Hello everyone and Welcome to another
episode of Selling Greenville your
favorite real estate podcast here in
Greenville, South Carolina, I'm your host
Stan McCune realtor right here in the
Greenville area of South Carolina and
you can find all of my contact
information in the show notes if you
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today I want to do a beginning of Summer
update because here we are the end of
May entering into June I think you know
for most people Memorial Day is kind of
The Unofficial start to the summer it is
that way for me now Memorial Day weekend
in Greenville this year was like really
weird
I was actually out of town for a
little bit I came back and it was like
raining and like in the 50s and I don't
ever ever remember it being like that
in the end of May normally we are like
full-blown summer mode here in
Greenville at that time of year
but nonetheless it's been seasonably
mild sorry unseasonably mild and
and that is just kind of interesting
just how that's happened I don't know
why it's happened we've had all sorts of
rain I had hail I was out of town I I
had my glass break sensor go off with
my alarm system because it thought
someone was bringing breaking in because
I was getting hail on my house I haven't
yet had a chance to check to see if I
have hail damage some of you might know
I used to be an insurance adjuster so
I'm actually qualified to to check my
own roof for hail damage
I'm pretty good at it
but nonetheless I haven't had a
chance to do that because I'm still
getting caught up
I spent two weeks out in California
and then sadly my wife's uncle passed
away right at the end of our trip so
then we had to make another trip to my
wife's family
and so I was gone for almost two and
a half weeks
and it was crazy but we had a
really great trip spent some time
seeing some national parks out in
California it's the most time by far
that I've spent in California and my
first time seeing any of those national
parks and let me just say so we
drove all the way from Vegas eventually
ending up in San Francisco
and I think I finally appreciate why
California seems to be the most
difficult state to poach people away
from to come to Greenville and I think I
finally know why like we get a lot of
people from the Northeast who come to
Greenville we get a lot of people from
Chicago area that comes to Greenville
we get a lot of people from
even from Florida people that are
getting outpriced that are are moving to
Greenville just anecdotally just my
experience
in terms of of clients that I've had
in Texas as well that's another one
but but not very many from
California and having spent you know a
couple of weeks out there I can
understand I mean that state is just
beautiful I know it's like the politics
out there I'm not even gonna say what
I hear from people but the political
situation out there
and the price of things is just
outrageous but I can understand why
people have a hard time leaving when
it's just there's just Beauty everywhere
obviously the the big cities you know
every everyone wanted everyone has
asked me what the homeless situation in
San Francisco is like and it was like
it's a big city like there's homeless
people
I've I spent a lot of time you
know 18 years of my life pretty close to
New York City and there's a lot of
homeless people in New York City as well
like it's really no different in my
opinion than San Fran granted I didn't
go to the areas where there are fentanyl
issues going on but you just know not
to go to those areas but nonetheless
I'm really getting off topic here I can
understand why people love California it
is a beautiful state if you avoid some
of those rougher areas and and most
of the state is not the rougher areas
most of the state is just beautiful
rolling Golden Hills
just absolutely incredible
what blew my mind was a small little
town Three Rivers California which
nobody's ever heard of but it's right
near Sequoia National Park which sadly
was closed but that's okay we we still
oh I don't know what my dog is freaking
out about if you hear if you hear her
barking
but we still got to
and enjoy that area and just the the
city of Three Rivers just this little
mountain town it was just gorgeous like
they had this Lake that went in
between the mountains and it was just
you know just absolutely incredible
I got a picture of it I think I
posted it on my Instagram because I was
just so blown away from it so just
amazed by it it's just not what I was
expecting
so you can look me up on Instagram I
think I'm going to be posting some more
photos from that trip I just haven't had
time to just been too busy but at
Stan McCune on Instagram if you want to
follow me on there
I'm also at Stan McCune on Facebook
I'm also the the only platform I'm
not at Stan McCune is
is YouTube
but if you search my name or you search
so in Greenville you can find this show
on there all right so that's a little
recap of what I've been doing if you
were interested
but I want to talk about just a
little personal update on what the real
estate market is doing the beginning of
the summer we didn't do our normal
Market stats look this month and
that's because I had to record all of
the episodes for the month of May
besides this one prior to going on this
trip so I did I cranked out four
episodes in the span of two days
so that you guys wouldn't miss anything
while I was traveling
so we're just going to skip the
market stats for what would have been
the month of April and then a few weeks
we'll get maze statistics but I can
still share with you kind of what I'm
seeing boots on the ground here in in
the Greenville area and just kind of
what the what the mood is in general
what I'm sensing
and here is what I'm sensing now granted
this is kind of coinciding a bit with
Memorial Day weekend but
from things that I've read and other
people I've talked to I don't think that
it's strictly a holiday related event
we are seeing things slowing down quite
a bit and
that's no surprise because mortgage
rates have crested above seven percent
for the third or depending on how you
track it fourth time the past year and
and this is the direct result of what
I'm going to call the debt ceiling
crisis we're we're still if you're
listening to this we may have already
resolved this we may have already
pushed up the debt ceiling I'm recording
this prior to the vote having taken
place on whether the debt ceiling is
going to get extended or whatever the
proper terminology is for that
but as a result of that
that indirectly caused mortgage rates
to Crest above seven percent I've even
had some people that have even backed
away from pursuing real estate until the
whole debt ceiling thing gets
resolved so multiple things have kind
of come together here the past few weeks
that have really caused a bit of a
Slowdown in terms of buyer activity
and I think we're we're seeing that
across the board like I said on a
national level I have seen people
saying the exact same thing and so the
question now is is this seven percent
above seven percent rate scenario that
we're in right now
with mortgage rates is that here to stay
or is it going to once this whole debt
ceiling situation gets gets resolved
and it looks like it will get resolved
well at that point we see it return back
to below sick but sorry below seven
percent maybe in the high sixes or maybe
mid mid sixes it seems like people
really just got squeamish once it once
it got above seven percent and decided
you know what we're just going to wait
this out and just see what happens some
people really don't think that we're
going to see it Go below seven percent
that we might actually be in a above
seven percent rate world for the next
several weeks maybe the next several
months
I'm I'm a little bit non-committal but I
tend to think it will dip at least a
little bit below seven percent
and then we could very well end up
seeing the Federal Reserve though
increase rates again at least their
federal funds rate
next month or or depending on when
you're listening to us in the month of
June a lot of people thought that they
would pause
I even heard some people say that
they thought that they would lower rates
that I can almost assure you is not
going to happen the best case scenario
is that they pause rate hikes
at least from from the standpoint of
mortgage rates that's the best case
scenario I guess you could argue whether
that's the best case scenario for the
economy
but right now there's a lot of
sentiment a lot of people thinking that
the FED is going to increase rates yet
again in the month of June maybe a
quarter percent rate hike you know go
up 25 basis points
and if that happens it's hard to know
whether that would impact mortgage rates
because a lot of these things have kind
of already been priced in and mortgage
rates are already higher than you would
expect them to be based on what the what
the FED has done
and so
long story short
we don't know but I tend to think that
mortgage rates will go back below seven
percent and I tend to think that even if
the FED does go you know does increase
their rate by 25 basis points I tend
to think that that won't have a dramatic
impact on mortgage rates but if they
keep hiking let's say we get a June hike
and then we get a July hike okay now we
we might start to see that start to
have an impact on mortgage rates almost
certainly we would
but I do think for sure that that we can
be confident that mortgage rates are not
coming down anytime soon
I'm less and less inclined to
believe that we're going to see them go
below six percent before the end of this
year
I'm starting to think that we
should just kind of expect them to be
best case scenario in the mid sixes
by the end of this year and then in 2024
we'll see what happens at that point
most likely we'll see things fall
down at that point but for right now
we are seeing an extended period of time
with rates in the sixes and potentially
the sevens and so the market is just
going to have to account for that and
there's just going to be fewer fewer
buyers out there because more people are
going to get priced out
and you know I will say this I think
this is the first time that I really
think that we could see a slight drop in
prices we might might start to see some
slight year-on-year drops and prices we
didn't see that for the month of April I
will bring this up I'm not going to go
through the market stats line by line
like I normally do but the median sales
price for the month of April was 302
500 which is 1.5 above April 2022 which
was at 298 000. so we did see both a
month on month and a year on year median
sales price increase in the greater
Greenville area per the the greater
Greenville Association of Realtors for
the month of April
but it would not Shock me if we saw a
decrease in May and or June we'll have
to see when the May Stats come out
but it'll be very interesting to see and
I'll remind you guys that
that doesn't I you don't the there's
no reason to there's really no reason to
panic for any of these things I mean I
guess if you're a seller and you only
have one property that that you're
planning to sell soon like your own
primary residence and you don't have
investment real estate you might be
freaking out a little bit but listen
We're not gonna see
at least there's no data to indicate
anytime soon that we're gonna see like
prices drop by 10 15 20 if they drop
it'll be you know less than five percent
probably one percent two percent year on
year something like that that's the kind
of thing that we could see if we see
rates stay in this seven percent range I
think it could damper buyer activity to
the point that we see a little bit of a
price decrease
but if you look historically at the
at the charts in Greenville
it is not uncommon in a normal year for
there to be a month where the
year-on-year median sales price is lower
than it was it is negative I should
say so where you have a negative
year-on-year median price point
growth and and that doesn't mean that
the line isn't trending up that doesn't
mean that for the entire year that it's
normal for prices to go down but it's
not uncommon for it to be kind of a
jagged line where the median price
point has some months where it's below
the year before but most months above
what it was the year before with the net
of the entire year being an
appreciating Market
so it's actually been more of the
anomaly that we haven't had any months
like that in recent years that we've had
appreciation every single month or at
least median price point growth every
single month going on oh I don't know
I'd have to go back and look at the at
the stats but it's been going on for a
while now
that is not the norm so you
should just be prepared for that
you will hear National media talking
about prices going down because there's
a lot of data on the national level
about that happening
and what's happening on the national
level is is a lot different than
what's happening on the local level here
in Greenville and Greenville much more
stable Market our highs aren't as high
as things are on the national level and
our lows aren't as low as what things
are like on the national level so
just be prepared for that you're
you're going to see these headlines but
they don't necessarily pertain to
Greenville but I'm saying that we may
have a few months here where we see some
some price growth not just slowing
down which it already has but actually
going into the negatives so we will
just have to have to track that now at
some point we're going to reach these
months where we saw the extreme slowdown
that happened last year when rates
started going way up so that happened in
the summer of last year so when that
happens some of these year-on-year
numbers are going to start to look
better and that's merely because
we're we're going to be comparing this
year to the the slow part of last year
so that's something to keep in mind as
well we're still comparing this year to
when the market was still very very
crazy in 2022 eventually you know once
we got into the late summer of 2022 the
market had really really slowed down we
were in a housing market recession
already by that point of last year
and so once we start comparing those
numbers things will start to balance
out a little bit
but up to this point we are we
have still seen every month that the
data has come out we have seen price
growth it's just been a lot less extreme
you know rather than 20 seeing one and a
half percent year on year something like
that and that's good that's what that's
what our Market in a lot of ways needs
now it's not good for everyone again if
you're a seller and not a buyer in this
market then yeah that's that's not
great you would rather have 20
year-on-year appreciation right
but for the most part the market
needs needed it to slow down
the the problem is that we still
inventory has ticked up a bit and I do
want to discuss that
let me pull up the market stats here
again where did I put them here we go
and you're not seeing if you're on
YouTube I'm not going to screen share
this time
just because I'm not really looking
you know super closely at these but
new listings were down almost 10 year on
year
and the let's see here
I said I wasn't gonna go go through all
these but I look at this data and I just
want to talk about it the percent of
list price received jumped up to 98.7
that was a little surprising I think we
might see that drop a little bit but
the inventory for of homes was at its
highest point that it's been since
2020. so the total inventory was at 3
601 which was 125 percent increase year
on year so that that's a big number but
now that's still below the pre-pandemic
Norms
but I have seen recently that
inventory levels are starting to to
increase just a little bit here in in
in our Market
and so again this is all kind of
confirming what I'm sensing which is
that buyer activity has slowed down a
bit and I really think that the seven
percent rate I think that that just
caused a lot of people to say you know
what I'm putting on the brakes I'm
suspending my my activity for now I'm
just gonna kind of wait this out and see
exactly what happens
and you know at some point what the
FED is doing is going to cause more
people to lose their jobs a lot of
people think that the FED is trying to
orchestrate a job loss recession I am in
that camp that that's what I believe the
FED is trying to do we have other
recession markers but one of them that
has not been a recession marker up to
this point has been the number of
jobless claims and we just had a bunch
of data the reason why people think that
that the FED might hike again in the
month of June
is that we just had a bunch of data that
came out that showed that the that
inflation and the economy and and jobs
and wage growth all of these things are
still going at a at a faster and more
hotter that's a terminology that they
like to use going at a hotter Pace we're
seeing we're still seeing not enough
jobless claims we're still seeing wage
growth going higher than we would
expect it to
and normally you know 99 of the time
people would be really happy about that
oh okay
the economy's strong not very many
people are claiming that they're jobless
wages are going up people are
hiring you know all of these things
would usually be positive but we're in
this Bizarro world right now where
because inflation is still running hot
the FED has targeted the job jobless
claims number and and apparently what
what someone that I trust
um has said that they believe I believe
it's that that the FED wants to to
have I believe the jobless claims
number to be 323 000.
I believe I'd have to go back and
look at that
but anyway we're nowhere near that so
there's a lot of questions on whether
the FED feels like they've done enough
and they just need to kind of wait it
out and just kind of let what they've
done up to this point run its course
and take effect
because the effect tends to lag behind
what they do
but a lot of people are just like you
know what based on what the FED has been
saying and based on all these numbers
that have just come out they're going to
keep being aggressive and just going to
keep raising rates and my
understanding is that the situation in
Europe and and parts of Asia is even
kind of more extreme that actually it's
it's better in the U.S from the
standpoint of inflation some of these
other things than it isn't in some of
these other countries so we we live in
in very strange times
but the the long story short of it is
things are slowing down now for me
personally
I still feel very busy
but I always feel very busy part
of this is you know I just got back from
vacation so I've just got so much you
know that I need to be doing and even
though I I really prepared for it and I
set up all my clients with with people
that potentially that that could
have assist them if need be or if I had
someone reach out to me I had processes
in place whereby I could make sure that
that they could be helped in my absence
but I still as with anyone I still have
a backlog of things to do coming back
from vacation but I'm just looking ahead
at even you know these next few months
listings I've got coming up buyer
clients I know that are going to be
coming on the market and I'm just like
you know what for me personally I'm
going to continue to stay busy and
I'm grateful for that
but I need to make sure that that stays
true and so that's where you guys come
into play and so I appreciate any
referrals that I get from you guys it
really means the world to me and a lot
of you guys have have been great
Advocates for me for the show and so
I really appreciate that I'm gonna wrap
the show up now
I don't I I
I just said about how I'm busy and yeah
I I need to I need to get to some
other things
but I hope you guys enjoyed the show
as I said please any of your real estate
needs or your friends or your family
members real estate needs please keep me
in mind my contact information is in the
show notes please reach out to me for
any of that please like review subscribe
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there it's not notifying me of
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interact with this content as much as
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many people as possible I appreciate you
guys listening and we will talk again
next time
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