Understanding the Current Real Estate Market
Right now, it is a hot real estate
market. One could compare the current market to “Charleston hot” in August when
humidity and heat mix for uncomfortable and sticky perspiration. We have less
than 2,000 active listings and rising prices: the typical result of low
inventory and high demand. Couple this with low interest rates – buyers’ demand
is even more insatiable. We haven’t seen anything quite like it in recent
history. How long this type of market will last, we aren’t sure – but for now,
this real estate phenomena exists, especially here in the Charleston market.
Wanting to get a better understanding of this market and its
implications for buyers and sellers, I asked several real estate agents a few
questions and to share their thoughts with me:
What
impact is the current real estate market having on buyers?
Buyers are nervous. They know they could be in
multiple offer situations and when they lose a home, they get frustrated.
Some buyers that do not have to move are backing off. Prices in our area
are going up and making homes out of reach for many. Those buyers are moving
further out, which can mean higher commute costs. Overall, this
market does have its downside.
Franne
Schwarb, Realtor®, Coldwell Banker
The lack of inventory is the biggest issue buyers are
facing. Homes that are well staged and in good repair are selling at a premium
price right now. Buyers are able to pay the higher prices because mortgage
rates are still so low, but most don’t really want to do a lot of work once
they buy.
Noah Moore,
Realtor®, Carolina One Real Estate
It is definitely putting a sense of urgency on
buyers, and rightly so. Our inventory from late fall to now, which was
already low at that time, has now been cut in half. Multiple offer
situations, but buyers still want close to perfection on homes; ideally, most do
not want to do any renovations or improvements.
Kim
Meyer, Realtor ®, Keller Williams Realty
What
is the pulse of sellers right now?
Some sellers think they can ask anything for their
home and get it. I like to call that a “wish price”. We
will list a house for whatever a seller wants us to, but they must keep in mind
that it has to appraise and if they get greedy it could sit on the
market. We don’t know what the future will hold and the market can turn.
Franne
Schwarb, Realtor®, Coldwell Banker
There are a lot of people selling so they can move closer to
family or have more room now that they have spent so much time at home. It
seems that the biggest hold up for people not selling is the uncertainty of
where they will buy next. The problem is that once you do find that perfect
place it may be too late if you are not ready on your end. Although some
homes are selling quickly, there is a misconception of what will sell
fast. We tend to see this with homes that are put on the market that are not
ready (staging, repairs, landscaping).
Noah Moore,
Realtor®, Carolina One Real Estate
Sellers should not stop with plans on improvements or
making sure it is Real-Estate-Ready, and that’s where staging comes in.
Kim
Meyer, Realtor ®, Keller Williams Realty
What advice would you offer to homeowners who are considering
selling in the next couple of months?
Use a REALTOR®. There is a difference between a REALTOR® and
a real estate agent. Do your homework and make sure your agent does
the same. Know your competition. My best advice: use a
stager. You don’t get a 2nd chance to make a 1st impression.
Franne
Schwarb, Realtor®, Coldwell Banker
Work with professionals. Have your home ready so you
don’t run into surprises at every corner. Think of what you would want if you
were purchasing a new home for yourself. Ensure your home is
professionally photographed, get professional advice for staging your
home, and get a pre-inspection for your home. Do all of these things with a
purpose so you can quickly get your home on the market. It is the perfect
time!
Noah Moore,
Realtor®, Carolina One Real Estate
Curb appeal a must; fresh paint, plantings, even
house numbers make a difference in addition to having the interior clean, tidy,
and expertly staged.
Kim
Meyer, Realtor ®, Keller Williams Realty
Based
on the answers of these real estate professionals, it is clear that while the
market is hot, sellers should still be aware that a move-in ready home is the
most marketable and desirable. Buyers should also be ready to make offers
quickly, given the low inventory and eagerness of buyers. No matter what market,
professional staging is a necessary component that these Realtors® value and
recommend.
Lorelie Brown,
M.A., CPRES, CID is the Owner of Showhomes Charleston in Charleston, SC. RESA-PRO
member, an HSRA-Elite Member and part of HSRA Elite Leadership. She is passionate about the power of home staging and has staged over $300 million in real estate.