Pent Up Demand makes the Summerville Market Surge upward!

We have been tracking the impact of COVID19 on the Summerville Market consistently over the last few months  and more stats have come in from the CFO of Carolina One.

“The news in our local housing market continues to be excellent! Last week saw another record week in terms of ratified contracts in the CTMLS with 497 properties going under contract.

The take aways for the week as I see them:

(1) We have now posted two consecutive record weeks of properties going under contract. The bottom of the market appears to have been about 7 weeks ago.

2) The CTMLS almost flat to last year in ratified contracts despite a pandemic shutdown!!!

• The CTMLS is now down 1% year to date (nearly flat) versus last year in ratified contracts – and last year was one of the best years ever in the CTMLS.

(3) Showings continue to track much closer to last year’s level, -7% last week versus the same week last year in a market where active listings are -12% versus the same time last year.

(4) You will see media emphasis on the decline in showings. Here is what these reports are missing:

• Inventory is down more than the showing levels are (there is less to show)
• Many showings are happening outside of ShowingTime
• Due to safety concerns, buyers, sellers, and agents are vetting showings much more closely (buyers ruling properties out online, sellers are inquiring more about a buyers motivation and qualifications more than they did previously)

(5) The media is reporting on the year over year decline in closed sales in April. This is accurate…but also not terribly informative. Why?

• Closed sales are a lagging indicator of the market behind ratified contracts. Closed sales tell you what home buyer sentiment looked like 30-60 days ago.
• Ratified contracts track current consumer sentiment much more closely than closed sales do.

 

(6) Inventory is critically low, -12% versus last year’s already too low level of listings.

 

(7) There are reasons for concern.

• Unemployment is extremely high and this will eventually come home to roost.
• While restrictions are easing, we could face another business strangling shutdown if cases flare up again” Dave Sansom CFO/COO for Carolina One

Please do not hesitate to call or email with any real estate questions you may have during this time.