Mount Pleasant, South Carolina is often referred to as the best real estate market in the Charleston area. Home sales in Mt Pleasant in 2009 outperformed all other Charleston-area real estate markets in terms of sales volume and median price. However, Mt Pleasant home prices have declined more than most areas over the past 12 months. Despite Mt Pleasant’s advantages over other local real estate markets, such as having the lowest crime rates and best public schools in Charleston County, home prices fell because first-time homebuyers accounted for the majority of home sales in 2009.

The new homebuyer tax credit should boost Mount Pleasant home sales in 2010 with its higher income limits for first-time homebuyers and the new provision extending a $6,500 tax credit to existing homeowners .

Mount Pleasant has had substantially more homes for sale than any other Charleston-area real estate market for years. Single-family homes account for approximately two-thirds of all Mt Pleasant homes for sale. The first-time homebuyer tax credit passed in February 2008 helped reduce the supply of condos and townhomes for sale in Mt Pleasant, but single-family homes are simply worth more than most first-time homebuyers time they can pay. Look at all of the current Mount Pleasant homes for sale on the MLS and you’ll see that the median listing price is over $450,000. Few first time homebuyers have an income that can afford to purchase homes priced over $300,000 and qualify for an 80% home mortgage! Extending the tax credit to qualified existing owners should encourage sellers to lower their list price and take advantage of the tax incentive while it is available.

Homebuyer Tax Credits expire April 30, 2010. Record home inventory, combined with historically low interest rates and tax incentives, should benefit Mount Pleasant for years to come.