When is the Real Estate Bottom Going to Arrive in Charleston SC?

Posted by Mike Ciucci on Friday, June 17th, 2011 at 7:31am.

I get a lot of real estate questions during work, at dinner parties, at kid’s birthday parties, from friends, from family- about the current real estate market here in Charleston.  The number 1 question that I’ve been getting lately is:

When are we going to see the bottom?

Well, if I had a dollar for every time I’ve heard that question.  The short answer is: I don’t know, but it could be now, depending on other factors, or your current situation.  I want to put something out there that I hope you buyers will take into account when considering purchasing at “the bottom”.  Know that every person’s situation is different when timing the market- but let’s look at one factor.  Do not only think in terms of home values when determining “the bottom”, but also take in to account whether the interest rates are moving as well.  Consider this:

  • A $200,000 loan amount at 4.5% for a 30 year fixed mortgage has a principle and interest payment of $1,013.37 for a total of $164,813.83 in interest over the life of the loan.
  • A $180,000 loan amount at 5.5% for a 30 year fixed mortgage has a principle and interest payment of $1,022.02 for a total of $187,927.28 in interest over the life of the loan.

As you can see, while the second scenario has a home that has come down significantly in value- by the interest rate going up 1%, it makes the home more expensive than in the first scenario.  Keep that in mind when trying to time the market, and talk to me about the other 5 factors that you need to take into account when timing for that perfect purchase.  The rule of thumb is: Don't try to get it perfect.  Buy a house for a home.

Do the math when timing the real estate market! 

Delinquency Rates 

Distressed States 

 

Delinquent Liens 

  Mike Ciucci Realtor

Mike Ciucci specializes in the Charleston SC real estate market.  He has been a Charleston realtor for over 15 years, focusing on quality and attention to detail his clients have come to expect.

Mike Ciucci
Carolina One Real Estate

Phone: 843.608.8378
Email: mike@buyingcharlestonrealestate.com

www.BuyingCharlestonRealEstate.com

2 Responses to "When is the Real Estate Bottom Going to Arrive in Charleston SC?"

Bethany wrote: How do you think this has changed in the past 6 months? Are we still looking at the same statistics?

Posted on Thursday, January 12th, 2012 at 5:43am.

Mike Ciucci wrote: Thanks for the comment Bethany. We are seeing an increase in home purchases (last month was the most since 2007), and we're also seeing less homes on the market for sale, and trending in the right direction. We will continue to see home values going down, but they have bottomed out in some areas surrounding Charleston- and have even seen positive numbers in areas.
Mike

Posted on Thursday, January 12th, 2012 at 6:31am.

Leave a Comment