Dear friends and neighbors,

As we end the first quarter of 2010, I want to share our thoughts at Carolina One Real Estate with you about the Charleston real estate market.

Fortunately, it appears that the worst of the market is behind us. If you look at the real estate market as a pendulum, 2005 would be one extreme, with demand far exceeding supply, loose credit and rapidly escalating prices. In contrast, 2008 and 2009 were the opposite extreme, with record levels of inventory, restrictive credit, and fewer buyers. A healthy balanced market is somewhere in the middle and, while the return will be gradual, rest assured we have started on the road to recovery.

Compared to the same time last year, the number of homes sold is up 8%. Interest rates remain at historic lows, mortgages are available for qualified buyers, and values are excellent. Finally, while our country still faces complex economic challenges, we are particularly encouraged that several national publications have very recently named Charleston as one of the top cities to hold value and lead the way to recovery based on our lifestyle, climate, and new job growth.

If you find yourself in the real estate market today, what does all this mean for you? If you’re a seller, while the number of sales are increasing, there is still an over supply of homes on the market and, on average, only about 1/3 of all homes for sale actually sell. Serious sellers must compete on price and condition.

If you’re a buyer, now is the best opportunity in decades. Be assured that real estate remains a solid long term investment with historical appreciation, on average, of 3 – 5% a year. Also, as interest rates increase with economic growth, the result will be increased monthly payments or decreased affordability. Of course, these are generalities and each property and each situation is unique.

Now, more than ever, making a smart real estate decision requires the guidance of a knowledgeable and professional Realtor. Carolina One’s role goes far beyond selling homes. Our sales associates have successfully served Charleston’s real estate needs for over 45 years, helping buyers and sellers navigate through challenging markets like 17 – 18% interest rates, Hurricane Hugo, closure of the Naval Base, and September 11 sales associates to represent them. Their knowledge of the local market, their commitment to education, and Carolina One’s unmatched marketing and internet exposure are just a few of the many reasons they get results. As always, your best interest is our priority.

If you have a question about the market or want advice about your specific situation, as always, it is our pleasure to help.