to the bigger chains.  For me, the only way to achieve my dream was for the good Lord to put me at the right spot at the right time and that is exactly what happened!  In 1937, Dr. Wattie Zeigler started this pharmacy and here we are celebrating our 80th year.  Dr. Zeigler made his living literally with his mortar and pestle!  This process is called “compounding” and unlike most pharmacies, we still use this method today.  To “compound medicine” means to make unique medicines that are specific for each patient’s individual needs. Individualized medications are not available commercially.  This process sets us apart and is the bread and butter of our business.  We are one of very few pharmacies that work this way in the Charleston area.

pitt street 1

Q:  In your opinion, what makes this special?                                                                             A: This is “Mayberry!”  Families shop here and we have created a real sense of community!  Kids hang out after school and order a hand-made grilled cheese sandwich or Coke-Float and are able to charge it to their “account.”  Compounding medicine is what sustains our business, but our soda fountain is what makes us special.  It gives us notoriety, and we have been featured in newspapers, TV shows and movies!

                                                                           pitt street 2

Q:  I know you take pride in community service. Talk to me about your recent mission trips.      

A: I feel blessed to be where I am, and with that comes my responsibility to “give back.”  I grew up in the days of “service to my community” and I continue that today.  We are proud to participate in Medical Mission Trips through the Mt. Pleasant Presbyterian Church.  We take huge totes of medications to rural areas of Honduras where they literally have no hospitals, doctor care or even medicine.  We go with a team of doctors, nurses, dentists and more to a little community of 200 people and help in any way we can.  I feel blessed to have this opportunity!  Locally we support Camp Happy Days by providing all the medical supplies they need for their camp and we are a sponsor for the Cystic Fibrosis Foundation as well as many other local organizations.

Pitt Street 3

Visit Pitt St. Pharmacy at 111 Pitt Street or check them out at PittStreetPharmacy.com

Under Contract in 1 Day: 1479 Seminole Street, Old Mt. Pleasant

 

 

My listing at 1479 Seminole was priced to sell and went under contract in 1 day!

The real estate market is hot right now! Homes that are priced right are flying off the shelf. Contact me if you are looking for a home in the neighborhood or visit, www.SearchOldVillage.com.  It is imperative during this fast-paced market that you team up with a savvy REALTOR® who knows the market, can help find homes before they list, and can help navigate multiple offers for homes that come on the market for a reasonable price.  I am happy to help!

Jackie Kelly, Realtor®, jackie@thecassinagroup.com

 

Experience Sells!

2016 was a great year for Charleston real estate and for me professionally.  And I am thankful to my clients and friends for helping me achieve my goals!
  • I am thrilled to have SOLD MORE HOMES than any other real estate agent in the Old Village/ Old Mt. Pleasant neighborhood in 2016!*
  • I was awarded the 2016 Moultrie News BEST OF THE BEST REALTOR®!  
  • I achieved the Executive Level of The REALTORS® of Distinction Award, which is their highest tier and recognizes the top producing Charleston REALTORS®.

With 6,000+ REALTORS® in the Lowcountry, it is a given that you have a friend or family member who is licensed to sell.  But you need to ask yourself… Who has the experience and knowledge to get the deal done?  And who can provide the proper guidance for a  smooth transaction while maximizing my financial gain?

The decision of who represents you in the sale and or purchase of your life’s biggest asset needs to be taken seriously.  And as you know, I live in this neighborhood, specialize my business here, and I have been a top producer in this area for many years.  
 
I love what I do, and work hard everyday to provide superior service, expertise and advisement to my clients.  And I am thankful to have this opportunity!  If I can help, I am happy to do so.  To learn more, check out my website at www.SearchOldVillage.com or email me at Jackie@TheCassinaGroup.com.
 
*Per Charleston Trident Association of Realtors MLS statistics pulled on 1/13 /17

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