James Island Real Estate: Highest Home Values In At Least The Last 10 Years!
Here are the latest stats from the Charleston MLS to see how the James Island real estate market is doing. First up, the most recent stats for Closed Sales:
Like much of the Charleston area, these numbers have jumped up in 2015. In January, there were 48 Closed Sales, then 53 in February and up to 91 in March. Last March, there 59 Closed Sales.
The peak month for 2014 was in August with 101 Closed Sales. Prior to that, there were also 101 Closed Sales for homes for sale James Island in May of 2013. Prior to that, the highest month was 119 in June 2006.
Here is a look at Pending Sales:
That number has also jumped up. From 66 in January, to 80 in February, and up to 114 in March. Last March there 94 Pending Sales, although that was not the 2014 peak. That came in May with 99.
So, we have already exceeded last year’s peak, and we are only in April. In fact, this is very similar to the trend nationwide. In February, the number of Pending Sales was the highest since June 2013 (March numbers won’t be released until the end of this month).
March Pending Sales not only exceeded the highest level of 2014, it was the most James Island Pending Sales in one month since April 2006 with 118.
Here is a look at home values, starting with Average Price Per Square Foot:
That number too is on the rise, although it did take a small dip in February. in January, the Average Price Per Square Foot for homes for sale James Island was $167/sq ft.
It dipped down to $158/sq ft in February, then back up to $162/sq ft in March. Last March it was $152/sq ft.
That January number is important because it is not only higher than the peak of 2014 (May at $153/sq ft), it is the highest month since September 2008 at $168/sq ft.
Let’s look at the Average Sales Price for James Island real estate:
For 2015 so far, that number peaked in January. From $435,166 in January, it dropped to $338,241 in February, and down to $309,433 in March. Last March it was $295,304. The peak month for 2014 was May at $333,708.
At first glance it is a little disappointing to see that number on the decline. However, you have to realize that January far exceeded the entire year of 2014.
Not only is January the peak of 2014 and 2015 (so far), but it looks like the peak for James Island real estate–period.
Here is a look back at the last 10 years of Average Sales Prices for James Island:
The closest month on that graph came in January of 2007 at $401,734. January of 2015 is still nearly $35,000 above that, and it is also over $100,000 over the peak of 2014.
In fact, May of last year is the only month that was above March 2015.
Here is a look at year-over-year prices for March 2013, 2014 and 2015:
Beware of reports that “James Island home values are down!” as they do not tell the full truth. As you can see, home values have dropped since January. But, they were dropping from what appears to be the all time high for James Island real estate home values.
And, the graph above clearly shows that home values are doing just fine on James Island.
Here is a look at Average Days On The Market (DOM):
That number is also declining. From 80 DOM in January, up to 84 DOM in February, down to 62 DOM in March. Last March it was 92 DOM. March was the highest DOM in 2014, the lowest came in August at 50 DOM.
August 2014 was the lowest Average DOM since July 2006, which was also 50 DOM.
Finally, here is a look at the Months Supply Of Inventory for James Island homes for sale:
Like much of the Charleston area, that number keeps dropping. For March, it is at 2.6 Months Supply. That is the lowest since January 2006 which had a 2.5 Month Supply. This indicates a very hot sellers market.
So what does all of this mean for buyers of James Island homes for sale?
Like most of the country, the buyer demand is out there and it is strong. The big problem is lack of inventory.
For James Island buyers, it is good to see home values come down some, off of the January peak. Prices still remain near their all time highs, though. With interest rates still below 4%, that softens the blow a little.
For sellers, there simply isn’t enough of you. Although would be sellers missed out in January, that doesn’t mean you shouldn’t sell.
Prices remain high, and buyer demand is strong. Right now, we are seeing some of the best numbers for James Island real estate since the bubble.
Will home values level off, or continue to drop? Or, could we see them exceed January? After all, the Spring and Summer seasons are upon us, and buyer activity should remain strong. If inventories remain low, that will drive up the price.
Smart buyers and sellers know their market numbers. Both sides should be watching the number of James Island homes for sale and see how they compare to the Average Sales Price, Average Price Per Square Foot and Average DOM numbers.
Simply being listed does not mean you will sell your house. Even with the strong buyer demand, buyers still will not over pay for a house.
Most buyers do not want a house that requires some work–houses that require “some TLC”, “cosmetic work”, or allow the new owner a chance to “put your finishing touches on it” are houses that are not selling.
The current numbers for James Island real estate: 177 Active listings, 32 Pending Sales and another 162 homes under contract (Contingent Sales).
First off, that looks very promising for Closed Sales numbers. Keep in mind last May was 101 Closed Sales, the most since June 2006. Right now, there are 194 James Island homes under contract.
These homes will be closing over the next 30-90 days, so we should see Closed Sales numbers remain about the same, at the very least. Likely, that number will increase.
Looking closer at the numbers shows that pricing your home right and having it in it’s best showing condition still matters for home sellers, even in a sellers market.
For the 177 Active listings, the Average DOM is 101, and the Average List Price is $447,216.
For the Pending Sales, the Average DOM is 29, and the Average List Price is $320,187.
For the Contingent Sales, the Average DOM is 72, and the Average List Price is $350,023.
Now, keep in mind that the Average DOM in March is 62 (down from 84 in February) and the Average Sale Price was $309,433 (down from $338,241 in February).
Notice that the homes under contract have lower Average DOM numbers than the homes currently on the market? They also are priced closer to the market numbers as well.
It is critical that sellers understand that prices are coming down right now, and should price accordingly.
You should not attempt to “test the market” right now–if you aren’t serious about selling, then don’t list your home. You are just wasting everybody’s time, including your own.
Make sure you know the market numbers, whether buying or selling.
It is also important to work with the right Realtor. If you are thinking about buying James Island homes for sale, then visit my Pam Marshall Realtor website.
You can search the James Island MLS, download helpful Home Buying Guides, see some helpful videos, and sign up for a list of James Island homes for sale delivered to your inbox.
If you are thinking of selling, then see my Pam Marshall Realtor sellers page. You too can download Sellers Guides, see some helpful videos, and learn more about my marketing that gets homes sold.
To keep up with the latest stats on James Island homes for sale, see my James Island real estate stats page.