Area real estate trends continue to illustrate some general pricing stability as we enter into the final quarter of 2014, especially from a macro-perspective, with only nominal changes noted in median and average sale prices. Keep in mind that these type pricing models are not always reliable indicators of what is really happening with values, but is a readily available data point that market participants tend to monitor. The strongest sales activity continues to be under $450,000 when we consider all area markets.
Although there were fewer new listings in August of 2014, the volume of new listings in our marketplace (year to date) has held at a relatively consistent level. One interesting observation is that sellers are utilizing the entire calendar year to introduce a new listing into the market, and the volume of pending sales each month has not fluctuated by more than 10% in 8 out of the past 12 months. This is representative of a real estate market that is no longer “seasonal”. Closed sales volume is down slightly when compared to last year, however is up almost 5% when compared to 2012. On a positive note, the last five months have yielded the highest volume of sales during the past year, with July and August being the strongest two months from the year.
“Days on Market” statistics have continued to trend down since 2012, however the “DOM” data as reported in the MLS does not always reflect listings that are withdrawn or expired and then relisted under a new agreement. Regardless, a declining DOM trend is indeed a positive market indicator. As one might expect, market exposure periods are almost always affected by price and the upper tier listings take longer to sell due to fewer qualified buyers. Contract negotiations remain a part of almost every real estate deal, yet a sale price to list price ratio of 95% still remains the “going rate” when we generalize the entire marketplace. Some area markets however have lower available inventory levels, and with mortgage rates near historic lows, offers from 98% to over 100% have emerged.
For additional insight into the overall Hilton Head Island/Bluffton SC real estate market, trends, and analysis or for in-depth statistics on an individual plantation or community, please contact Broker/Client Market Advisor Chris Sanders at 843-341-6300 or email Chris@CollinsGroupRealty.com