Every new beginning comes from some other beginning's end. As we reflect on 2014 and look forward to 2015, we attempt to look into the real estate crystal ball for insight and wisdom for the new year. Comparing 2014 to 2013 shows some positive signs; however, we are most grateful that we aren't heading back into 2009.
The entire Charleston residential real estate market had increases from 2013 to 2014 in sales transactions, dollar volume and median sales price. The average Charleston sale was 5.5% higher in 2014 than in 2013.
Our MLS statistics for Kiawah are not an entire snapshot of the market because Kiawah Island Real Estate does not place their listings in the multiple listing service; however, the MLS companies had a 38.6% increase in sales transactions. The report shows the average sales price is down. This is somewhat misleading because of an increase in the sales of lower priced villas and several "shares" of properties. Also, in 2013, there was a $10,700,000 sale, which inflated the average price for that year. Overall, the MLS companies on Kiawah had a nice year and the properties that sold closed at 92% of the listing price and 84% of the original listing price.
Seabrook Island gained some momentum, too. The number of sales transactions increased 11.2% and the average sales price increased 15.3%. We don't think this was necessarily market driven appreciation, rather a reflection of a lack of distressed sales, which were more prevalent in 2013, which lowered the average sales price. There is a lot of new construction on Seabrook and because of the sheer number of lots for sale and the lack of newer, attractively priced homes under $1,000,000, we expect 2015 to see an increase in land sales and even more new construction. This is very healthy for Seabrook.
Our Johns Island clients and friends saw a decrease in sales by 17.3%; however, this seems to be purely driven by the increased sales prices which were 10.1% higher. Additionally, the number of listings that entered the market place decreased. We believe an increased price trend will continue for Johns Island, but not at 10% per year. Furthermore, we expect the number of transactions on Johns Island to start increasing due to the enormous amount of new communities and developments which are either under way or planned.
Mt Pleasant South of 526 had an increase in average price by 10.3%,a decrease in sales transactions by 9.2% and a decrease in new listings by 8.3%. With fewer days on the market and properties selling for 97% of their listing price, this still is a very hot market.
The primary residential markets in Charleston are very healthy and show positive signs for continued growth. The second home markets of Kiawah and Seabrook are much better than 2009 and 2010; however, most of the buyers are still cautiously optimistic and are discretionary income purchasers. Based on inventory numbers and increased traffic, prices in the second home markets should begin to follow the positive patterns of the primary residential markets.