Christina Mortti and I attended a conference on Wednesday from the Charleston area Wells Fargo representatives and they informed us that Wells Fargo has classified the Charleston market as a STABLE MARKET. Coming from one of the top lenders in the world, this is very exciting news for home sellers in Charleston.
The statement means that based on the statistics run by Wells Fargo for home prices, appraisal prices, homes on the market, and total number of home sales, Charleston has moved from a declining sales price market (or Buyers Market) to a market where home prices are stable and neither buyers nor sellers have a major advantage. Stable markets typically see normal appreciation (2% to 3% annual appreciation).
Why has this happened? In my opinion, the $8,000 first-time home buyers tax credit offered by the government has caused a flurry of activity in our market place over the past 2 months. We have seen an increase in homes under contract which has resulted in fewer homes on the market. The laws of supply and demand state that higher demand (due to the tax credit) and lower supply (due to the inventory being purchased) will cause an increase in prices.
This is a good sign for all homeowners... we shall see if the market remains stable after December 1, 2009 when the tax credit expires.
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