Comments for Charleston InsideOut

Comment on Greg Rand recommends Charleston on FOX “Where to Invest Now” – I say “What???” by clasbyfx

clasbyfx — Thu, 17 May 2012 21:26:19 +0000

Kristin, Wagener Terrace still has a few fixer-uppers. I bought 3 Riverside for $170K in 2004. It may be a deal the asking was $250K…. Thanks!

Comment on Why Charleston Ain't Cheap by Greg Rand recommends Charleston on FOX “Where to Invest Now” – I say “What???” | Charleston InsideOut

Thu, 17 May 2012 15:44:48 +0000

[...] a reminder, check out my post from more than three years ago called Why Charleston Ain’t Cheap. Skip to 1:40 in the video below for Mr. Rand’s Charleston [...]

Comment on Update: Anson House Condo Auctions by chrislovessushi

chrislovessushi — Sun, 13 May 2012 08:35:59 +0000

Really enjoyed the article and responses!
Charleston Dream House Blog

Comment on Update: Anson House Condo Auctions by chasinsideout

chasinsideout — Tue, 01 May 2012 14:26:13 +0000

@schughes Sean thanks for your great analogy! Here’s where the disconnect is, and why the sellers must be having difficulty wrapping their mental arms around lower prices. There ARE luxury condos selling in Charleston. Since the beginning of the year, these three have gone – each no larger than the average Anson House, and saddled with $1500+/month in Association dues. 36 PRIOLEAU ST, #O – $1,625,000, 32 PRIOLEAU ST, #P – $1,808,000, and 18 BROAD ST, #701A – $2,300,000. Since January of 2010, there have been 12 $1M+ condo sales total – 6 in Vendue Range, 2 at Fort Sumter House, 2 at the People’s Building. The predominant feature of all of these $1M+ condos is VIEWS, and a central location. If you are a bit further out, you better have some amenities like the pool at Fort Sumter house. Unfortunately, the Anson House is lacking in both of those. The views are mostly peek-through (and about to change significantly on half of them), and the only amenity is a doorman.

Comment on Update: Anson House Condo Auctions by schughes

schughes — Tue, 01 May 2012 13:20:13 +0000

I’m starting to notice a trend of thinking in our society that is disturbing. I first noticed it with college graduates, but I believe it applies here as well. When the recession hit and people were graduating without jobs lined up, many took whatever they could get and kept going until they could get into something they wanted. However a good portion of those graduates felt they needed a certain level of job in order to justify how they spent their recent past and their recently departed college funds/loans. Unfortunately, many of those same people have continued to wait in vain due to two important factors: the level of market demand for them and the continuous replenishment of supply. This thinking is that if I wait long enough, I can cover my losses and get to where I need to be. Unfortunately this line of thought tends to ignore carrying costs, ongoing expenses, and constant new additions to the supply line.

The past several years the level of market demand and the specific types of demand have changed, not unlike the real estate market. Once upon a time, your typical non-technical or non-science major could line up an acceptable job upon completion of the degree with little issue. As with all things on this Earth, the only constants are the progression of time and change. This is no longer the case and for a plethora of reasons, but those do not matter here. They do not matter because the only thing that does matter is completing the sale, the offer and acceptance of a job. What is true though is that there is a lot of supply to burn through and because of that prices have come down (wages) to meet smaller demand, thus forming the current market. The reasons are irrelevant because they are not fleeting. In addition, every 6 months a new batch of supply hits the market, without any corresponding increase in demand. The image of a partially clogged drain that causes a sink to back up over time comes to mind.

The exact same goes for the real estate market and this project is an excellent example. Once upon a time, these condos would’ve sold well because people could get access to money easily, the prevailing thought was it can only go up in value, and there will always be a market at this level. I’ll say it again, as with all things on this Earth, the only constants are the progression of time and change. The reasons for the change are numerous as well, but the reasons do not matter because they too are not fleeting. The only thing that matters is that there are no longer the market or the able, ready and willing buyers to sell these condos, especially at anything remotely resembling the list price. In addition, supply in continuing to pile up between foreclosures, regular/normal sales, new projects, and other existing projects. It is anorther clogged drain. Their failure to adjust prices to reflect increased supply and much lower demand is a mistake and a big one at that if they have any pressure to get these off their books any time in the next several years.

As I said yesterday, good luck to them. They will need it if they can’t see and comprehend the environment around them. Supply and demand meet to form the market, you can either address that or look incompetant chasing something that no longer exists.

Comment on Update: Anson House Condo Auctions by chasinsideout

chasinsideout — Tue, 01 May 2012 00:17:40 +0000

@roskilan You are dead on with your perspective. It’s embarrassing that these buyers, making reasonable bids given market conditions, left empty-handed. And the fallout from this will be much greater than anyone knows, as there will be a negative domino effect on A. Other projects in the works and B. Those current owners who hope to refinance, or finally have some relief.

Comment on Update: Anson House Condo Auctions by roskilan

roskilan — Mon, 30 Apr 2012 23:31:09 +0000

There are also only so many people that can buy properties with NO contingencies, completely as is, AND close within 30 days. With these conditions, it would seem reasonable to expect that one might pay slightly below market … which if you take the “winning” bids, add on the 10% buyers commission, is pretty much where the bids came in. The auctioneer said the bidders were being unreasonable and that these were 2-3 million dollar condos…perhaps in another day and time, not today. Indeed, in today’s market what the legacy asking price of an overly exuberant developer is frankly irrelevant.

After the announcement that the “winning” bids were not acceptable, rather than negotiate, the room simply cleared out. It was all quite surreal. The lesson: do not waste your time again at auctions that are not “absolute” or at least have a reserve price posted. Otherwise, why bother openly bidding against others when you can simply make an offer directly.

You are right that the owners will be sitting on these properties for some time.

Comment on Anson House Condo Auctions April 30 – A heads up! by Kristin B. Walker

Kristin B. Walker — Mon, 30 Apr 2012 22:33:13 +0000

I am sure the National Auction Group did the best they could do given the situation with completely unrealistic sellers. I’d be furious if I had driven in from out of town. Stay tuned for my update post.

Comment on Anson House Condo Auctions April 30 – A heads up! by roskilan

roskilan — Mon, 30 Apr 2012 22:16:31 +0000

What a disappointment… quite the unprofessional auction IMO

Comment on About Me by s50babee

s50babee — Thu, 26 Apr 2012 11:55:49 +0000

Kristin…I talked to you last week regarding looking at condo in downtown Charleston and you were going to send me a few ideas as to what I may want to look at. We are meeting May 6th to look,you send me some to look at online.