December 2010 Monthly Indicators

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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®

December 2010

Contents

While there’s no shortage of uncertainty regarding what 2011 will bring, one thing is certain: 2010 was yet another “transition year.” Patience is running g this painstakingly p g y slow recovery. y According g to closelyy watched thin during indices, national home sales hit bottom in the first quarter of 2009 and prices followed suit shortly thereafter. As the bull gets set to wrestle the bear to the ground in 2011, let’s take a look at how we concluded 2010.

New Listings Pending Sales Closed Sales Days On Market Until Sale

Pending Sales in the Hilton Head region decreased 3.3 percent since December 2009 to arrive at 178 contracts written. Meanwhile, New Listings decreased 19.4 percent to 282 new homes. Total Active Listings were down 10.9 percent from year-ago levels to weigh in at 3,022. Prices were still soft. Median Sales Price decreased 10.4 percent versus last December, checking in at $250,000. Market times decreased 1.5 percent and are now at 136 days. Months Supply of Inventory decreased 24.1 percent to 14.9 months. You might have noticed that interest rates are stealthily ticking upwards. Yes, higher rates are expected in 2011 as we press toward a more durable recovery. This recovery is hinged upon continued labor market growth coupled with supply-side and demand-side housing market improvements. This wet, windowless basement of a recession has been cold and daunting, but a neon exit sign beckons from our periphery.

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

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

December 365

350

6,773 5,942

282

One Year Change:

2008

2009

5,726

One Year Change:

- 19.4%

- 3.6%

Two Year Change:

Two Year Change:

- 22.7%

- 15.5%

2010

2008

2009

2010

Historical New Listings 800

700

600

500

400

300

200

Jan-07

Jan-08

Jan-09

Jan-10

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

December

Year to Date 184

178

2,686 2,297 2,035

108

One Year Change:

One Year Change:

+ 16.9%

- 3.3%

2008

2009

Two Year Change:

Two Year Change:

+ 64.8%

+ 32.0%

2008

2010

2009

2010

Historical Pending Sales 300

250

200

150

100

50

Jan-07

Jan-08

Jan-09

Jan-10

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

Year to Date

December 218

220 2,486

174

2008

2,099

2009

2,142

One Year Change:

One Year Change:

+ 0.9%

+ 16.1%

Two Year Change:

Two Year Change:

+ 26.4%

+ 18.4%

2010

2008

2009

2010

Historical Closed Sales 300

250

200

150

100

50

Jan-07

Jan-08

Jan-09

Jan-10

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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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

December 138

142

136

149 132

118

2008

2009

One Year Change:

One Year Change:

- 1.5%

- 11.4%

Two Year Change:

Two Year Change:

+ 15.3%

- 6 8%

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

Jan-10

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

Year to Date

December $272,500

$279,000

$315,900

$250,000

$266,000 $234,900

2008

2009

One Year Change:

One Year Change:

- 10.4%

- 11.7%

Two Year Change:

Two Year Change:

- 8.3%

- 25.6%

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

Jan-10

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

Year to Date

December $389,734

$465,479 $375,862 $382,054

$310,895

2008

2009

$343,044

One Year Change:

One Year Change:

- 17.3%

- 10.2%

Two Year Change:

Two Year Change:

- 20.2%

- 26 3%

2010

2008

2009

2010

Historical Average Sales Price $650,000

$600,000

$550,000

$500,000

$450,000

$400,000

$350,000

$300,000

$250,000

Jan-07

Jan-08

Jan-09

Jan-10

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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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

December

87.0%

2008

86.4%

2009

88.3% 85.5%

85.3%

87.3%

One Year Change:

One Year Change:

- 1.1%

+ 2.3%

Two Year Change:

Two Year Change:

- 1.7%

- 1.1%

2010

2008

2009

2010

Historical Percent of Original List Price Received 94%

92%

90%

88%

86%

84%

82%

Jan-07

Jan-08

Jan-09

Jan-10

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

Year to Date

December

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.

120 96

127

101

106 84

2008

2009

One Year Change:

One Year Change:

+ 18.9%

+ 20.3%

Two Year Change:

Two Year Change:

+ 26.0%

+ 51.8%

2010

2008

2009

2010

Historical Housing Affordability Index 140

125

110

95

80

65

50

Jan-07

Jan-08

Jan-09

Jan-10

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

December 4,000 3,392 3,022

One Year Change:

- 10.9% Two Year Change:

- 24.5%

2008

2009

2010

Hi t i l IInventory Historical t off Homes H Available A il bl 5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

Jan-07

Jan-08

Jan-09

Jan-10

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

December 24.7 19.6 14.9

One Year Change:

- 24.1% Two Year Change:

- 39.6%

2008

2009

2010

Historical Months Supply of Inventory 30

25

20

15

10

5

0

Jan-07

Jan-08

Jan-09

Jan-10

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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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

Inventory of Homes and Condominiums Available Months Supply of Inventory

Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec

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

394 327 282 193 220 178 162 182 220 144 141 136 $240,000 $228,750 $250,000 $321,857 $327,176 $310,895 86.4% 86.2% 85.5% 126 132 120 3,523 3,342 3,022 16.3 15.9 14.9

451 408 350 235 183 184 231 214 218 153 157 138 $290,000 $262,750 $279,000 $394,110 $361,187 $375,862 86.4% 85.7% 86.4% 100 111 101 3,726 3,635 3,392 22.9 20.8 19.6

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 +/- 12.6% - 19.9% - 19.4% - 17.9% + 20.2% - 3.3% - 29.9% - 15.0% + 0.9% - 5.6% - 10.2% 10 2% - 1.5% - 17.2% - 12.9% - 10.4% - 18.3% - 9.4% - 17.3% + 0.0% + 0.6% - 1.1% + 26.1% + 19.2% + 18.9% - 5.4% - 8.1% - 10.9% - 28.9% - 23.4% - 24.1%

Current Prior Year

+/-

5,117 5,444 5,726 2,288 2,508 2,686 2,084 2,266 2,486 131 132 132 $233,832 $233,000 $234,900 $347,775 $346,130 $343,044 87.6% 87.5% 87.3% 129 130 127

5,184 5,592 5,942 1,930 2,113 2,297 1,710 1,924 2,142 150 150 149 $266,000 $265,000 $266,000 $385,470 $382,756 $382,054 85.1% 85.2% 85.3% 108 110 106

- 1.3% - 2.6% - 3.6% + 18.5% + 18.7% + 16.9% + 21.9% + 17.8% + 16.1% - 12.5% - 12.4% 12 4% - 11.4% - 12.1% - 12.1% - 11.7% - 9.8% - 9.6% - 10.2% + 2.9% + 2.7% + 2.3% + 19.5% + 18.2% + 20.3%

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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 closed 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.

Inventory of Homes and Condominiums Available

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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