2018 AT A GLANCE Real Estate Trends and Market Projections Hilton Head Island and Bluffton What Buyers and Sellers Need to Know for 2018
Source: Clare Trapasso, Realtor.com, 2017
Just about every would-be buyer out there knows there simply aren’t enough homes for sale these days to appease the hordes of competition. But despite the shortages, rising prices, and bidding wars, more homes are expected to be sold in 2018 than in more than a decade. In 2018, the National Association of Realtors predicts that existing-home (previously lived in) purchases will rise an additional 2.8% to 5.8 million. “The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation, and rising consumer confidence are giving more households the assurance and ability to purchase a home,” NAR Chief Economist Lawrence Yun said in a statement. “However, prices are still rising too fast in many areas and are outpacing incomes.” Sales of brand-new homes, which builders can’t seem to put up fast enough, jumped 10.7%, from 560,000 in 2016 to 620,000 in 2017, according to NAR. They’re expected to rise an additional 8% in 2018, to 670,000 sales. New homes are typically more expensive than existing homes, as builders must contend with shortages of land and labor, plus rising costs of materials and difficulty obtaining financing.
AGREEMENT
The price tags of all homes are expected to keep rising. NAR predicts prices will jump an additional 3.5% in 2018. “As a result, buyers are compromising on the number of rooms, length of a commute, or other home qualities,” says Senior Economist Joseph Kirchner of Realtor.com. “Meanwhile, builders are mostly building for the mid- to upper-price range. This mismatch in supply and demand is making affordability more acute for those with modest incomes.” In some white-hot markets along the coasts, prices are rising by double digits because of the dearth of homes. That’s led many current homeowners who might be interested in trading up to a larger, nicer home in their area to hold off—because those homes are simply out of their price range. Bidding wars have gotten so bad in Seattle that buyers are driving up prices 30% over asking in some cases, says local real estate broker Chris Bajuk, of HomeSmart Real Estate Associates. “It is crazy,” Bajuk says. “There’s strong demand and lack of supply.” Buyers are coping by putting ever-higher percentages of their incomes toward homeownership—even when it means eating at home every night and doing without new clothes or annual beach vacations. Sometimes they’re spending half of their take-home pay on housing, he says. Others are purchasing homes farther from the city center where they work, settling for smaller homes or even purchasing residences in need of some work. “They may need to spend more of their disposable income,” Bajuk says. “Or they may need to lower their expectations on what kind of home they get.”
Home Values Are Changing! Engel & Völkers Advisors are specially trained to conduct a comprehensive analysis of your property using proprietary tools and standards so that decisions on pricing strategy and marketing have a greater chance of finding the best buyer for your home in an acceptable time frame. A Home Valuation performed by an Engel & Völkers Advisor is an essential part of the services we provide. It is the most accurate assessment of your home’s value based on data and information that includes current and historical real estate activity in your market. Contact us for a complimentary, no-obligation Home Valuation. Even if you are not considering selling, it’s important to know the value of your major assets.
How’s The Hilton Head-Bluffton Real Estate Market? Year-to-Date Mainland* Home Sales 2012
2013
2014
2015
2016
2017
1,299
1,556
1,438
1,754
1,958
2,036
$206,000
$229,000
$245,000
$265,000
$280,000
$295,000
Median Sale/List Ratio
96.35%
97.06%
97.19%
97.34%
97.50%
97.59%
Median Days on Market
79
56
56
48
36
47
Number of Homes Sold Median Price
*This information was provided by the Hilton Head Area MLS and deemed correct at the time of writing. Any changes since then are not reflected here. The Mainland includes all the areas of Beaufort County South of the Broad plus all of Sun City, but not including Hilton Head Island or Daufuskie Island.
The Mainland housing market continues to be on fire, setting the all-time record for any year in the history of our area, according to statistics from the Hilton Head Island-Bluffton Area Multiple Listing Service. In the boom years prior to The Great Recession, homes sales in Greater Bluffton, which includes all of southern Beaufort County except Hilton Head and Daufuskie Islands, peaked in 2005 at 1,172 sales. In 2017 though, an extraordinary 2,036 homes were sold, bettering the pre-recession peak by 27%. In other positive news, home values in 2017 were up 5.4% over 2016 prices. With today’s historically low interest rates, prices rising and more growth coming to the area, it is an extraordinary time to purchase real estate in our area.
= All Time Best
Year-to-Date Hilton Head Island* Home Sales 2012
2013
2014
2015
2016
2017
768
830
827
864
844
913
$470,000
$486,000
$486,000
$525,000
$525,000
$550,000
Median Sale/List Ratio
94.28%
95.10%
95.07%
95.46%
95.63%
95.87%
Median Days on Market
135
109
113
104
82
95
Number of Homes Sold Median Price
*This information was provided by the Hilton Head Area MLS and deemed correct at the time of writing. Any changes since then are not reflected here.
The Hilton Head Island housing market in 2017 enjoyed its best year since the beginning of the recession. More homes sold in 2017 than in any year since 2005, according to statistics from the Hilton Head Area Multiple Listing Service. As you can see from the chart to the left, sales on the Island have steadily increased over the last five years. In other positive news, home values in 2017 were up 4.8% over 2016 prices, but still 26% below the peak set in 2005. With today’s historically low interest rates and prices still way below the peak, it is an extraordinary time to purchase real estate on the Island.
= Great Recession Low Point
TECH FOCUS
Technological Capabilities. Our Competitive Edge. Tailored Digital Strategies to Sell Your Home - Quicker and For More!
GIVING YOU THE EDGE.™ SMART MARKETING. EXTENSIVE EXPOSURE. Committed to delivering the highest level of customer service, Engel & Völkers provides Extensive Domestic & Global Exposure (EDGE) designed to maximize the exposure of your listing to qualified, targeted buyers worldwide. Through the most highly trusted strategic online and mobile marketing partners, the Engel & Völkers network spanning more than 30 countries, and the white-glove professionalism of your local Advisor, we market your property with the utmost care and competency. THE E&V MOBILE STRATEGY Most real estate related searches happen on mobile devices. To meet the needs of today’s mobile clientele, we offer the EV Real Estate app to help you get your listing directly into the hands of potential buyers. The app offers users 24/7 access to homes for sale in their neighborhood and beyond by searching for homes based on their current location or by adding an address, city or zip code. For sellers, it allows you to view your listing exactly how potential buyers see it, in addition to comparable listings in your market. Share your listing via text or email from the app to increase exposure. MAKING VIRTUAL A REALITY Through Engel & Völkers’ North American partnership with immoviewer, individuals can enjoy 3D guided tours of our listings to discover every aspect of a home and help target their search. To provide the most premium listing experience for you and your prospective buyers, a virtual listing tour is part of our marketing strategy.
2018 Color Trends That Should Be On Your Radar
Source: Sara Tardiff, HouseBeautiful.com, 2017
Of all the design trends we are looking forward to most in the coming year, color holds a steady spot at the top of our list. After all, it sets the tone for what furniture we buy, what decor we invest in, and the overall mood for that design year. Sherwin-Williams predicts that 2018 will embody the spirit of contemporary life with their three color palettes: Affinity, Connectivity, and Sincerity. Each one is inspired by the collective culture of the moment — from fashion to technology — and captures the aura of a year that is bound to be full of progress.
AFFINITY This color story of striking blue, animated fuchsia, and stabilizing brown, the Affinity palette is set to celebrate the connection of people and places. “We’re remapping our sense of community, landlocked cities are becoming global hubs of crafts and gastronomy,” says Wadden, Sherwin-Williams’ Director of Marketing. “Home and car sharing, as well as e-learning, have created a culture of everyday nomadism and the wanderlust-obsessed.” Affinity is just like any good getaway: relaxed but full of unexpected fun. Decorate accordingly with a base of neutral browns and vibrant accent colors in an array of pinks and blues.
CONNECTIVITY The Connectivity palette draws from innovations in tech, including pixelated oranges, digital blues and greens, and high-definition yellow. “In Silicon Valley, Austin, Berlin and Beijing, techies are the new hippies, full of breakthrough ideas and utopian ideals,” Wadden says. “Connectivity is modern and playful, bringing in dark watery tones of blue that are balanced with neutrals, warm yellow and energetic purples.” Punctuate any room with some tech-inspired hues, while working in some much-needed warmth with understated grays and creams.
SINCERITY Minimalism isn’t going anywhere in 2018. However, it is taking on a less structured look. “With the Sincerity palette, silence is no longer empty, but instead is rare and rich with possibility,” says Wadden. “Sincerity is about mindful living and creating an environment to disconnect and recharge. Soft, washed neutrals, greens and sanctuary pinks work together to create harmony.” Step away from the stark light and dark contrasts and embrace color fluidity. This palette is all about ditching harsh lines for sandy browns, muted grays, and hazy greens that harmonize perfectly. Don’t stress too much about sticking to a strict color scheme, but instead let one organic shade blend into the next.
TECH FOCUS
Technology Trends That Will Dominate 2018
Source: Erik Larson, Witf.com, 2017
Just how smart will your home and office be in 2018? With innovation taking immense leaps in technology, there are major trends in technology that we expect to see in 2018.
Cars Get Smart
Smart Home Tech and the IoT
1
3
We’ve all heard about the internet of things (IoT) and the resultant smart home technologies that will interconnect everything. Part of the problem holding us back is too much competition in the market, and not enough collaboration to create a reasonable, effective smart home design. Large companies are working on this, so we will likely see significant advancements in the coming years.
Advances in car technology expect to take a new shape, from driverless cars to a battery-powered transport system. However, these inventions will be put to the test in 2018 as they move into the consumer sphere. Internet connectivity will be a major theme with these cars, to bridge the gap between current vehicles and the next generation of connected and comfortable cars.
2
4
Stepping Up Security
Physical-Digital Integration
While new cars will work on increased comfort, other areas of life will gain a focus on technology and security. Whether it’s house alarm systems or shopping safely online, we are all daily consumers of safety solutions. 30% of the world’s population will require massive security infrastructure investments by 2018.
Our lives have slowly been connected through mobile technology and access to seamless information through social media and the internet. People purchase products online that are delivered right to them without going to physical stores. In 2018, we expect interaction between digital and physical realities.
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