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 

Posted by Mike Ciucci on


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

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

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.

Posted by Mike Ciucci on Thursday, January 12th, 2012 at 6:31am

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