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Charleston Real Estate by the Numbers // November 2014

The outlook is great for Charleston area real estate as indicated by this year's market statistics. "The region remains on track to close 2014 with sales that reflect what the trend has been all year—a growing, sustainable market," says newly installed 2015 CTAR President Matthew DeAntonio. Check our infographic below to see just how well the market performed in November 2014. Numbers are up once again this month! Last year, 918 homes sold at a median price of $203,405. This November, 962 homes sold at a median price of $222,283. Though the numbers dipped slightly for the holidays, which is always expected, these stats show solid growth in Charleston over the last year. 

Should You Buy a Home During the Holidays?

Last week, we posted a blog on selling a home during the holidays. Today, we want to focus on buyers who are starting or continuing their home searches through the season. While the Charleston real estate market certainly slows down during Christmas time, it does not stall completely. In fact, there are savvy buyers out there who realize that they might actually have an advantage when it comes to negotiating this time of year. That’s especially important right now since inventory has been down this year, making it a seller’s market.

It’s possible that a lot of sellers might not allow showings during the holidays, so if you’re looking for a great deal on a home, your options could be limited. This could work in your favor, though. Sellers who do allow showings this time of year are probably more motivated than those who do not. If a seller is under pressure, chances are they’re willing to negotiate. It’s a great time to take advantage of sellers’ urgency. As an added bonus, people seem to be more generous this time of year. You could come out on top with a deal you might not have a chance at once the new year rolls around.

The moral of the story? Don't discount Christmas as a bad time to buy. An amazing opportunity could be waiting for you.

Have you had experience with buying or selling a home during the holidays? What are some of the advantages and disadvantages you've run into? Tell us in the comments section below!

Increase Home Equity

One of the primary advantages of owning a home is the chance to build equity. Equity is the portion of house that the owner has already paid off, or the difference between the home's value and the owner's total debt to the mortgage lender. On the road to 100 percent equity, in which the homeowner owns the property outright, building equity can be a big advantage in managing personal finances and profiting from a home sale.

Reasons

Homeowners have plenty of reasons to increase home equity. More home equity means the chance to borrow more money with a second mortgage in the form of a home equity loan or a home equity line of credit. These loans provide money for funding home improvements, paying medical bills, funding a child's education or buying consumer goods like a new car, boat or RV. Home equity also allows the owner to profit more from selling the home and put that money toward a new house or retirement savings.

Down Payment

The initial down payment that a mortgage borrower makes upon buying a house is the first step toward building equity. A standard 20 percent down payment gives the borrower exactly 20 percent home equity, which is measured as 20 percent of the home's fair market value. A larger down payment means more equity, and can also reduce monthly mortgage payments.

Mortgage Payments

Each mortgage payment that a homeowner makes includes a portion of the principal of the loan and interest that accrues each month. The principal portion goes toward building home equity, and with each passing month the homeowner has slightly more equity. Making double payments can speed up the process and lead to more equity faster. Homeowners who have an interest-only mortgage lose the chance to build equity, since they temporarily only pay interest in order to keep payments at an affordable level.

Home Improvements

Anything that increases the value of a house also increases the owner's equity. This is why home improvements can be such a practical and profitable investment. Homeowners who invest in routine maintenance, along with other projects like renovations and additions, are helping to boost their equity while also making the home a more enjoyable place to live. Landscaping, new fixtures and adding energy-efficient appliances all boost home values and raise the owner's equity.

The Real Estate Market

Finally, the real estate market itself can be responsible for large changes in home equity. The supply of homes on the market and the demand from home buyers can drive home values up or push them downward. When mortgage interest rates are low, more buyers may be in the market, which can cause home values to rise and current owners to gain equity. Improvements in a neighborhood or region that make it a more attractive place to live can have the same effect on a local level.

Selling During the Holidays

It may seem like a terrible idea to try to sell your home during the holiday season — but actually it’s not. While selling a home can be somewhat stressful and the holidays are super-busy for most people, there are also some major advantages to selling at this time of year: your home probably looks wonderfully inviting and cozy, with pretty decorations; lots of other people are waiting until after the holidays to put their homes on the market, thus reducing competition; and people shopping for a home during the holidays are usually very motivated and will close quickly at or near your asking price. 

So now that you’ve decided it’s a great time to put your house on the market, here are a few tips to help you attract buyers and close quickly.

1. Create a cozy atmosphere. Especially if you’re in a cold-weather area, you will benefit from making your house warm and inviting. There are fewer hours of daylight now so make sure the rooms are well lit, and light the fireplace for added coziness.
2. Pay attention to all five senses. Play soft classical music; put out some delicious and delicious-smelling treats with holiday napkins; scatter soft and snuggly blankets that will make prospective buyers want to hang around. The longer they stay, the more they’ll envision themselves living in your home.
3. Decorate wisely. Usually when selling a home you’ll strip it down to the bare essentials and pack up personal items to make it easier for prospective buyers to envision their own belongings in the home. At holiday time, that conventional wisdom can go out the window. Make sure your visual presentation is festive, but don’t overdo it. Also, you’ll need to keep things more neutral and decorate on a seasonal theme, rather than being holiday-specific. Think snow scenes and pine boughs rather than Santas and menorahs.
4. Know your market. In general, people who are homeshopping during the holidays are very motivated to buy. Some people need to close before the end of the year for tax reasons; some are looking for a bargain; some are forced to move. Many people will be relocating in January to start new jobs, such as military families or college professors. Your real estate agent will help you target the right kind of buyers.

Putting your home on the market during the holidays can mean ignoring all the conventional ideas about preparing your home for sale. But you’ve got a different kind of buyer at this time of year, and you’ll want to make sure you target them with features that will make your home irresistible. 

Rely on your experienced and knowledgeable real estate agent to guide you through the season and help keep the holiday stress-free. And just think: Selling your home quickly at a great price is a wonderful holiday gift! 

By  BARRY ARTHUR MOELLER