With all of the doom and gloom we are hearing in the media, I have had many clients and customers ask me, “”Is there a housing bubble about to burst in Summerville or Charleston?”
In order to answer that question we need to rewind to 2007 when there was indeed a housing market crash and a very real bubble burst not only in our area, but nationwide. This was created by a tremendous amount of inventory, as high as 12,000 houses on the market in the tri-county area. (Dorchester, Charleston and Berkeley County) The prices became so inflated that buyers stopped buying and with so much inventory on the market, the Charleston, SC bubble burst. It eroded housing values almost 30% in Summerville, Mount Pleasant, Charleston and the surrounding areas.
In 2012 we hit the bottom and went sideways and inched up a half of a percent. In 2013, the prices rose 7.5%, followed by 7.5% in 2014 and 4% in 2015. However this is still 11 percent less than eight years ago. Right now, we have 5,651 houses on the market, this is less than half the houses on the market in 2007. Inventory being low will keep pushing the prices back up to where they were. The reason there is still a low amount of inventory is what we call the waterline. A lot of people are still at the waterline or 10% under the waterline if they bought their house 7 years ago. As a result, they can not reenter the Summerville SC Real Estate Market.
If you want to identify whether you are at the waterline or above it and can move and make money, give me a call at 843-974-6029 or fill out my What is My Home Worth form and I will be in touch.
Foster Smith – 843-974-6029.