West Ashley Real Estate: 2014 Stats For 29414
Today I once again look at the Charleston MLS to see the numbers for West Ashley real estate. Yesterday I looked at the numbers from the 29407 zip code, today it is the 29414 zip code. First off are the Closed Sales:
That number is up slightly in December, from 67 in November to 73. June was the 2014 peak with 123 Closed Sales. The low point came in February with 59. Here is a look at 2014 compared to previous years for Closed Sales:
The Closed Sales numbers resemble the numbers for many parts of Charleston–a big increase in 2013, and another increase in 2014, but at a smaller rate. This is the same trend nationally, where home sales were explosive in 2013, but have settled into a more stable rate. It is important to understand that homes sales increased–just not at the same rate as 2013.
This is a good sign–a sign the market is stabilizing to a more sustainable, healthy rate of growth that can be maintained. You have to keep the proper perspective–home sales are still on the rise, and that’s a good sign.
So, home sales in 29414 are doing well, how about home values? Here is a look at the Average Sales Price for West Ashley homes for sale in the 29414 zip code–first, a look at 2014:
As you can see by the above graph, the Average Sales Price has been declining over the last few months of 2014. But, it is important to note that it has been declining from it’s 2014 peak.
That happened in September when the Average Sales Price for 29414 hit $243,776. In November it was $228,191, and December was $220,099.
December also happens to be the low point of 2014. So, is this a declining market, headed for doom a gloom?
I doubt it, but let’s look at some more numbers before jumping to that conclusion. Here is a look at Average Sales Price for 2014 compared to previous years:
As you can see, home values in 29414 are alive and well. In fact, many areas of Charleston saw a higher percentage increase in 2013 than in 2014. This trend is very similar to what the Closed Sales for 2014 graph above looks like.
For the 29414 zip code, it didn’t happen like that. 2013 saw a smaller increase in home values, and 2014 saw the bigger jump.
So far, there is no need to panic about the state of the West Ashley real estate market in 29414. It is worth keeping an eye on home values heading into 2015 to see where they trend. History may be an indication.
Here is a look at the home values from the previous years in a different format:
3 out of the last 4 years saw a drop in home values for 29414 to start the new year. However, then take a look at the graph trend overall–which way is it headed?
So, in a few weeks when I update the numbers for 29414, don’t be surprised if the home values are down. If history repeats, that will be the case, but then values will trend upward.
There are still some more numbers we need to look at to get a full perspective on the 29414 market. Here is a look at the Average Days On The Market (DOM) for 2014:
The Average DOM dropped in December, from November’s 55 DOM to 41. December tied September for the lowest Average DOM for 2014. The highest DOM came in January, at 77. As you can see by this graph, that number has been on the decline. So, more than likely 2014 should be a lower Average DOM than previous years:
Much like the other numbers, the Average DOM dropped sharply in 2013, and continued to drop in 2014.
The final number to look at is the Months Supply Of Inventory:
Good news–that trend resembles the DOM trend. The Months Supply for West Ashley homes for sale in 29414 is down to 3 months. That was the same in November, and also the lowest for 2014. February was the highest at 3.6 Months.
So, basically 29414 has been around 3.5 Months Supply for most of 2014. Here is a look at 2014 compared to previous years:
29414 is, and has been, in a sellers market. Typically in a sellers market home values increase. Although the Average Sales Price has trended down the last few months of 2014, overall they are up over 2013.
Based on the Months Supply, I think the drop in home values the last couple months is merely a hiccup.
Other factors could contribute to the recent decline–homes could have been overpriced. Perhaps many sellers saw values on the rise, especially in 2013, as well as early 2014.
When you overprice your home, you are chasing both buyers and the market. What ends up happening is you will sell for less than market value.
I looked at the Closed Sales from October to the end of December to make sure it wasn’t because of distressed sales. That wasn’t the case (only 17 of 219 sales).
I also checked the Average DOM for those 219 homes, and 72 of them were on the market for 55 days or longer (55 was the Average DOM for 2014). Of course, remember that the Average DOM bottomed out in September, the same month home values peaked.
I think it is very likely that many sellers in the last few months misjudged the market and overpriced. The demand is still there, and overall the market is doing very well in 29414.
This just illustrates the importance of knowing the market numbers, and why I do these posts. You are not likely to get the numbers and information broken down like this by the local media. Chances are, not too many agents will do this for you either.
However, whether you are looking to buy or sell, if you are entering the West Ashley real estate market it is important to know and understand these numbers so you can act accordingly and take advantage of this knowledge.
Buyers can search the West Ashley MLS and sign up to have a free list of homes sent directly to your inbox. These homes will match your criteria, in your price range and will be updated with new listings as they hit the market.
So, what will happen in the 29414 zip code in 2015? You can’t really predict it, but you can look at the recent past and especially the current (most recent) data to get a feel for where it is trending.
Stay up to date with the latest data by visiting (and bookmarking) my West Ashley real estate stats page.