Selling A House Charleston SC: Is 2015 A Breakout Year For Sellers?
If you are thinking of selling a house Charleston SC, 2015 is the time to do it. Market conditions are very favorable for home sellers right now, and it is also a good time to buy as well.
For much of 2014 it seemed as though we wouldn’t see the same number of home sales that we saw in 2013.
You may have heard headlines that said home sales were down, and perhaps you believed the hype. It is quite possible that had an affect on many would be home sellers, causing them to decide not to sell.
However, home sales were down a few months of 2014 because there simply wasn’t enough inventory to meet demand. In fact, home sales increased in 2014 both nationally and in Charleston:
In 2013 we saw a decline in home sales starting in August and continuing into 2014. Despite this, home sales were very strong overall.
We didn’t see that decline in August of 2014. In fact, 2014 ended very strongly, and we experienced the best winter in a decade. That strong showing is continuing into 2015.
As strong as home sales are, they could be stronger of there was a larger inventory. The greater Charleston SC real estate market has been a sellers market for the last 2 years.
Simply put, demand is stronger than supply. So, despite this, why aren’t more home sellers selling?
According to a recent article from the National Association Of Realtors (NAR), there are a few reasons for this.
First, home owners are keeping their houses for longer than they ever have historically.
It used to be that home owners would sell their homes every 6 or 7 years. Today, the average home owner is staying in their homes for 10 years.
One big reason for this is the weak economy of the previous years.
A lot of that had to do with the real estate crash.
Many home owners found themselves upside down when the real estate bubble burst, and selling wasn’t an option.
No doubt the recent troubles with the economy and the real estate market made many people wary of market conditions. They simply didn’t have faith in the market conditions and decided to remain conservative.
It is likely that many people are still afraid of the market–they are still feeling a post bubble hangover.
However, the market has already rebounded, and it is once again thriving. Consumer confidence is at an 11 year high, the economy is growing stronger, and more and more jobs are being created.
Is 2015 A Breakout Year For Home Sellers?
The NAR article compares what has happened in the real estate market to what has happened with the auto industry:
“A somewhat related trend was occurring for vehicles. The historic average age of a car was around 9 years. Then it rose to a record high of 11.4 years in 2013 and car sales remain tepid. But then in 2014 vehicle sales began to soar above historic average – to make up for the lost years, perhaps.
The reason for holding on to the car for longer up to 2013 was no doubt due to weaker economic conditions and stagnant wages. However, with the economy strengthening and the job creation accelerating, people are ditching their old cars for new shiny ones. Could a same bursting out phenomenon occur for home sales in 2015?”
As the article points out, although there are similarities between home sales and auto sales, homes differ because many people were upside down on their homes and selling wasn’t an option.
However, the article also points out that national home values have increased by 25% over the last 3 years, and now the number of home owners that are under water has dropped to a small percentage.
One other factor for home owners keeping their home longer has been historically low mortgage interest rates.
People simply do not want to give up the interest rate they have.
However, interest rates are still near their historical lows, and are much lower than they have been in decades.
What many home owners don’t realize is that these mortgage rates can work to their benefit. First, these low rates are bringing many buyers to the market, especially Millenials that are buying their first home.
Home owners have one of the best opportunities in years to sell–the demand is strong, home values have increased (and continue to rise), and low interest rates mean you can move up and take advantage of these low interest rates as a buyer.
2015 could be a break out year for the real estate market. The auto industry saw a similar slump over the last few years before having a breakout year in 2014.
Perhaps it is a sign that as the economy strengthens and consumer confidence is high, real estate will see a similar result.
If you are thinking about selling your house Charleston SC, then bee sure you hire the right Realtor–visit my Pam Marshall Realtor website for more helpful home selling information, and below you can download a copy of my “Winter 2014/15 Sellers Guide”.
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