December Charleston Real Estate Market Report

Residential Real Estate Market Sees Growth in November 

CHARLESTON, SC—(December 13, 2017) According to preliminary data released today by the Charleston Trident Association of Realtors® (CTAR) 1,356 homes sold in November in the region at a median price of $252,733. Last November, 1,267 homes sold at a median price of $242,920.

The year-to-date pace of growth in sales and median price in the region stayed constant through November, tracking 3% growth in sales for the year and 4% growth in median price. 16,832 homes have sold in the region at a median price of $250,000 thus far in 2017.  At this time last year, 16,302 homes had sold at a median price of $240,000.

“We are in a position to finish this year on a path of sustainable growth for the residential real estate market” said 2017 CTAR President, Dave Sansom.  “About halfway through the year, sales started leveling off from double-digit gains and brought us to growth of 3% for the year. I suspect that figure would be higher if we had more inventory, since there is still considerable demand in our market” said Sansom.

5,120 homes were listed as “active” for sale in the Charleston Trident Multiple Listing Service (CTMLS) at the end of the month, slightly higher than last month but about 12% fewer homes available than in 2016.

October Adjustment

Preliminary data showed 1,316 homes sold in October in the region at a median price of $250,080. Adjusted numbers now show 1,327 sales at a median price of $249,450.

Berkeley County

393 homes sold at a median price of $191,750 in Berkeley County in November. Year-to-date, single-family home sales have increased about 6% in the County, with buyers paying about 4.5% more than they did a year ago.  Condo and townhome sales have increased almost 28% with a 12% increase in price.

There are currently 1,014 residential properties for sale in Berkeley County—893 single-family homes and 121 condos/townhomes.

Find Berkeley County area reports here. 

Charleston County

656 properties sold at a median price of $293,836 in Charleston County in November. Year-to-date, single-family home sales volume is flat in the County, with buyers paying about 6% more than they did a year ago.  Condo and townhome sales and prices have both increased by about 5%.

There are currently 2,713 residential properties for sale in Charleston County—2,094 single-family homes and 619 condos/townhomes.

Find Charleston County area reports here. 

Dorchester County

240 properties sold at a median price of $191,150 in Dorchester County in November. Year-to-date, single-family home sales have increased less than 1% in the County, with buyers paying about 6% more than they did a year ago.  Condo and townhome sales have increased 4% with a 3% increase in price.

There are currently 760 residential properties for sale in Dorchester County—706 single-family homes and 54 condos/townhomes.

Find Dorchester County area reports here. 

Search all active listings on the Charleston MLS

Michelle Mustain

The Ebb and Flow Real Estate Team

843-338-4898

mickimustain@gmail.com

Renters Insurance

What rental insurance covers

Renters insurance covers belongings against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage - including if the upstairs neighbor's clogged tub overflows and damages items in an apartment below, according to I.I.I.

Flood insurance is available for renters from National Flood Insurance Program.

Renters insurance can also include additional living expenses coverage for those unable to live in their home because of a hurricane, fire or other disaster listed in the policy.

The coverage pays for hotel bills, temporary rentals, restaurant meals and other expenses incurred while a rental home is being repaired or rebuilt.

Renters insurance includes liability protection. This covers renters against injuries to people injured at your home or elsewhere, including a family member or your pet and it pays legal defense costs if you are taken to court.

Search Charleston MLS for available rentals

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Michelle Mustain

The Ebb and Flow Team

843-338-4898

Luxury Condo Downtown Charleston for sale or rent

This luxury condo is located in the heartbeat of the Peninsula on the corner of Cumberland and Concord enjoying protected views of The Ravenel Bridge, The US Custom House and the Cooper River. 

This custom built, double unit has marble floors and ornate mirrored walls in the foyer providing a luxurious first impression. The hallway leads to large and light filled great room with views from every window. Cherry hardwood floors throughout the home provide warmth and sophistication while a retractable projection screen TV and automatic blinds keep the home functional. Exceptional details throughout including the gourmet kitchen with natural stone fireplace, large master suite with fireplace and large balcony, and beautiful onyx master bath. 2 large en-suite guest rooms privately located.

Off the master bedroom, is a small workout room. These two additional guest bedrooms share a share a sitting room area. Within walking distance to restaurants and shopping and steps from Waterfront Park, this home is the perfect example of modern luxury in Charleston! 1.5 gated parking spaces per unit and a keypad entry with elevator. 

Click here to view more details

Click to view more Luxury homes for sale in Charleston, SC

Michelle Mustain

The Ebb and Flow Real Estate Team

843-338-4898

mickimustain@gmail.com

Tax laws for second-home ownership

 Current tax laws offer several tax breaks that can help make second-home ownership more affordable. Different tax rules apply depending on how you use the property, for either personal or rental use, or a combination of the two.

Personal Use

As long as you use the property as a second home – and not as a rental – you can deduct mortgage interest the same way you would for your primary home. You can deduct up to 100% of the interest you pay on up to $1.1 million of debt that is secured by your first and second homes (that's the total amount – it's not $1.1 million for each home). You can also deduct property taxes on your second home and, for that matter, as many properties as you own. Like a primary residence, however, you generally can't write off any of the costs associated with utilities, upkeep or insurance (there are exceptions to this; for example, you may be able to claim a home office deduction if part of your home is used for business purposes).

Rental Use – The 14-Day or 10% Rule

The tax rules are quite a bit more complicated if you rent out the property. Different rules apply, depending on how many days a year you use the home for personal versus rental use. There are three categories into which you may fall:

1. You Rent Out the Property for 14 Days or Less.

Your second home can be rented to another party for up to two weeks (14 nights) each year without that income begin reported to the IRS. Even if you rent it out for $10,000 a night, you don't have to report the rental income as long as the home was not rented out for more than 14 days. The house is still considered a personal residence so you can deduct mortgage interest and property taxes under the standard second-home rules.

2. You Rent Out the Property for 15 Days or More and Use It for Less Than 14 Days or 10% of Days the Home Was Rented.

This property is considered a rental property, and the rental activities are viewed as a business. If your second home is rented out for more than 14 days, all rental income must be reported to the IRS. You can deduct rental expenses (including mortgage interest, property taxes, insurance premiums, fees paid to property managers, utilities, and 50% of depreciation), but you have to factor in the amount of time the property is used for personal use versus rental use. And, as a rental property, up to $25,000 in losses might be deductible each year. Fix-up days don’t count as personal use, so you can spend more than 14 days at the property as long as it is for maintenance purposes. You should be able to document the maintenance activities, however, with receipts to prove you weren't using the property for leisure purposes on those days.

3. You Use the Property for More Than 14 Days or 10% of the Total Days the Home Was Rented.

If you use the property for more than 14 days, or more than 10% of the number of days it is rented (whichever is greater), the property is considered a personal residence and the rental loss cannot be deducted. If a member of your family uses the property (including your spouse, siblings, parents, grandparents, children, and grandchildren), those days count as personal days unless you are collecting a fair rental price.

Selling Your Second Home

Tax laws allow you to take up to $500,000 profit ($250,000 if you are unmarried) tax free on the sale of your primary residence. This primary-home sale exclusion does not apply if you sell your second home: If you sell a house that is not your primary residence, you may have to pay the usual capital gains tax. If you make the second home your primary residence for at least two years before you sell it, however, you may be able to reap some tax benefits, but it's not as easy as it used to be.

Prior to Jan. 1, 2009, you could move into your second home, make it your primary residence for two years, sell it, and take advantage of the primary-home sale exclusion. Now, as a result of new laws associated with the Housing and Economic Recovery Act of 2008, you can still make your second home a primary home before you sell it, but you'll owe taxes for the period of time that the property was a second home after Jan. 1, 2009. The IRS now uses a ratio of the years you occupied the home as a primary residence versus the years the home was used as a rental (or other-than primary residence) to calculate the amount of capital gain that will be excluded from the sale.

For example, the Smiths purchased a second home in 2004. They continued to use it as a rental home during 2009 and 2010, and then used the home as a primary residence during 2011 and 2012. Only 50% of the capital gains from the sale of the home will be tax free (up to the $500,000 exclusion) since the home was a primary residence for only 50% of the time after Jan. 1 2009.

1031 Exchanges

A 1031 exchange, also known as a like-kind exchange or tax-deferred exchange, is a transaction where a seller swaps a rental or investment property for another rental or investment property of equal or greater value, on a tax-deferred basis. The advantage is that the seller may be able to avoid paying capital gains tax on the exchange. A property must be considered a rental property (and not a personal residence) to qualify for a 1031 exchange. This means that you must rent out the property for 15 days or more, and use it for less than 14 days or 10% of days the home was rented.



*Since tax laws are complicated and do change, owners and potential buyers should consult with a qualified real-estate tax specialist to gain a full understanding of tax implications and laws, and to determine the most favorable ownership strategy.

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Michelle Mustain
Your Charleston Real Estate Expert
The Ebb and Flow Team

Should you rent or buy a home?

7 reasons why to stop renting and purchase a home

Click here to search all Active MLS listings in the Charleston and surrounding areas

Still renting? You must have a good reason. Although, we're not really sure what it is. With rents continuing to rise across the country, interest rates staying around historic levels, and new loans lowering down payment requirements, it just makes sense to take the leap to homeownership. Maybe you've got terrible credit and don't want to take the time to improve it (or don't know about loans that accept lower scores)? Or, maybe you just like giving your money away. If you're still not on board, these 7 reasons might change your mind.
Because owning a home is still less expensive than renting across the country

GOBankingRates' annual survey of "the cost of renting versus owning a home in all 50 states and the District of Columbia" just came out, and, while they "found that the number of places where it's more expensive to own than rent has increased," the number went from 9 to 11. That means that, in 39 states, it still makes more financial sense to buy.
Rates are near historic lows
We're spoiled. Seriously. Anyone who has been paying attention to the market over the last few years and has seen interest rates with a 3 or 4 before that decimal point may just think it'll always be that way. But history has a way of repeating itself, and while we may not see rates in the teens again anytime soon, most industry experts have been predicting rates moving into the 5s sometime this year, with a pattern of rising rates beyond. Buying a home while money is cheap is a smart move.
"A difference of even 1 percent can have a major impact on your total payments over time," said ZACKS. "For instance, a $200,000 mortgage for 30 years at an interest rate of 5 percent would require a monthly payment of $1,073.64. By comparison, the same mortgage at 4 percent interest would result in a payment of $954.83." That might not seem like a big deal every month, but, consider the long-term potential: "Over 30 years, the total difference between the two would be $42,771.60."
FHA loans and the like make it easier to qualify
Don't have an 800 credit score? You don't need to today. FHA requirements are lower than conventional loans, and you may already be where you need to be to qualify. "The average FICO score for buyers who finance FHA loans is 683, according to Ellie Mae. That's considerably lower than the average score of 753 for conventional, non-FHA financing," said Interest.com. "Most lenders have a...minimum of 600."
A little thing called equity
Rising rents may or may not equate to rising property values in your area, but either way, you're not going see any financial benefit from it. When you own your home and your equity rises, that equity is yours. And so is the choice of what to do with it. Whether you decide to let it sit and continue to grow or tap your equity for home improvement projects, the money is yours to decide how to use.
The days of the 20 percent down payment are all but goneDoes 20 percent down make it more likely that you'll qualify for a loan? Sure. Does that mean you have to come up with that huge chunk of money? No. Nor do you have to come up with 10 percent down, which, for some reason, the majority of new buyers seem to believe. "87% of first-time buyers think they need 10% or more down to buy a home," said The Mortgage Reports.
The FHA loan is one of the most popular loans available to first-time buyers because, not only can you qualify with a fair credit score, but the down payment is as low as 3.5 percent, and, "100 percent of the down payment can be a financial gift from a relative or approved non-profit," they said. But, it's not the only option for a low down payment. Fannie Mae's Conventional 97 Mortgage and HomeReady Mortgage require just 3 percent down. The Mortgage Reports also has information on closing cost help and down payment assistance programs.
Rents keep rising
Unless you're in a rent-controlled apartment (and, bless you if you are since there are so few left), your rent is just going to keep going up every year. Apartment List's monthly National Apartment List Rent Report shows that, "Our national rent index is continuing to climb, with month-over-month growth of 0.5 percent for June. Rents grew at a rate of 0.5 percent between May and June, which is generally in line with the monthly growth that we've seen over the course of this year thus far. Year-over-year growth at the national level currently stands at 2.9 percent, surpassing the 2.6 percent rate from this time last year. In addition to the growth on the national level, rents are now increasing in nearly all of the nation's biggest markets."
When you own your home, your payment is your payment is your payment. Unless you take out a home equity loan or refinance to take cash out, your payment's not going to go up.
Tax breaks
Here's another bit of fun for renters: nothing you pay comes back to you. I mean, except for that security deposit, but that all depends on what effect your dog and those few parties you threw had on the condition of the home. As a homeowner, you get to write off all kinds of stuff, which lowers your overall costs. "Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest. And all that interest is deductible," said Bankrate. "Did you pay points to get a better rate on any of your various home loans? They offer a tax break, too. The other major deduction in connection with your home is property taxes."
And think about it this way: Even if your house payment is going to be a little bit higher than what you're currently paying in rent, it's not an apples-to-apples comparison. How do those numbers look when you calculate the tax savings?

Article brought to you by Realty Times

Michelle Mustain

Ebb and Flow Real Estate

A House 'SOLD' Name

843-338-4898

Charleston MLS

"My Mission is to build lifelong relationships with my clients. This means being there by your side to help guide you through each  step of the buying or selling process. My commitment level has helped me build a notable track record of delivering powerful results."

Homes for rent in Charleston, SC

Looking for a rental in the Charleston area to call your home?

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All Listings are updated Live instantly. Please click the link below to view rentals.

Happy Home Shopping.

Homes for rent in Charleston, SC

Please feel free to call, Text or email any questions and/or to schedule a showing.

Michelle Mustain

A House 'SOLD' Name
The Ebb and Flow Real Estate Team
843-338-4898

   

"My mission is to build lifelong relationships with my clients 

and this means being there by your side to help you 

in understanding each step of the buying or selling process. 

This commitment level has helped me build a notable track record 

of delivering powerful results."

Tips for having a Garage Sale

Move
| By: Erik Gunther

When you are preparing for a move, a garage sale or yard sale is one of the best ways to clear away the clutter of old, unwanted stuff. Wading through your accumulated items may be a bit overwhelming, but it’s not as bad as moving to your new home with a bunch of boxes filled with things you don’t need. And, if you plan properly, you could end up with a sweet wad of cash in your pocket. Where to begin? Follow these tips for a great sale:
Advertise
Advertise your upcoming sale like crazy. Put an ad on your local Craigslist and detail what you’ll be selling. If you want your ad to stand out, be creative! Try headlines with a bit of humor or hype to increase interest.


Price Your Items
If you like haggling and don’t mind answering questions every time someone picks up or points at an item, don’t bother with pricing every piece. However, if you’d rather give shoppers a heads-up while you kick back in the shade, get some ready-made pricing stickers to put on the items.


Get Real
Be realistic with your price points. Very few buyers at garage sales are expecting to spend big bucks. If you have time before your sale, visit a couple of other neighborhood sales to gauge prices.


Bank Run
The day before the sale, make a run to the bank to get small bills and change.


Signage
Put up signs on busy streets and around your neighborhood that will lead shoppers to your place. On the signs, use black ink on a bright background and keep your message simple and easy to read.


Be Friendly
Greet your customers and let them know you’re there to answer any questions. A little friendliness goes a long way in encouraging sales.


On Display
Merchandising your items is key. Think about how stores pull in shoppers. A well-organized display of your wares will pique the interest of buyers and result in more sales. Take your stuff out of boxes and group items in a visually appealing way.


Increase Traffic
Put big-ticket items such as furniture, electronics or eye-catching pieces of art closest to the street or in a prominent spot for maximum visibility.


Giveaways!
Put together a catch-all box of junk and make a bright “Free Stuff” sign. Place this free box on the curb. Most shoppers driving by a garage sale can’t resist the allure of the lowest possible price point.


Make it Walkable
Create pathways through your merchandise. Shoppers who feel comfortable that they won’t knock something over or trip over a box will spend more time browsing and buying.


Don’t Take it Personal
Divorce yourself from any emotional attachment to your stuff. Buyers probably don’t care to hear about the history behind your possessions, they’re just looking for bargains.


Be Ready for Lowballs
Keep in mind that you’re trying to get rid of stuff and that low-ball offers are a part of the game. If you have truly valuable items, try selling them individually through eBay or Craigslist.


Be Flexible
Get flexible with your pricing as the day goes by. Knock a dollar or two off a listed price. Offer package deals to folks buying multiple items. Encourage customers to grab anything remotely interesting. You want to end the day with minimal leftovers – so don’t take a hard line on items you never have to see again.


Donation Time
Arrange to donate the leftover items at the end of the day. Make sure to get a receipt for your donation for a tax write-off.

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Charleston Real Estate and Property Management

Michelle Mustain

843-338-4898