July 2010 Monthly Indicators Report

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Monthly Indicators A research tool provided by the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS®

July 2010

Contents

"Recovery loses steam." "Housing demand in a slump." "Tax credit leaves mess in its wake." We're bombarded with headlines like these every day. g the Some have merit,, some don't. The truth is,, the economyy is now driving housing market and not vice versa.

New Listings Pending Sales Closed Sales Days On Market Until Sale

Pending Sales in the Hilton Head region skyrocketed by 33.3 percent from last July to arrive at 260. New Listings dipped slightly by 3.1 percent since last July and overall inventory declined by 12.8 percent. Median Sales Price increased by 10.0 percent over last July to arrive at $275,000. However, buyers were only willing to pay 87.6 percent of a seller's asking price and market times declined by 16.5 percent compared to last year. Months Supply of Inventory dropped by 34.5 percent to arrive at 17.6 months, given current demand.

Median Sales Price Average Sales Price Percent of Original List Price Received at Sale Housing Affordability Index Inventory of Homes Available Months Supply of Inventory Market Overview Explanation Page

2 3 4 5 6 7 8 9 10 11 12 13

In sum, the housing market is trying to hold its ground until the job situation improves. Only after widespread, private-sector hiring will demand be restored to the market and prices continue to stabilize. Until then, it's a hurry up and wait game.

All data provided by Multiple Listing Service of Hilton Head Island ©2010 HHIMLS - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS®

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New Listings From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July 528 479

4,315 464

3,762

3,652

One Year Change:

2008

2009

One Year Change:

- 3.1%

- 2.9%

Two Year Change:

Two Year Change:

- 12.1%

- 15.4%

2010

2008

2009

2010

Historical New Listings 800

700

600

500

400

300

200

Jan-07

Jan-08

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-09

2


Pending Sales From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

July

Year to Date 1,678

260 1,362 195

1,260

155 One Year Change:

One Year Change:

+ 33.2%

+ 33.3%

2008

2009

Two Year Change:

Two Year Change:

+ 67.7%

+ 23.2%

2010

2008

2009

2010

Historical Pending Sales 300

250

200

150

100

50

0

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

3


Closed Sales From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July

1,486

220

214

1,327

198

1,082

2008

2009

One Year Change:

One Year Change:

+ 11.1%

+ 37.3%

Two Year Change:

Two Year Change:

+ 2.8%

+ 12.0%

2010

2008

2009

2010

Historical Closed Sales 300

250

200

150

100

50

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

4


Days on Market Until Sale From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July 151

2008

150

145

2009

146

126

132

One Year Change:

One Year Change:

- 16.5%

- 10.0%

Two Year Change:

Two Year Change:

- 17.0%

- 9.4%

2010

2008

2009

2010

Historical Days on Market Until Sale 175

165

155

145

135

125

115

105

95

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

5


Median Sales Price From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July

$325,000

$309,500 $275,000

$267,250

$250,000

2008

$237,180

2009

One Year Change:

One Year Change:

+ 10.0%

- 11.3%

Two Year Change:

Two Year Change:

- 11.1%

- 27.0%

2010

2008

2009

2010

Historical Median Sales Price $450,000

$400,000

$350,000

$300,000

$250,000

$200,000

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

6


Average Sales Price From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July $424,565 $395,628

$367,530

$475,860 $377,733

$357,580

One Year Change:

2008

2009

One Year Change:

+ 7.6%

- 5.3%

Two Year Change:

Two Year Change:

- 6.8%

- 24.9%

2010

2008

2009

2010

Historical Average Sales Price $620,000

$570,000

$520,000

$470,000

$420,000

$370,000

$320,000

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

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Percent of Original List Price Received From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July

88.1%

87.6%

88.6%

84.7%

2008

87.6% 84.6%

2009

One Year Change:

One Year Change:

+ 3.5%

+ 3.5%

Two Year Change:

Two Year Change:

- 0.6%

- 1.2%

2010

2008

2009

2010

Historical Percent of Original List Price Received 94%

92%

90%

88%

86%

84%

82%

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

8


Housing Affordability Index From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Year to Date

July 110

The HAI formula measures housing affordability. An HAI of 120 means the median family income in the region is 120% of the necessary income to qualify for the median priced home using a 20% down, 30-year fixed rate mortgage.

109

124 104 76

73

2008

2009

One Year Change:

One Year Change:

- 0.8%

+ 19.7%

Two Year Change:

Two Year Change:

+ 44.2%

+ 71.6%

2010

2008

2009

2010

Historical Housing Affordability Index 140

125

110

95

80

65

50

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

9


Inventory of Homes Available From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

July 4,253

4,116 3,591

One Year Change:

- 12.8% Two Year Change:

- 15.6%

2008

2009

2010

Historical Inventory of Homes Available 5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

10


Months Supply of Inventory From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

July 26.8 22.0 17.6

One Year Change:

- 34.5% Two Year Change:

- 20.1%

2008

2009

2010

Historical Months Supply of Inventory 30

25

20

15

10

5

0

Jan-07

Jan-08

Jan-09

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Jan-10

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Market Overview From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

Monthly Current Prior Year New Listings

Pending Sales

Closed Sales

Days on Market Until Sale

Median Sales Price

Average Sales Price

Percent of Original List Price Received at Sale Housing Affordability Index

Total Active Listings Available at Month End Months Supply of Inventory

May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul May Jun Jul

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010

467 502 464 243 236 260 212 261 220 113 141 126 $235,995 $240,000 $275,000 $363,236 $331,625 $395,628 89.7% 87.8% 87.6% 122 121 109 3,695 3,695 3,591 18.1 17.9 17.6

439 530 479 211 202 195 187 210 198 144 151 150 $275,000 $284,500 $250,000 $368,758 $384,898 $367,530 84.8% 84.4% 84.7% 101 98 110 4,178 4,178 4,116 26.9 26.8 26.8

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

Year to Date +/+ 6.4% - 5.3% - 3.1% + 15.2% + 16.8% + 33.3% + 13.4% + 24.3% + 11.1% - 21.2% - 6.5% 6 5% - 16.5% - 14.2% - 15.6% + 10.0% - 1.5% - 13.8% + 7.6% + 5.8% + 4.0% + 3.5% + 20.8% + 23.6% - 0.8% - 11.6% - 11.6% - 12.8% - 32.6% - 33.2% - 34.5%

Current Prior Year

+/-

2,686 3,188 3,652 1,182 1,418 1,678 1,005 1,266 1,486 131 133 132 $231,000 $232,040 $237,180 $355,966 $350,963 $357,580 87.5% 87.6% 87.6% 124 124 124

2,753 3,283 3,762 863 1,065 1,260 674 884 1,082 144 145 146 $265,000 $270,000 $267,250 $378,498 $380,018 $377,733 84.7% 84.6% 84.6% 104 102 104

- 2.4% - 2.9% - 2.9% + 37.0% + 33.1% + 33.2% + 49.1% + 43.2% + 37.3% - 9.2% - 8.7% 8 7% - 10.0% - 12.8% - 14.1% - 11.3% - 6.0% - 7.6% - 5.3% + 3.4% + 3.5% + 3.5% + 19.1% + 21.4% + 19.7%

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Explanation of Methodology From the Multiple Listing Service of Hilton Head Island and the Hilton Head Area Association of REALTORS速

New Listings

A count of the properties that have been newly listed on the market in a given month, regardless of what status they're currently in.

Pending Sales

A count of the properties that have offers accepted on them in a given month, regardless of whether or not the sale closes.

Closed Sales

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

Days on Market Until Sale

The average number of days between when a property is first listed and when it is closed, sold properties only.

Median Sales Price

The median sales price for all closed sales in a given month month, sold properties only only.

Average Sales Price

The average sales price for all closed sales in a given month, sold properties only.

Percent of Original List Price Received at Sale

The average percentage found when dividing a property's sales price by the original list price, sold properties only.

Housing Affordability Index

Measures the affordability of the region's homes. An index of 120 would mean that the median family income in the region is 120% of what's necessary to qualify for the median priced home.

Total Active Listings Available at Month End

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

Months Supply of Inventory

Compares the number of active listings available to the average monthly pending sales for the last twelve months.

All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS速

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