Hilton Head Real Estate Market Report August 2014

12
Monthly Indicators August 2014 Quick Facts A RESEARCH TOOL PROVIDED BY THE HILTON HEAD AREA ASSOCIATION OF REALTORS® - 1.3% Change in Median Sales Price Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline. This is not uncommon in a balanced market, but it's been so long since we've seen one that we're watching it with perhaps too much trepidation. Metrics to watch include inventory and prices, but also days on market, months' supply and percent of list price received at sale Declines in pending and - 1.3% Change in Inventory - 9.9% Change in Closed Sales 2 3 4 5 6 7 8 9 10 11 12 Click on desired metric to jump to that page. months supply and percent of list price received at sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand. New Listings in the Hilton Head region decreased 19.7 percent to 363. Pending Sales were down 7.2 percent to 283. Inventory levels fell 1.3 percent to 2,602 units. Prices were fairly stable. The Median Sales Price decreased 1.3 percent to $257,458. Days on Market was up 13.0 percent to 126 days. Sellers were encouraged as Months Supply of Inventory was down 0.2 percent to 8.5 months. Sustained job growth, lower mortgage rates and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it's encouraging to see second quarter GDP growth revised upwards to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues. Months Supply of Inventory Inventory of Homes for Sale Housing Affordability Index Percent of List Price Received Average Sales Price Median Sales Price Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | 1 Closed Sales Pending Sales New Listings Market Overview Days On Market Until Sale

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Check out the real estate market in one of the most sought after resort destinations. See why now is a great time to buy.

Transcript of Hilton Head Real Estate Market Report August 2014

Page 1: Hilton Head Real Estate Market Report August 2014

Monthly Indicators

August 2014 Quick Facts

A RESEARCH TOOL PROVIDED BY THE HILTON HEAD AREA ASSOCIATION OF REALTORS®

- 1.3%

Change inMedian Sales Price

Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline. This is not uncommon in a balanced market, but it's been so long since we've seen one that we're watching it with perhaps too much trepidation. Metrics to watch include inventory and prices, but also days on market, months' supply and percent of list price received at sale Declines in pending and

- 1.3%

Change inInventory

- 9.9%

Change inClosed Sales

23456789

101112

Click on desired metric to jump to that page.

months supply and percent of list price received at sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand.

New Listings in the Hilton Head region decreased 19.7 percent to 363. Pending Sales were down 7.2 percent to 283. Inventory levels fell 1.3 percent to 2,602 units.

Prices were fairly stable. The Median Sales Price decreased 1.3 percent to $257,458. Days on Market was up 13.0 percent to 126 days. Sellers were encouraged as Months Supply of Inventory was down 0.2 percent to 8.5 months.

Sustained job growth, lower mortgage rates and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it's encouraging to see second quarter GDP growth revised upwards to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues. Months Supply of Inventory

Inventory of Homes for SaleHousing Affordability IndexPercent of List Price ReceivedAverage Sales PriceMedian Sales Price

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | 1

Closed SalesPending SalesNew ListingsMarket Overview

Days On Market Until Sale

Page 2: Hilton Head Real Estate Market Report August 2014

Market Overview

Key Metrics Historical Sparklines 8-2013 8-2014 + / – YTD 2013 YTD 2014 + / –

2,320 - 5.5%

111 126

452 363 - 19.7% 3,892

374 337 - 9.9% 2,455

New Listings

Pending Sales

Closed Sales

Days on Market Until Sale

- 0.7%

305 283 - 7.2% 2,669 2,574 - 3.6%

3,865

+ 13.0% 121 111 - 8.1%

Key market metrics for the current month and year-to-date figures.

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

Housing Affordability Index

Inventory of Homes for Sale

119

2,636

123 + 1.3%

--

$341,072 $341,632 + 0.2%

$260,964 $257,458

$348,269 $352,955 + 1.3%

95.5% 94.8%

Months Supplyof Homes for Sale

Median Sales Price

Average Sales Price

Percent of List Price Received

$256,765 $255,000

- 0.1%

- 0.7%

- 0.7% 95.4% 95.3%

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121

--

-- --

--

--8.5

122 + 2.0%

- 1.3%

- 0.2%

2,602

8.5

- 1.3%

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

8-2011 8-2012 8-2013 8-2014

Page 3: Hilton Head Real Estate Market Report August 2014

New Listings

MonthPrior Year

Current Year

+ / –

September 445 433 -2.7%

October 429 508 +18.4%

November 367 373 +1.6%

December 283 275 -2.8%

January 507 486 -4.1%

February 518 477 -7.9%

March 565 613 +8.5%

April 522 618 +18.4%

May 451 433 -4.0%

June 428 450 +5.1%

July 449 425 -5.3%

August 452 363 -19.7%

A count of the properties that have been newly listed on the market in a given month.

456 452

363

August

3,798 3,892 3,865

Year To Date

-0.7%-0.9% -19.7% +2.5%

12-Month Avg 451 455 +0.7%

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2012 2013 2014

200

300

400

500

600

700

800

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical New Listing Activity

2012 2013 2014

Page 4: Hilton Head Real Estate Market Report August 2014

Pending Sales

MonthPrior Year

Current Year

+ / –

September 243 302 +24.3%

October 308 322 +4.5%

November 274 266 -2.9%

December 212 201 -5.2%

January 296 254 -14.2%

February 325 299 -8.0%

March 324 358 +10.5%

April 345 355 +2.9%

May 348 339 -2.6%

June 352 353 +0.3%

July 374 333 -11.0%

August 305 283 -7.2%

A count of the properties on which contracts have been accepted in a given month.

307 305283

August

2,377

2,6692,574

Year To Date

-3.6%-0.7% -7.2% +12.3%

12-Month Avg 309 305 -1.1%

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2012 2013 2014

50

100

150

200

250

300

350

400

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Pending Sales Activity

2012 2013 2014

Page 5: Hilton Head Real Estate Market Report August 2014

Closed Sales

MonthPrior Year

Current Year

+ / –

September 252 295 +17.1%

October 283 316 +11.7%

November 307 271 -11.7%

December 247 283 +14.6%

January 217 232 +6.9%

February 229 188 -17.9%

March 306 262 -14.4%

April 303 308 +1.7%

May 351 312 -11.1%

June 341 343 +0.6%

July 334 338 +1.2%

August 374 337 -9.9%

A count of the actual sales that have closed in a given month.

304

374

337

August

2,216

2,4552,320

Year To Date

-5.5%+23.0% -9.9% +10.8%

12-Month Avg 295 290 -0.9%

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2012 2013 2014

50

100

150

200

250

300

350

400

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Closed Sales Activity

2012 2013 2014

Page 6: Hilton Head Real Estate Market Report August 2014

Days on Market Until Sale

MonthPrior Year

Current Year

+ / –

September 121 105 -13.2%

October 130 117 -9.7%

November 122 124 +1.7%

December 115 95 -17.4%

January 127 107 -15.5%

February 124 112 -9.7%

March 121 118 -2.6%

April 121 105 -13.8%

May 122 108 -11.2%

June 118 109 -7.9%

July 125 103 -17.5%

August 111 126 +13.0%

Average number of days between when a property is listed and when an offer is accepted in a given month.

110 111

126

August

129121

111

Year To Date

-8.1%+1.1% +13.0% -6.7%

12-Month Avg 121 111 -8.6%

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2012 2013 2014

80

90

100

110

120

130

140

150

160

170

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Days on Market Until Sale

2012 2013 2014

Page 7: Hilton Head Real Estate Market Report August 2014

Median Sales Price

MonthPrior Year

Current Year

+ / –

September $230,000 $245,000 +6.5%

October $235,000 $249,833 +6.3%

November $233,000 $250,000 +7.3%

December $238,070 $250,000 +5.0%

January $245,745 $220,600 -10.2%

February $228,000 $250,483 +9.9%

March $225,000 $259,000 +15.1%

April $263,000 $279,500 +6.3%

May $275,625 $249,000 -9.7%

June $252,500 $286,000 +13.3%

July $299,000 $248,000 -17.1%

August $260,964 $257,458 -1.3%

Median price point for all closed sales, not accounting for seller concessions, in a given month.

$212,500

$260,964 $257,458

August

$222,000

$256,765 $255,000

Year To Date

-0.7%+22.8% -1.3% +15.7%

12-Month Med $249,783 $252,750 +1.2%

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2012 2013 2014

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Median Sales Price

2012 2013 2014

Page 8: Hilton Head Real Estate Market Report August 2014

Average Sales Price

MonthPrior Year

Current Year

+ / –

September $358,255 $338,314 -5.6%

October $347,171 $329,877 -5.0%

November $296,461 $341,307 +15.1%

December $324,491 $341,476 +5.2%

January $322,692 $290,536 -10.0%

February $294,120 $335,751 +14.2%

March $304,274 $352,004 +15.7%

April $359,394 $348,056 -3.2%

May $373,557 $326,511 -12.6%

June $337,647 $383,359 +13.5%

July $363,957 $326,936 -10.2%

August $348,269 $352,955 +1.3%

Average sales price for all closed sales, not accounting for seller concessions, in a given month.

$266,470

$348,269 $352,955

August

$309,208$341,072 $341,632

Year To Date

+ 0.2%+ 30.7% + 1.3% + 10.3%

12-Month Avg $337,782 $340,243 +0.7%

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2012 2013 2014

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Average Sales Price

2012 2013 2014

Page 9: Hilton Head Real Estate Market Report August 2014

Percent of List Price Received

MonthPrior Year

Current Year

+ / –

September 94.0% 95.5% +1.6%

October 95.0% 95.6% +0.6%

November 95.5% 94.6% -0.9%

December 95.2% 95.0% -0.3%

January 95.1% 95.2% +0.2%

February 95.3% 95.2% -0.1%

March 96.1% 95.1% -1.1%

April 95.1% 96.0% +0.9%

May 95.8% 94.8% -1.1%

June 95.2% 95.7% +0.5%

July 95.1% 95.5% +0.5%

August 95.5% 94.8% -0.7%

Percentage found when dividing a property’s sales price by its last list price, then taking the average for all properties sold in a given month, not accounting for seller concessions.

94.8% 95.5% 94.8%

August

94.4% 95.4% 95.3%

Year To Date

-0.1%+0.7% -0.7% +1.0%

12-Month Avg 95.3% 95.3% -0.0%

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2012 2013 2014

90%

91%

92%

93%

94%

95%

96%

97%

98%

99%

100%

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Percent of List Price Received

2012 2013 2014

Page 10: Hilton Head Real Estate Market Report August 2014

Housing Affordability Index

MonthPrior Year

Current Year

+ / –

September 147 129 -11.9%

October 143 127 -11.3%

November 145 134 -7.5%

December 143 128 -10.4%

January 141 137 -3.0%

February 148 122 -17.8%

March 150 118 -21.2%

April 131 109 -16.4%

May 120 126 +4.6%

June 124 109 -12.0%

July 106 126 +19.3%

August 119 122 +2.0%

This index measures housing affordability for the region. An index of 120 means the median household income was 120% of whatis necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

156

119 122

August149

121 123

Year To Date

+1.3%-23.4% +2.0% -18.6%

12-Month Avg 135 124 -7.1%

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2012 2013 2014

40

60

80

100

120

140

160

180

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Housing Affordability Index

2012 2013 2014

Page 11: Hilton Head Real Estate Market Report August 2014

Inventory of Homes for Sale

MonthPrior Year

Current Year

+ / –

September 2,884 2,585 -10.4%

October 2,837 2,597 -8.5%

November 2,772 2,547 -8.1%

December 2,611 2,446 -6.3%

January 2,647 2,521 -4.8%

February 2,709 2,580 -4.8%

March 2,811 2,714 -3.5%

April 2,855 2,837 -0.6%

May 2,805 2,788 -0.6%

June 2,730 2,724 -0.2%

July 2,651 2,669 +0.7%

August 2,636 2,602 -1.3%

The number of properties available for sale in active status at the end of a given month.

2,8662,636 2,602

August

-1.3%-8.0%

12-Month Avg 2,746 2,634 -4.0%

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2012 2013 2014

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Inventory of Homes for Sale

Page 12: Hilton Head Real Estate Market Report August 2014

Months Supply of Inventory

MonthPrior Year

Current Year

+ / –

September 10.5 8.2 -21.3%

October 10.1 8.2 -18.2%

November 9.7 8.1 -16.5%

December 9.2 7.8 -14.9%

January 9.2 8.1 -11.1%

February 9.2 8.4 -8.9%

March 9.6 8.7 -8.5%

April 9.7 9.1 -6.2%

May 9.5 9.0 -5.1%

June 9.1 8.8 -3.5%

July 8.6 8.7 +1.3%

August 8.5 8.5 -0.2%

The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months.

10.6

8.5 8.5

August

-0.2%-19.2%

12-Month Avg 9.4 8.5 -9.8%

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2012 2013 2014

0

5

10

15

20

25

30

1-2007 1-2008 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014

Historical Months Supply of Inventory