Mt. Pleasant real estate thoughts on a new development (Charleston: for sale, real estate market)

[Besa1]

I have received awesome guidance from this forum and I am hoping to get your thoughts once again.

There is a new development of approx 30 houses being built east of Riffle Range Road backing up to the marsh and South of Bowman called Heirloom Landing.

The homes plus land will cost between 1,300,000 to over 2,000,000. Do you think spending 2,000,000 ish in that area is crazy? I am new to the area and don't want to make a stupid decision. I guess I am hesitant because I am unsure if that is a prime area like (old village) and also given the real estate market we are in is it a horrible time to buy (unsure if the housing market is going to come crashing down).

Thanks in advance for your feedback!

[soulsea]

Well, it's not crazy for 2021 pricing, which is probably when they were priced by the builder to make the numbers work for them.

These days one can make the argument that they are overpriced given the economic trajectory and interest rates. But every real estate agent I know tells me that at least so far, only the mid to lower priced homes are affected by current market conditions and that the top end homes are as in high demand as ever because most buyers at that level are cash buyers and just want to move to Charleston from northern parts of the country no matter what. As a data point, a couple of weeks ago I looked in I'on and Olde Park and there was only one home for sale. You could wait and bet that the top end market will cool down in the next few months or you could jump on the train now ... no one knows what will happen. The only thing I can say for sure is that MP isn't going to become less desirable any time soon so if you're in it for the long run buy the home that moves you and you'll be fine.

[ayoskillz]

Originally Posted by soulsea

Well, it's not crazy for 2021 pricing, which is probably when they were priced by the builder to make the numbers work for them.

These days one can make the argument that they are overpriced given the economic trajectory and interest rates. But every real estate agent I know tells me that at least so far, only the mid to lower priced homes are affected by current market conditions and that the top end homes are as in high demand as ever because most buyers at that level are cash buyers and just want to move to Charleston from northern parts of the country no matter what. As a data point, a couple of weeks ago I looked in I'on and Olde Park and there was only one home for sale. You could wait and bet that the top end market will cool down in the next few months or you could jump on the train now ... no one knows what will happen. The only thing I can say for sure is that MP isn't going to become less desirable any time soon so if you're in it for the long run buy the home that moves you and you'll be fine.

I don't know what agents you talk to. I dont want to get into agent talk because they are some good ones out there that have alot of knowledge and some that think they do..

Decreases start with upper end homes then trickle down to mid to lower end homes. As for the rest of your points you are correct. I think the economy is more important than intrest rates. If the economy is doing good then rates can he high and there is money still in the system.
If the economy is bad rates can be low and people still won't buy because everyone is penny watching.

[912904]

Originally Posted by Besa1

I have received awesome guidance from this forum and I am hoping to get your thoughts once again.

There is a new development of approx 30 houses being built east of Riffle Range Road backing up to the marsh and South of Bowman called Heirloom Landing.

The homes plus land will cost between 1,300,000 to over 2,000,000. Do you think spending 2,000,000 ish in that area is crazy? I am new to the area and don't want to make a stupid decision. I guess I am hesitant because I am unsure if that is a prime area like (old village) and also given the real estate market we are in is it a horrible time to buy (unsure if the housing market is going to come crashing down).

Thanks in advance for your feedback!

What does your realtor say?

If you're willing (or can) spend 2m on a home, I'd hope you have some knowledge about finance and economics. If so, you'll know that rates are still on the low end when comparing them over time. Rates may fall, but they aren't going back down to the 3-4% range anytime soon (and the kind of loan you'd need or this sized purchase may/should be higher).

High income earners don't rely on message boards to make decisions.

[SkyNSea55]

As far as the area, I just drove through yesterday to check how things were going. You would probably get some good breezes off the marsh back there. Looks like it will be a nice neighborhood tucked away from things, but still convenient south of the Connector.
To purchase new in the Old Village would cost a bit more and would be difficult to find. With today’s pricing, I believe this neighborhood is in range for what it offers, at least for today. As for the future, it’s anyone’s guess.

[LocalHero]

If you're buying as your residence and expecting to stay in your home for some years, the short term price fluctuations should have little impact on your decisions. If you're counting on the home partly as a shorter term investment, then next year's prices are more important. This is a longstanding, common sense maxim in real estate.

By nearly all measures it looks like we're headed for some drop in real estate prices in 2023. The big questions are how much and for how long. Wells Fargo just predicted a downturn in housing prices but they're only calling for 5.5% in 2023 and expecting a recovery in 2024 to more normal appreciation:

"Wells Fargo predicts that national home prices will sink 5.5% next year. But it will vary significantly by market.

"Markets where home prices shot the highest are now vulnerable to a disproportionate swing to the downside, notably in previously white-hot markets in the Mountain West which saw an influx of remote workers at the onset of the pandemic. Home prices in desirable locations with comparatively tighter supply are likely to hold up much better," write Wells Fargo researchers.

Unlike the six-year housing downturn that started in 2006, Wells Fargo predicts this ongoing housing downturn should fizzle out heading into 2024. In fact, Wells Fargo predicts in 2024 that housing GDP will rise 5.1% while U.S. home prices rebound by 3.1%."
(emphasis mine)

https://www.yahoo.com/video/still-ea...083905781.html

Now if you think of Charleston/Mt Pleasant as a "white-hot market" you might expect a larger price drop but I personally think demand is likely to add support to the still-hot markets. In 2008 when housing prices experienced a much larger drop, Mt Pleasant showed a bit more resilience than other "hot" areas that tended to be a lower price point.

Location-wise Heirloom Landing is hard to beat for a new home in Mt Pleasant. It isn't going to have the panache of Old Village but it will have all the modern conveniences and structural advantages of a new home. I can only imagine it will hold it's value as much as anything does if not more so.