March 20, 2009

The 2009 real estate market is off to a slow start.  the first two months of 2009 saw the number of Tri-County transactions drop 42% from the same two-month period in 2008.  Since November, the number of transactions that occur each month have been roughly one third of what they had been during the corresponding months peak year 2006.  The monthly number of transactions is roughly half of the average number of corresponding monthly transactions over the last nine years.

In January, the median price of a home sold in the Tri-County region was $177,500, down 16% from the $210,600 median price of a home sold in January of 2008.  In February, the median price of a home sold in the region had climbed back $7,400 to $183,900.  This $183,900 median price was 10% less than the $205,000 median price experienced in February of 2008.  Expect to see a bumpy plateau of median price fluctuation between $170,000 and $210,000 in each month of 2009.  This is because in any given month, there may be more discounted homes sold at the higher end of the market than there are in the low end of the market.

Take I’On for example.  Below is a table showing the five homes that have closed in the neighborhood thus far in 2009.

The lowest price home – 90 North Shelmore – sold for $690,000, or 95% of the list price (87% of original list price).  The highest price home – 15 Eastlake – sold for $1,135,000, or 91% of the list price (73% of original list price).  The median price of the five homes sold was $1,050,000, substantially greater than the $815,000 median price of the 54 homes sold in I’On in 2008.  The increase in median price was due to greater discounting at the higher end of the market.  Such discounting will happen throughout the Tri-County region, but particularly in those areas like downtown Charleston and the islands that experienced the greatest price appreciation prior to the bubble bursting.

Forclosures, short sales, and high inventory levels will continue to put downward pressure on prices in I’On and throughout the Tri-County region.  Nevertheless, because of greater discounting at the high end of the spectrum, by year end I wouldn’t be surprised to see the 2009 median price for the Tri-County area near or slightly above 2008’s $205,000 median price.  To reiterate, this wouldn’t necessarily mean the market improved, it would just reflect greater discounting at the higher end.

I’On Inventory.  As of this writing, three homes are under contract.  Normally, there are at least nine under contract this time of year.  83 homes are listed for sale.  Two of these 83 listings are for homes that have yet to be started, and two more are for homes still under construction.  Taking away these four, leaves 79 completed homes on the market in I’On.  These 79 homes range in price from $499,000 to $2,700,000 with an average asking price of $1,100,000.  They have been on the market for periods ranging from a few days to almost 4 years, with an average of 14 months.

12 of the 70 homes were recently listed (placed on the market since the beginning of the year).  Of the remaining 67 placed on the market before January 1, 2009, one was listed in 2005, 10 were listed in 2006, 23 in 2007, and the remaining 33 were listed in 2008.  The prices of 34 of those 67 have been reduced since January 1st.  These reductions have ranged from $10,000 to $230,000.  If you have a home on the market and are seriously interested in selling it, then given the state of the economy, the dearth of homes under contract, and the recent sales comparables, consider reducing the price or further reducing the price.

With the “Idles of March” just past, this famous passage from Shakespeare’s Julius Caesar seems a timely reminder for pricing strategy:

There is a tide in the affairs of men.

Which, taken at the flood, leads on to fortune;

Omitted, all the voyage of their life

Is bound in shallows and in miseries.

On such a full sea are we now afloat,

And we must take the current when it serves,

Or lose our ventures.

Some recent good news:

1.  Mortgage rates have fallen again, making home ownership even more affordable.  If you haven’t refinanced your home in a while, now would be a good time to do so.

2.  Ground was recently broken on four new homes in I’On.  Three of those are custom homes.  Now is a fantastic time to consider building a home as construction costs are the lowest they’ve been in a long time.

3.  The fourth of those homes started last month will be

Coastal Living Magazine’s 2009 “Idea Home.”  Built by Structures Building Co. on Jefferson Canal, this home will be open for tour late summer and be featured in the October issue of the magazine.  The first ever Coastal Living Idea Home was built on Sowell Street in 1998.  We are proud to have been selected once again.

4.  Several more homes will start over the next three months.  They will be built on lots recently sold as part of the I’On Company’s Holiday Home Site Sale.

5.  You may have heard the announcement of our new sales and marketing collaboration with William Means!  I’On Realty is very excited about this new relationship and are proud to have them working alongside us to help sell homes in I’On.

6.  Spring has returned to the Lowcountry!! Celebrate!!

Vince

FOR IMMEDIATE RELEASE
Media Contacts: Alys Campaigne, I’On Group
acampaigne@iongroup.com

843.709.6661

Heidi Stroup, William Means Real Estate

heidistroup@williammeans.com

843.577.6651

William Means to Provide Sales and Marketing Services for I’On Homes and the Coastal Living Idea Home

I’On Group advancing its pioneering placemaking

February 26, 2009 – Mt. Pleasant, SC – Today, Vincent Graham, Founder of The I’On Company, and Helen Geer, owner of William Means Real Estate, announced that I’On Realty is engaging William Means in a collaboration to enhance sales and marketing services for lot and home listings in the I’On neighborhood. I’On Realty’s new marketing relationship with William Means represents an exciting opportunity for both organizations. William Means is the exclusive affiliate of Christie’s Great Estates in the region, representing some of the area’s most beautiful, quality homes.

The arrangement will expand I’On’s exposure and quality sales representation. I’On Company will focus its energies on finishing out the final phases of the I’On neighborhood. I’On Group will remain dedicated to its core mission of planning and developing great urban neighborhoods.
I’On was one of the first neighborhoods in the nation to revive the traditional mixed use, walkable urban design. 660 of the 762 planned homes in the 243-acre neighborhood have been completed as well as numerous shops and office space, a church, Charter School, and other civic uses.  In addition to its current I’On resale portfolio, William Means will assist The I’On Company and I’On Realty with the sale of its remaining 17 lots, as well as new homes built by the members of the I’On Guild.

Vince Graham remarked, “Over the course of a decade, I’On Realty has welcomed homeowners who have shaped the neighborhood into a place of exceptional character. We’re honored to extend the reach of I’On to a broader audience with William Means – a company with deep local roots and the highest reputation for integrity and service.” 

Commenting on the opportunities ahead for William Means, Helen Geer said “We are very excited about this new sales and marketing relationship with I’On. Although we have had a presence in the neighborhood for many years, this sales and marketing arrangement with I’On Realty will allow us to connect to this celebrated neighborhood on a more personal level. Several of our agents are I’On residents with extensive sales experience and first-hand knowledge of what it means to live there. We are committed to making this new relationship successful and one that will benefit current and future residents.”

William Means Real Estate was founded in 1933 and is one of the oldest real estate firms in the region.  As a Christie’s Great Estates affiliate, William Means is able to showcase Charleston’s luxury homes through Christie’s web site, the Wall Street Journal web site, national and international publications, and the extensive network of other affiliates. This exposure – combined with the firm’s local efforts – will provide a unique platform for marketing I’On properties to the most qualified buyers around the world.

Helen Geer has over 35 years of experience in the real estate business, acting as the broker-in-charge at Williams Means Real Estate since 1993.  The firm currently has offices in the Historic District and in Mt. Pleasant.

I’On Realty was founded a decade ago at the inception of the I’On neighborhood.  As the leading company representing buyers and sellers in I’On, I’On Realty deals exclusively with the sale of I’On’s homes and homesites.  I’On Realty is also actively committed to the social and cultural enrichment of I’On and closely partnering with the I’On Trust, an organization that promotes such activities in the East Cooper area. 

Vince Graham, along with his father, Tom and brother, Geoff are the Founders and owners of The I’On Company. Vince also operates I’On Group – a development services company responsible for the development of I’On, as well as Morris Square in downtown Charleston and Mixson in the Park Circle area of North Charleston

We’ll keep you updated on the blog, but if you’re interested in tracking the home’s progress more carefully, getting directions, or learning about some of our product sponsors, check out new Coastal Living – I’On Realty website.

Coastal Living, a national lifestyle magazine celebrating life along the coast, I’On Group, and Structures Building Company celebrated the groundbreaking of the 2009  Coastal Living Idea Home last week. 

The home will be located on Jefferson Canal in I’On, and built by Structures Building Co., Charleston’s 2007 Builder of the Year.  This year’s Idea Home will feature Caribbean style architecture and a private courtyard, and will be completed and open for tours in late August through mid-October.  Touring hours will be Thursday through Saturday, 11am-5pm, and Sunday 1-5pm.  Tickets will be available for $10 on site, and at I’On Realty, with the proceeds benefiting a local charity.  The furnished home will be offered for sale, and will be the flagship home among 13 custom home offerings designed as the Courts on Jefferson Canal. 

Coastal Living Idea Homes celebrate the best in coastal home innovation, decor, and construction, and are built in coastal communities hand-selected by the magazine for environmental consciousness and sensitivity to shoreline preservation. 

This will be the second Idea Home to be built in I’On; ten years ago, Coastal Living built its first Idea Home on Sowell St.

If you’d like to track the home’s progress, learn more about the sponsors, get directions, or plan a visit, please visit the new website, dedicated to keeping you informed about the 2009 Idea Home.

We’ve all been waiting to get a look inside the beautiful, white building that’s been going up over the past year at the entrance to I’On.  Well, in just a few more days you can – the Inn at I’On will be open to the public on February 17.  Each of the seven rooms comes with luxury amenities including fireplaces, hi-def televisions, and jet soaking tubs.  Also included are wireless Internet access, a full complimentary membership to the I’On Club for the duration of your stay, and breakfast for two. 

The inn’s restaurant, Jacob’s Kitchen, will offer breakfast and dinner daily, with brunch on Saturdays and Sundays.  The menu is New South cuisine, with a focus on local ingredients.  Make sure you stop by and welcome the newest business to I’On Square!

Oh, yeah – and here’s a picture of the great painting (done by David Boatwright, the creator of Rosie on the Hominy Grill building) that’s caused such controversy in I’On over the past few months:

The primary aim of the research is to discover how places can be designed and preserved to maximize both sense of place and quality of life. The Charleston neighborhood south of Broad Street is historic; the I’On development is new but designed using traditional urban patterns and architectural styles.” The study is online at http://www.neighborhoodstudy.com/

The economic forecast also includes Columbia, Augusta, several Texas cities like Austin and El Paso, and a cluster of cities in upstate New York.  Take a look at the full list here.

Click here to read the latest.