June is here and it’s time to hit the pool or the beach! Spoleto and Piccolo Spoleto have started and will be around Charleston until June 12th with an amazing array of events at more venues than you can imagine. Music on the Green happens every Friday evening at Freshfields at Kiawah this summer. The Charleston County Parks have released their waterpark schedules, jump on in and cool off! Reggae Nights are at James Island County Park on June 3rd and June 24th. Starlight Yoga is at the Folly Beach County Park on June 2nd and 30th. It’s time to get out and enjoy our great city! Here is your June calendar of events:
25: Pop-up Market at Firefly, Firefly Distillery
The Charleston economy is doing great. Trident Technical College took the lead on a grant to form a consortium that its members hope will create the next generation of innovation and talent for the electric vehicle industry. The consortium will receive $2.83M from the National Science Foundation to fund the project. Ladson’s Mercedes Benz plant and a vegetable cannery in Effingham have struck up a partnership that will make the plant the first renewable natural gas project in the state. Frampton Construction Company has completed work on a 430k sq ft distribution center at the Charleston Trade Center in Summerville. This marks the completion of the Charleston Trade Center. Venture fund group, Good Growth Capital announced it has closed its oversubscribed third fund at $102M. The new fund is the largest in state history!
Of course, our real estate market is doing fantastic. However, we are beginning to sense a possible shift in the housing market. Mortgage rates have risen to around 5% and the forecast seems to show that will continue. Remember that a 1% increase in mortgage rates reduces a buyer’s buying power by around 10% to keep the same monthly payment. In Charleston, we have seen active inventory rise from about 1,000 active listings just 7 weeks ago to a current level around 1,600. That’s a quick 60% rise in a short time. Our sales are good, but we are not keeping up with the records of the last couple of years. We are currently on a pace with the market in 2015 or 2016. One reason has been the low inventory, but mortgage rates may also be having a dampening effect. Local sales prices are still very strong, but this will bear watching. Those that need to get a loan have had a big change, around 20%, in their buying power. Homes that were bought 3 years ago for $500k at 3% are now trying to sell for $800k or more at a 5-6% rate. That’s about a $2k per month difference in monthly mortgage payments if both put 20% down (and an extra $60k down payment). We will make sure to keep you aware of what we are seeing!
We are committed to providing our clients with an unparalleled level of service. We strive to have you feel and experience our commitment to you all while helping accomplish your real estate goals. That is truly what it is all about! Please reach out to us if you have any questions or if you are thinking of buying, investing, or selling a home!
