May 2010 Charleston Market Report

www.charlestonmarketreport.
com
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
William Arthur Ward
May 2010 Issue

In This Issue
Cartoons
Mr. Gordon Gekko Economy You Still Have Credit Cancer And It Has Gotten Worse!
Charleston Real Estate
www.charlestonmarketreport.com
New BP Logos
The Impact of Oil on Real Estate?
BP Plc’s oil spill may drive down the Gulf Coast’s shore-area property values by 10 percent for at least three years,
according to CoStar Group Inc.
Losses may total $4.3 billion along the 600-mile (966- kilometer) stretch from the Louisiana bayous to Clearwater,
Florida, the property-information service estimates.
Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=aEFd_tEj12BI
This article takes place three years after the original article was written in June 2007. The original article was titled:
“Mr. Gordon Gekko Economy You Have Credit Cancer And It Is Spreading!”
http://trendocracy.blogspot.com/2010/05/2007-quarterly-charleston-market.html
Mr. Gordon Gekko Economy You Still Have Credit Cancer And It Has Gotten Worse!
The following conversation takes place between our US "Gordon Gekko" Economy (GGE) and a doctor (Doc)
who specializes in patients with Credit Cancer.
Doc: GGE it is hard to believe it has been 3 years since our last conversation. After looking you over and putting
you through numerous stress tests I have to say all the stimulus chemotherapy we have injected you with did not
really cure anything. The stimulus chemo has bought you more time but the relapse after all the stimulus chemo
wears off could be worse than the conditions you experienced in 2007-08. When you have credit cancer there are
numerous tough decisions that must be made in order for a real recovery and we failed in that regard.
GGE: Doc I appreciate and share your concerns on my health. The initial round of stimulus chemo worked good for
some banks, the stock market and others but I still do not feel right. Not only am I concerned about the credit cancer
but I also am worried about this tripolar disorder (TD) as well. It is very difficult to have credit cancer and a tripolar
disorder at the same time. I am really a basket case right now! Obviously the credit cancer is a direct cause of the TD
and I have no idea what “personality” is going to show up from one day to the next. It is driving my friends at the
stock market, government, banks and small businesses crazy and makes doing business with me very difficult.
Source: www.fmxconnect.com
Doc: GGE I appreciate your honesty and frustration. We do not have an overnight cure for all of these diseases you
are experiencing right now. We thought an aggressive dose of stimulus chemo would do the trick but they obviously
underestimated how bad the credit cancer was at that time. It is also insane to have the same assholes that helped you
become sick with credit cancer to be given the task to help you get better. Talk about insanity and poor strategic
planning!
GGE: You are absolutely correct Doc. Let me ask you what your opinion is of my current condition and where do
you think the credit cancer has spread the worst.
Doc: GGE, that is a great question. The root of your credit cancer was a real estate bubble created via financial
engineering with the cooperation of certain Wall Street firms, The Fed and the government. So let’s take a look at
how real estate has responded to the stimulus chemo that was injected back in 2008 in the form of tax credits, TARP,
HAMP and other alphabet soup programs funded by the taxpayer. There is not any good news on this front so please
do not get more depressed than you already are. You definitely looked to be improving for a little while but we are
completely aware that this was a normal reaction to the government manipulating a free market economy which can
distort the impact of supply and demand.
Purchase applications are now almost 40 percent below their level four weeks ago, while the refinance share, at
74 percent, is at its highest level since December," said Michael Fratantoni, MBA's Vice President of Research and
Economics.
The Mortgage Bankers Association application survey covers over 50% of all US residential mortgage loan
applications taken by mortgage bankers, commercial banks, and thrifts.
The seasonally adjusted Purchase Index decreased 4.1 percent from one week earlier. The Purchase Index decreased
for the fourth consecutive week and is currently at the lowest level since April 1997. The unadjusted Purchase Index
decreased 5.2 percent compared with the previous week and was 16.8 percent lower than the same week one year ago.
The four week moving average is down 12.1 percent for the seasonally adjusted Purchase Index.
That chart doesn't really put things in the proper perspective, but this one does.
The chart below represents the month over month change of the 20 city home price index, not seasonally adjusted.
The most recent months of upward price movement: May, June, July, August, and September 2009.
In March, 13 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices and both monthly composites were
down although the two composites and 10 MSAs showed year-over-year gains. Housing prices rebounded from crisis
lows, but recently have seen renewed weakness as tax incentives are ending and foreclosures are climbing.
Looking at the monthly statistics, 13 of the 20 metro areas showed a decline in March compared to February. Boston
was flat. Eight MSAs posted new index lows in March – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, New York,
Portland and Tampa. Las Vegas and Phoenix have peak-to-current declines of 56.3 and 51.8%, respectively. On a
more optimistic note, Los Angeles, Minneapolis, San Diego and San Francisco have shown recovery from recent lows
of +7.2%, +7.4%, +10.9%, and +16.2%, respectively. San Diego, in particular, has stood out with 11 consecutive
months of increasing home prices.
David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s says:
“The housing market may be in better shape than this time last year; but, when you look at recent trends there are
signs of some renewed weakening in home prices....In the past several months we have seen some relatively weak
reports across many of the markets we cover."
“While year-over-year results for the National Composite, 18 of the 20 MSAs and the two Composites improved, the
most recent monthly data are not as encouraging. It is especially disappointing that the improvement we saw in sales
and starts in March did not find its way to home prices. Now that the tax incentive ended on April 30th, we don’t
expect to see a boost in relative demand.”
The big question everyone is asking: The Home Buyer Tax Credit Has Expired. Will Home Sales Improve,
Contract, or Go Sideways?
Notice that the expiration of the extended credit failed to match the momentum generated by the original credit. This
implies a portion of normally seasonally supportive homebuyer demand was stolen by first time homebuyers when the
original tax credit expired at the end of November 2009.
Notice that the expiration of the extended credit failed to match the momentum generated by the original credit. This
implies a portion of normally seasonally supportive homebuyer demand was stolen by first time homebuyers
when the original tax credit expried at the end of November 2009.
Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which
represents an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March.
Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in
July 2008.
Lawrence “The Dipshit” Yun says:

“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price
correction appears essentially over....a return to old-fashioned responsible lending and buying will help the housing
market avoid disruptive and painful bubble-bust cycles.”
A couple of charts that show there is no housing recovery at the current time.
Source: www.doctorhousingbubble.com
Chart #1 – Housing Starts

* We are 66% below the 2006 peak.
Chart #2 – Single Family Home Sales

* The recent jump is a direct result of the tax credit which ended on April 30th.
Chart #3 – Household Debt Service
Chart #4 – Texas Ratio at Big Banks
Source: BankRegdata
The Texas Ratio shows us that the too big to fail banks still have a large amount of toxic waste on their balance
sheets. The Texas Ratio is also very high for many other regional and community banks all over the U.S.
How is this calculated?
(Non performing loans + Real estate owned) / (Tangible common equity capital and loan loss reserves)
As you can see from the above charts, many of the biggest banks have large amounts of bank owned property and non
performing loans. This measure shows us that banks are going to be facing years to toxic loans until they can
adequately gut their balance sheet. Since banks wouldn’t be standing if it weren’t for taxpayer dollars, that means we
are all on the hook for these massive losses. These ratios tell us that real estate is not even close to recovering.
Chart #5 – Charleston House Price Index
* Not a big enough correction IMO.
Chart #6 – Construction Spending

* With all of the existing and shadow inventory, foreclosures and short sales do we really need to build any new
homes right now?
Chart #7 – Pending Home Sales
This chart is an anomaly. In fact, this recent jump in home sales is all thanks to the tax credit. That is gone and leads
us into the next chart which shows the next trend.
Chart #8 – Mortgage Applications

* Mortgage applications have collapsed.
Chart #9 – Nationwide Foreclosures

Contrary to what we hear, foreclosures are still at record levels. We are on pace to seeing 3.5 to 4 million foreclosure
filings in 2010. And this is good news how? Now we are seeing foreclosures dominate prime markets just like we
saw in toxic mortgage markets a few years ago. FHA insured loan defaults are at record highs and Fannie Mae and
Freddie Mac have quarterly billion dollar losses as if this were a common theme. Until we see foreclosure filings dip
to the 100,000 to 150,000 range per month, any housing recovery talk is nonsense.
Chart #10 – Homeowner Equity
This chart tells it all. Homeowners are tapped out. Keep in mind the above chart also includes the one-third of
homeowners that actually own their homes free and clear. So the reality is, those that own a home with a mortgage
have much lower equity than the current headline. With one third of mortgage holders underwater, there is little
HELOC and home equity loans to be tapped out which supported our economy for the entire bubble decade.
The above charts don’t show any signs of a housing recovery. We are a long way from any recovery.
Source: Calculated Risk – www.calculatedrisk.com
GGE: Wow Doc you make an excellent case that I truly have not recovered! All this data and your analysis are
making me depressed!
Doc: Well GGE you actually are depressed right now. You are in the Depression/Deflation stage of your Tripolar
Disorder (TP) if you were not aware. This has gotten worse because now the entire world is taking part in the
deleveraging cycle cause by real estate and easy credit.
According to William Buckler, the Global Financial Crisis can be broken into three stages. In the first stage (from
2007 until the Lehman bankruptcy in September 2008), the government said we were having a glitch in the banking
system. There was also some debate about new money, with ideas about ending the U.S. dollar’s role as the world’s
reserve currency.
In the fall of 2008, the U.S. government refused to bail out Lehman. It went under and so did Bear Stearns, another
major investment bank. As a result, the U.S. banking system practically shutdown. This leads to the second stage of
the crisis in which the U.S. government immediately came to the rescue with an open checkbook to bailout the
banking industry.
We are now in the third stage—a sovereign debt crisis. This is where governments go broke. What’s interesting is
that U.S. rating agencies lowered the rating of the debt of the PIIGS nations (Portugal, Ireland, Italy, Greece, and
Spain), which caused an immediate crisis. The situation in the U.S. is not much better, but the rating agencies are
U.S. based and they wouldn’t dare lower the rating on U.S. debt, would they? By the way, the Euro was the number
one challenger to the supremacy of the U.S. dollar, but now the European Union is in trouble and people aren’t
talking about that anymore.
Europe’s Web of Debt (PIIGS)
Doc: GGE another example of you being Depressed/Deflationary right now is the chart of the US Dollar below.
Investors are looking for places to park money and since the USD is the primary currency of the world many of these
investors feel comfortable parking their cash in USD. Keep in mind that our currency has taken a beating over the
years but this a trend that has been consistent when Deflation rears its ugly head.
The USD has been getting stronger because of deflationary fears and credit/debt issues around the globe. The same
thing happened with the USD from Mar 2008 -2009 where the USD increased by approx 26%. The second liquidity
crisis in Europe has created a mad dash into dollars again which has caused the USD to increase by 16% at the present
time. Now investors are so spooked about almost all currencies there is more money than ever looking for a place to
hide and just be safe. This is a major reason gold has received a bunch of attention and is hitting new highs. What is
funny to me is that the dollar is nothing more than 3 ply toilet paper versus the Euro which is now 1 ply. The roles
were reversed not to long ago. This just shows the weakness and lack of confidence in two MAJOR currencies. This
is what happens when economies are built on a Ponzi strategy.
Deflationary Periods created by
debt/liquidity issues.
GGE: That makes sense. Do you see any other symptoms related to my Depression/Deflation?
Doc: Yes I do. Your M3 is falling at a rapid pace. It has actually been dropping for a while. For a real detailed
technical explanation of it you can take a look at the link below. Notice M3 begins to collapse in 08 before
the Lehman failure and when Wall St. went "loco." I do not think this mean hyperinflation soon but others do. Time
will tell.
http://www.shadowstats.com/article/money-supply
The decline in M3 is a direct result of the world having credit/debt cancer. Money is being pulled out of money
market accounts, banks etc. because there is fear and lack of trust in currencies around the world right now after the
credit meltdown in 2008 and now Greece/Euro and who knows next.
So the big money is moving out of fiat into tangible assets such as gold, silver, IYR Real Estate ETF (since 09 believe
it or not) and now some fixed income recently. This is a direct result of fear and fiscal insanity that has been building
for a while. It is a very difficult environment to park money when you have lots of it during a debt crisis.
Read what Bud Conrad from Casey Research has to say about M3.
Recently, an analysis showing M-3 falling steeply has been making the rounds.
First, to state the obvious, the monetary aggregates are not growing, because we are in serious economic slowdown.
The biggest component of lending is in the private sector and was mortgage lending. That has dropped back with
consumers more fearful of borrowing and banks requiring higher standards for making loans. Job losses and defaults
keep borrowing smaller.
In this recession, private debt is declining. When there is less lending, bank deposits do not grow as fast. Also with
interest rates at zero, money market funds have been in decline. Some have looked for better returns investing in
items outside the traditional categories that are collected by the money time series.
On the other side, the public deficits and the attempted Fed bailouts are trying to replace the collapse in the private
sector and are propping up the banks. So government debt is expanding rapidly.
This is the Keynesian/Friedmanite solution that is not working. The private sector is not multiplying the government
stimulus. The huge excess reserves at the Fed are the best evidence of the banks not loaning money into the system.
Banks, facing big write-downs, are not expanding their leverage and loans for fear of insolvency.
As our economy stays weak and internationally uncompetitive in basic manufacturing, the low demand for private
credit will keep monetary aggregates from expanding, and that provides cover for the politicians to continue the
spending spree that makes their lobby-supported special interests rich. ($100 B in bank bonuses still makes me
angry!)
Of course government spending and deficits don't contribute much too economic growth, so the feed back to more
stimulus programs, like Larry Summers $200 billion request, piles on the government debt.
It is the increase in government debt that worries currency holders and traders. If confidence is shaken, the vigilantes
can attack a country's debt and currency to drive the exchange value down and rates higher. That is the serial attack on
the PIIGS that the eurozone is trying to prevent after the Greek example, using the "shock and awe" of a $1 trillion
more government-initiated debt to fight back. Markets gave a day of respite to the eurozone package, but the
confidence is still shaky.
My view is that the government/central bank/monetary authority printing press will win out as it almost always has,
and that inflation is about to start in the loss of confidence in governments to keep from issuing too much money.
As a footnote, there are difficult measurement problems with the M1, M2, M3 money supply methodology, which
focuses on the aggregate liabilities of banks' balance sheets. There are many other near money measures that are not
included, that go beyond commercial bank credit.
Treasuries are not considered money, and the Fannie/Freddie debt issuance is certainly a process much like what
commercial banks do. Derivatives are a form of purchasing power that no one knows how to evaluate but certainly do
provide a measure of financial assets, and they have exploded but are not part of traditional money definition.
Ambrose Evans-Pritchard quoting Shadow Stats M3 is just one of many possible measures. That is a theoretical topic
that is hard to pin down to what is the "real" definition of money. I think the most important component of a money
system today is the CONfidence of the participants, and that is a fleeting concept to nail down.
GGE: It really saddens me that all my symptoms from the credit cancer and TP are causing so many people so much
pain. What are people supposed to do with their money during this difficult time where currencies and banks are
collapsing and stimulus money is being created out of thin air to repair government balance sheets?
Doc: The investment environment is brutal right now. One place to hide your money is Physical Gold. Do not buy
the GLD ETF because it is controlled by banks that are To Big To Fail and you can not trust the liquidity of those
investment vehicles. Besides it is cheaper to buy the physical gold and store it rather than buy the ETF. As you can
see below gold is has the potential to go much higher in this “Tripolar Disorder” environment.
http://online.wsj.com/article/SB10001424052748704792104575264863069565780.html?mod=googlenews_wsj
GGE: What about the current financial reform bill being discussed in Congress and Senate. Do you think that has a
chance to make me better?
Doc: No. It will make you worse because they are avoiding curing the main part of your cancer, Fraudey Mae and
Phoney Mac.
Dean Baker and Fusion IQ's Barry Ritholtz are convinced the government is effectively sponsoring a backdoor bailout
of the banks via the GSEs. "This is a conscious, willful decision," says Ritholtz, author of The Big Picture blog and
Bailout Nation. "Fannie And Freddie act as a conduit for taking all this junk off the banks' balance sheets."
And Congress is along for the ride, says Baker. "To some extent the wool's been pulled over their eyes but I'd just say
it's willingly. They just don't want to deal with it right now," he notes. The fear is cutting off aid to Fannie and Freddie
could kill the housing industry. In the first quarter, the government backed more than 96% of all residential
mortgages.
Whatever the reason, taxpayers will continue to pay the price. Ritholtz estimates Freddie and Fannie could easily cost
us $400 billion combined; judging by the continued carnage "maybe that's way on the low side?" he concedes.
More evidence of “Ponzinomics” by the US Goobermint. This is the same type of accounting that banks use to hide
liabilities. So Fraudey and Phoney are a conduit to take shitty debt from the banks’ books and slaps it on the
taxpayers’ books. How convenient and FRAUDULENT! This is what pisses me off about the so called housing
recovery. A large majority of housing transactions are the DIRECT result of one gigantic government subsidy. This
why we will see the so called double dip recession. Heck, I never knew we escaped the first recession, depression or
whatever you want to call it.
GGE: Doc, the past couple of years have been very traumatic for me. Refresh my memory how my condition got so
bad.
Doc: The X-Ray below says it all.
GGE: This has been a very disturbing conversation regarding my health. Is there any other advice you can give me?
Doc: Tough times are ahead but if you have faith, pray and remain positive you can survive. Do not allow all the bad
news in the Main Stream Media depress you. Each person must stay focused on what they can do to make the world a
better place. Just remember the politicos do not have the answers. The people of this great country do have the
answers and as the sheeple wake up to the fraud, racketeering and lying that is rampant among public/private
institutions and our government there will be a reorganization and correction that will make us all feel better in the
long run.
Charleston Real Estate
We've got about 2373 listings(SFD,SFA,MFS) in areas 11-78 contingent or pending with a median LIST price of
$189k. Given the MLS average to close at 95% of that number, you would expect a median closed price of about
$180k.
We've already closed about 2908 units so far this year at a median closed price of $188k.
Those 2 together will get us through June and the best half of the year with about 5000 sold units with a median
closed price of around $185k. Contingents on the hot sheet have begun to fall off their hectic March/April pace, but
continue to be above 165 units per week. From April to the first week of November of 2009, contingents were
consistently between 165-185 units per week.
2009 saw a little less than 8100 units sold with a median closed price of about $185k.
Taking all this together, it could easily be argued that 2010 numbers will be almost identical to 2009 numbers. If
anything, perhaps there will be a few more transactions and the median price maybe about the same.
We will end up with 2008, 2009, and 2010 all having somewhere in the 8000-9000 range in number of closed unit,
leaving our inventory at over 12 months. Average yearly inventory from 2001 through 2006 was about 5000 units.
We have had over 10k units of inventory for each of the last 3 years. As you all know, there is a real estate standard
that says that over 12 months of inventory will lead to double digit depreciation. 6 months of inventory is the industry
standard for a healthy balanced market.
Source: Doug Holmes – www.charlestonhoLmes.com
Residential Stats
Home Prices
Once again, the real indicator of Charleston area home price declines is the dollars paid per square foot rather than the
median and average price which is more of a reflection of higher activity levels at lower price points.
Focus on Howard’s $ Per Square Foot figures. It gives a more accurate view of price trends than median or average
sale. Prices are still falling in certain markets in the Tri-County and this trend will continue as banks unload and push
short sales/foreclosures to raise capital.
Home sales
Monthly sales are represented by the blue line for 2008, the red line for 2009 and the yellow line for 2010. The
problem with this chart is comparing anything to 2009 is easy to improve upon. 2009 was right after the Great Credit
Meltdown that occurred in Sept. 2008 so real estate sales were horrendous. The problem I have with 2010 figures is
that they have been stimulated by this bullshit tax credit. It just puts more people in homes that can not afford them.
Show me the numbers of how many people are putting 20% to buy a home in this market. I bet the percentage is
VERY low.
Inventory and Absorption rate
Inventory is represented by the red line and corresponds to the left axis; the absorption rate is represented by the blue
line and corresponds to the right axis. The spring buildup of inventory is a little higher than last year reflecting more
sellers feeling that the worst is behind us and now is a good time to put their home on the market.
The inventory in the Charleston market continues to be a problem. This market is stuck at the 10,000 – 11,000 mark
and the absorption rate has been consistently above 12 month for a long time.
Source: Howard Arnoff – www.charlestononlinehomes.com
Lowcountry MSA posts highest number of foreclosures across S.C.
Foreclosure numbers from the Charleston-North Charleston metropolitan statistical area showed the region has the
highest number of homes in distress for May compared with any other MSA in South Carolina.
With one out of every 277 homes with at least one filing against it in May, the MSA covering Charleston, Berkeley
and Dorchester counties averaged an increase of more than 82% in foreclosures filings, in year-to-year comparisons.
Statewide foreclosure numbers were up in May compared to the same month last year, but the rate of increase was
lower, year-over-year, than in April. Real estate tracking firm RealtyTrac’s monthly U.S. Foreclosure Market Report,
which came out Thursday, showed South Carolina had a 29.22% year-to-year increase in foreclosure filings for May
compared to May 2009. Last month, statewide numbers showed a 36.21% increase.
National numbers show a less than 1% increase in homes facing distress from 2009. Foreclosures were down 3.27%
from April across the U.S. Year-to-year numbers in most of South Carolina’s larger counties, aside from Greenville
County, saw significant gains.
Lowcountry
After seeing month-to-month declines in April, Berkeley, Charleston and Dorchester counties all saw increases in
monthly and yearly foreclosure numbers. RealtyTrac reported that in the Charleston-North Charleston metropolitan
statistical area, one home out of every 277 was in distress — a significant increase from the previous month, when
one out of every 412 had at least one foreclosure filing against it. The actual number of properties listed in distress for
May 2010 was 1,040 in the MSA.
Midlands
Lexington, Richland and Orangeburg counties saw increases in month-to-month foreclosure numbers, with Lexington
County posting an increase of more than 163% from April to May. RealtyTrac reported that in the Columbia
metropolitan statistical area, one home out of every 448 was in distress, significantly more than one out of every 889,
as reported the previous month. The actual number of properties listed in distress for May 2010 was 706 in the MSA.
Upstate
Anderson and Spartanburg counties saw declines in month-to-month foreclosure numbers, but Greenville County
showed an increase of more than 8%. The trend switched in year-over-year data, with Anderson and Spartanburg
showing triple-digit increases and Greenville County showing a slight decrease in distressed homes. The actual
number of properties listed in distress for May 2010 was 103 in the Anderson County MSA, with one home out of
every 809 in distress. For Greenville-Mauldin-Easley, the number was 601, with one out of every 454 with some sort
of foreclosure filing.
“The numbers in May continued and confirmed the trends we noticed in April: overall foreclosure activity leveling off
while lenders work through the backlog of distressed properties that have built up over the past 20 months,” said
RealtyTrac CEO James J. Saccacio.
Saccacio said lenders appear to be ramping up the pace on forestalled foreclosures even while the inflow of
delinquencies into the foreclosure process has slowed.
“Defaults and scheduled auctions combined increased by 28% from 2007 to 2008 and another 32% from 2008 to 2009
— creating a buildup of delayed bank repossessions,” he said.
Foreclosures for May 2010
County % %
change change
since since
Apr-10 May-09
Lowcountry
Berkeley 51.70% 93.91%
Charleston 48.68% 89.23%
Dorchester 46.55% 61.39%
Midlands
Lexington 163.49% 102.44%
Newberry -33.33% -40.00%
Orangeburg 13.16% 377.78%
Richland 67.16% -22.68%
Sumter -11.76% 1.69%
Upstate
Anderson -10.43% 255.17%
Greenville 8.46% -6.39%
Spartanburg -14.74% 219.74%
Statewide 29.22% 31.44%

National -3.27% 0.45%
Source: RealtyTrac and Charleston Regional Business Journal
New Homes
***Over 87% of all new homes closed during the first quarter were under $300,000.
Source: Charleston New Homes Snapshot – www.carolinaone.com
My trend/momentum charts have improved a great deal. However, the improvement was induced by tax credits from
the government so I do not believe these trends will hold. Time will tell.
Vital Sign Market Momentum Chart

Tri-County Existing Residential Sales Top of the real
40 estate market.
Above "0" Line: Favorable market conditions.

30
Recession NASDAQ Correction

20
Market Momentum Reading
Mar 1990- Feb 1991

May 2010 = 13
10
-10
9/11
-20
-30
Below "0" Line: Unfavorable market conditions.
-40
Dec-90
Dec-91
Dec-92
Dec-93
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Vital Sign Market Momentum Chart
New Building Permits
50
Above "0" Line: Favorable market conditions.

40
NASDAQ Correction Top of the real

30
estate market
Market Momentum Reading
9/11
20
Apr 2010 = 16
10
-10
-20
-30
-40
Below "0" Line: Unfavorable market conditions.

-50
Dec-95
Jun-96
Dec-96
Jun-97
Dec-97
Jun-98
Dec-98
Jun-99
Dec-99
Jun-00
Dec-00
Jun-01
Dec-01
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Disclaimer
The research done to gather the data in The Charleston Market Report involves examining thousands of listings. With
this much data inaccuracies will occur. Care is taken in gathering and processing the data and information within this
report is deemed reliable. IT IS NOT GUARANTEED. The real estate market is cyclical and will have its ups and
downs. Past performance cannot determine future performance. The purpose of the Charleston Market Report is to
educate you on current and consistent market conditions by reporting leading market indicators with the support of
traditional real estate data.
This information is offered with the understanding that the author is not engaged in rendering legal, tax or other
professional services. If legal, tax or other expert assistance is required, the services of a competent professional are
recommended. This is a personal newsletter reflecting the opinions of its author. It is not a production of my
employer. Statements on this site do not represent the views or policies of anyone other than myself.
Investing in real estate is not a get-rich-quick scheme nor is there any guarantee you will make a profit. Every effort
has been made to make this report as complete and accurate as possible. However, there may be mistakes. Therefore,
this report should be used only as a general guide and not as the ultimate source for making money in real estate.

May 2010 Charleston Market Report

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May 2010 Issue

Lawrence “The Dipshit” Yun says:

Chart #1 – Housing Starts

Chart #2 – Single Family Home Sales

Chart #4 – Texas Ratio at Big Banks

How is this calculated?

Chart #6 – Construction Spending

Chart #8 – Mortgage Applications

Chart #9 – Nationwide Foreclosures

Source: Calculated Risk – www.calculatedrisk.com

Doc: The X-Ray below says it all.

Statewide 29.22% 31.44%

Source: RealtyTrac and Charleston Regional Business Journal

Vital Sign Market Momentum Chart

Above "0" Line: Favorable market conditions.

Recession NASDAQ Correction

Mar 1990- Feb 1991

Above "0" Line: Favorable market conditions.

NASDAQ Correction Top of the real

Below "0" Line: Unfavorable market conditions.

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