THE STATE
N T
Our Portfolio of Fine Homes in Leamington and Palmetto Dunes R PR O I V C E E M E
of the Leamington Villas Real Estate Market
IM
P
April 2018
KEY METRICS
22 Arthur Hills Court, Palmetto Dunes
4 Bedrooms | 3.5 Bathrooms | 3,500 Htd. SqFt | Lagoon/Golf View | $895,000
Million Dollar Views Located on a quiet cul-de-sac in Leamington Plantation, between the 11-mile lagoon and the 2nd and 3rd holes of the Arthur Hills Golf Course, is this magnificent home. Plentiful windows beckon sunlight to dance at your feet as you sashay through the formal living room and dining room down the hallway to an open family area, year-round Carolina room, and deck. The family room adjoins an oversized kitchen with a breakfast nook and extra large island. Abundant storage holds every woman’s treasures, and the oversized garage makes for the perfect ‘man-cave.’ This picturesque home is framed by lush landscaping and a wrap-around deck.
First Quarter of 2018 in Review
Leamington Villas’ first quarter of 2018 sales are significantly up from last year: seven villas closed, up from the three which closed in the first quarter of 2017. The first quarter total dollar volume of villas sold in 2018 was $7,184,000, up from $2,945,000 in the first quarter of 2017. Supply and demand: there are currently 39 villas listed for sale with an average of 2.33 villas selling per month over the last three months. That translates into a 16.71-month supply, considered by industry experts to be a buyer’s market. As of April 1st, 2018, there were six villas pending/under contract.
7
$1,155,000
96.33%
301
Total Sales
Median Price
Sale to List Price
Median Days on Market
Hilton Head Island Real Estate Market Overview
47 Ocean Lane # 5108, Palmetto Dunes (Hampton Place Villas) 3 Bedrooms | 3 Bathrooms | 1,971 Htd. SqFt | Ocean View | $1,275,000 Direct Oceanfront Views Await You! This beautiful 1st-floor villa offers breathtaking views of the Atlantic Ocean. Fabulous open floor plan with family room, dining area, breakfast nook, and kitchen with stainless steel appliances and granite counters. Luxury vinyl floors throughout main living area, travertine in the bathrooms, and carpet in bedrooms. Private balcony off the bedroom and family rooms. Hampton Place Villas offers residents two oceanfront swimming pools with sun decks, a spa, a fitness center, and a grill area. Under garage parking and private locked storage for your convenience. It’s a great investment property and can generate $85K - $90K of rental income a year.
COMMUNITY SPECIALIST The Clarke Team is your Leamington Villas Real Estate Specialist. Are you considering listing your home? Please contact
us for a complimentary, no-obligation home value consultation and let us show you how we utilize our digital presence, tailored platforms, and global network of advisors and premium buyers to sell your home.
Larry and Karen Clarke, Real Estate Advisors Main Shop | 800 Main Street, Hilton Head Island South Island Lounge | 7 New Orleans Road, Hilton Head Island Historic Bluffton Lounge | 6 Promenade Street, Suite 1001, Bluffton
Telephone • 843-290-5828 Email • clarketeam@evusa.com Website • www.clarketeam.evusa.com ©2018 Engel & Völkers. All rights reserved. Each brokerage is independently owned and operated. All information provided is deemed reliable but is not guaranteed and should be independently verified. If your property is currently represented by a real estate broker, this is not an attempt to solicit your listing. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
PRSRT STD US POSTAGE PAID Permit 73
Hilton Head Is., SC
ACTIVE LISTINGS ON HILTON HEAD ISLAND
636 How’s the Hilton Head Island Real Estate Market Doing?
YTD Hilton Head Island Home Sales YTD Through March 31 for Each Year
Year
Number of Homes Sold
Median Price
2013
149
$470,000
2014
169
$485,000
2015
181
$531,000
2016
183
$500,000
2017
177
$520,000
2018
211
$532,000
In 2018 the Hilton Head Island housing market enjoyed its best first quarter in 13 years, according to statistics from the Hilton Head Area Multiple Listing Service. As you can see from the chart to the left, the number of sales in the first quarter are up to 211, a 19% increase from 2017. The median price is also up, 2.2% above the 2017 first quarter median price, but is still 28% below the peak set in 2006. The median price of homes selling in the US is at its highest ever. It is expected that Island prices in the next several years will also rise into record setting territory. Thus, with prices still way below the peak and today’s historically low interest rates, it is an exceptional time to invest in real estate on the Island.
This information is based on data provided by Multiple Listing Service of Hilton Head Island, Inc. (“HHIMLS”) for the period January 2018 through April 4, 2018. HHIMLS does not guarantee and is not in any way responsible for its accuracy. Data provided by HHIMLS may not reflect all real estate activity in the market.
Leamington Villa Listings STATUS
VILLA COMPLEX
ADDRESS
Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Pending Pending Pending Pending Pending Pending Sold Sold Sold Sold Sold Sold Sold
Townhomes at Southshore Townhomes at Southshore Somerset Villas Somerset Villas Windsor Place I Villas Hampton Place Villas Hampton Place Villas South Shore Commons South Shore Commons Somerset Villas Barrington Arms Villas Windsor Place I Villas Barrington Arms Villas Barrington Arms Villas Abbington Villas Windsor Ct N Villas Abbington Villas Hampton Place Villas Windsor Place I Villas Wendover Dunes Villas Barrington Court Villas Barrington Court Villas Windsor Place I Villas Abbington Villas Windsor Place II Villas Barrington Arms Villas Barrington Park Villas Hampton Place Villas Hampton Place Villas Windsor Place II Villas Windsor Place II Villas Hampton Place Villas Barrington Court Villas Windsor Place II Villas Barrington Arms Villas Barrington Court Villas Barrington Park Villas Barrington Park Villas Barrington Park Villas Windsor Place II Villas Hampton Place Villas Windsor Ct S Villas Windsor Place I Villas Barrington Park Villas Barrington Park Villas Windsor Ct S Villas Windsor Place II Villas Windsor Ct S Villas Hampton Place Villas Hampton Place Villas Hampton Place Villas Wendover Dunes Villas
122 S Shore Drive Unit #122 156 S Shore Drive Unit #156 164 S Shore Drive Unit #406 164 S Shore Drive Unit #201 65 Ocean Lane Unit #309 41 Ocean Lane Unit #6108 47 Ocean Lane Unit #5108 125 S Shore Drive Unit #1201 135 S Shore Drive Unit #2101 164 S Shore Drive Unit #105 75 Ocean Lane Unit #404 65 Ocean Lane Unit #203 75 Ocean Lane Unit #305 75 Ocean Lane Unit #105 50 Ocean Lane Unit #108 51 Ocean Lane Unit #4305 50 Ocean Lane Unit #110 47 Ocean Lane Unit #5203 65 OCEAN Lane Unit #406 87 Ocean Lane Unit #8116 77 Ocean Lane Unit #110 77 Ocean Lane Unit #111 65 Ocean Lane Unit #107 50 Ocean Lane Unit #121 63 Ocean Lane Unit #2116 75 Ocean Lane Unit #401 7577 Ocean Lane Unit #702 47 Ocean Lane Unit #5204 47 Ocean Lane Unit #5501 63 Ocean Lane Unit #2314 63 Ocean Lane Unit #2414 47 Ocean Lane Unit #5104 77 Ocean Lane Unit #117 63 Ocean Lane Unit #2114 75 Ocean Lane Unit #406 77 Ocean Lane Unit #217 7577 Ocean Lane Unit #705 77 Ocean Lane Unit #713 7577 Ocean Lane Unit #712 63 Ocean Lane Unit #2219 47 Ocean Lane Unit #5209 57 Ocean Lane Unit #3403 65 Ocean Lane Unit #102 77 Ocean Lane Unit #603 7577 Ocean Lane Unit #607 57 Ocean Lane Unit #3107 63 Ocean Lane Unit #2220 57 Ocean Lane Unit #3408 41 Ocean Lane Unit #6401 47 Ocean Lane Unit #5306 41 Ocean Lane Unit #6103 89 Ocean Lane Unit #8128
KEY TRENDS
TOTAL FULL HALF YEAR APPROX. BEDROOMS BATHS BATHS BUILT SQ. FOOTAGE Ocean 6 6 0 1999 5,029 Ocean 5 5 0 1999 4,232 Ocean 3 3 1 1999 2,740 Ocean 3 3 1 1999 2,740 Ocean 3 3 0 1993 1,830 Ocean, Pool 3 3 0 1996 1,971 Ocean 3 3 0 1996 1,971 Landscape, Pool 3 3 0 2006 2,481 Landscape, Pool 3 3 0 2006 2,481 Ocean 3 3 1 1999 2,366 Ocean, Pool 3 3 0 1986 1,792 Landscape, Ocean 4 4 0 1993 2,130 Ocean 3 3 0 1986 1,792 Ocean, Pool 3 3 0 1986 1,792 Lagoon 3 3 0 1986 1,419 Ocean, Pool 2 2 0 1995 1,442 Lagoon 3 3 0 1986 1,534 Ocean 2 2 0 1996 1,540 Ocean 2 2 0 1993 1,442 Landscape 3 3 0 2001 1,957 Ocean, Pool 2 2 0 1986 1,171 Ocean, Pool 2 2 0 1986 1,171 Ocean, Pool 2 2 0 1993 1,442 Lagoon 2 2 0 1986 1,120 Landscape, Ocean 2 2 0 1993 1,442 Ocean, Pool 2 2 0 1986 1,171 Lagoon 3 3 0 1986 1,498 Ocean 1 2 0 1996 985 Ocean 1 2 0 1996 985 Ocean, Pool 1 2 0 1993 1,019 Ocean 1 2 0 1993 1,019 Ocean 1 2 0 1996 985 Ocean 1 1 1 1986 862 Ocean 1 2 0 1993 1,019 Ocean 1 1 1 1986 960 Ocean 1 1 1 1986 862 Lagoon, Landscape 1 1 1 1986 801 Lagoon 1 1 1 1986 801 Lagoon 1 1 1 1986 801 Ocean 3 3 0 1993 1,830 Ocean 3 3 0 1996 1,966 Ocean 1 2 0 1994 1,037 Ocean 1 2 0 1993 1,019 Lagoon, Landscape 2 2 0 1986 1,108 Lagoon 2 2 0 1986 1,108 Ocean 3 3 0 1994 1,935 Ocean 3 3 0 1993 1,830 Landscape, Ocean 3 3 0 1994 1,880 Ocean 3 3 0 1996 1,971 Ocean 2 2 0 1996 1,540 Ocean 2 2 0 1996 1,540 Wooded 2 2 1 2001 1,562 VIEW
Rising Mortgage Rates Do Not Lead to Falling Home Prices Source: Keeping Current Matters, March 2018
Home Equity Growing Across America
LIST PRICE CLOSE PRICE $2,995,000 $2,595,000 $1,899,000 $1,775,000 $1,299,000 $1,295,000 $1,275,000 $1,195,000 $1,185,000 $1,169,500 $1,070,000 $1,035,000 $925,000 $899,000 $799,000 $769,000 $749,000 $739,000 $729,999 $729,000 $649,000 $649,000 $639,000 $625,000 $615,000 $595,000 $579,000 $549,000 $535,000 $489,000 $459,000 $449,500 $445,500 $439,000 $429,000 $379,900 $340,000 $339,000 $315,000 $1,389,999 $1,385,000 $499,000 $419,900 $350,000 $349,500 $1,445,000 $1,399,000 $1,395,000 $1,199,000 $799,000 $749,500 $517,500
------------------------------------------------------------------------------------------$1,360,000 $1,400,000 $1,285,000 $1,155,000 $750,000 $724,000 $510,000
Source: Keeping Current Matters, March 2018
Forecasted Year Over Year % Change in Price by State KEY TAKEAWAYS WA 4.9%
VT (6.2%) ND 2.5%
MT 3.1% OR 5.7%
ID 4.0%
UT 3.8%
CA 9.1%
AZ 6.0%
WI 4.1%
SD 3.5%
WY 3.1% NV 7.8%
MN 3.4%
IA 4.1%
NE 3.9%
CO 5.2%
KS 4.1%
KY 3.8% 2.9%
OK 3.0%
NM 3.7%
4.8%
MO 4.6%
RI (3.4%) PA 4.6% OH 4.2%
IN
TX 2.1%
WV 4.0%
DC (3.7%)
SC 4.0% AL 4.4%
3. CoreLogic, the leading provider of real estate data and analytics, is forecasting a year-over-year 4.3% level of appreciation across the country.
GA 3.8%
LA 2.6% FL 6.4%
AK
UNITED STATES 4.3%
0.0% to 1.9%
4.0% to 5.9% HI 5.1%
> 6.0%
Actual Year Over Year % Change in Price by State WA 12.0%
VT (4.1%) ND 5.4%
MT 6.2% OR 6.9%
ID 10.7% WY 3.3% NV 11.0%
CA 8.2%
UT 10.7%
AZ
CO 8.0%
MN 5.7%
WI 5.9%
SD 4.3% IA 3.8%
NE 5.3% KS 3.9% OK 1.7%
NM 3.5%
IL 3.5%
PRICES* RATES
The graph on the right, based on data from the Insight Report, reveals what happened to home prices the last six times mortgage rates rose by at least 1%.
10/1993 to 12/1994
01/1996 to 11/1996
10/1995 to 05/2005
06/2003 to 06/2004
06/2006 to 07/2006
11/2012 to 12/2013
+2.38%
+1.20%
+1.81%
+1.06%
+1.18%
+1.11%
*SEASONALLY ADJUSTED RATE BETWEEN START AND END DATES
OH 6.2%
IN 5.3%
6.6%
ME 8.1% NH (5.8%) MA (6.2%) RI (8.2%)
PA 3.8%
KY 5.6%
WV 5.0%
VA 2.7%
CT (1.9%) NJ (3.5%) DE (3.9%) MD (3.6%) DC (2.5%)
NC 5.5%
TN
SC 5.3%
AR 3.5% MS 3.8%
TX 5.7%
NY 5.3%
MI 7.1%
MO 5.6%
AL 4.4%
GA 5.8%
LA 5.1% FL 5.8%
AK 1.6%
UNITED STATES 6.6%
< 0.0% 0.0% to 1.9% 2.0% to 3.9% 4.0% to 5.9%
HI 3.9%
+2%
4. Now is the perfect time to sell, buy and/or invest as the market is strong.
< 0.0%
2.0% to 3.9%
Active - On the Market Pending - Under Contract Sold - Closed Between January 1, 2018 and March 31, 2018
+3%
2. You can also see that the equity in your house might be more than you think.
NC 3.8%
4.7%
6.3%
They went on to reveal that the Freddie Mac National House Price Index is “unresponsive to movements in interest rates. In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
1. You can see that the real estate market is very strong across the whole country.
CT (6.1%) NJ (5.3%) DE (3.9%) MD (4.1%)
VA 4.1%
TN
AR 4.5% MS 3.1%
These two maps are very insightful for a number of reasons:
NH (5.8%) MA (4.7%)
NY 4.8%
MI 6.0%
IL 4.8%
ME 5.7%
Definitions for Listings
Many people believe that an increase in mortgage rates will cause a slowdown in purchases which would, in turn, lead to a fall in house values. Ultimately, however, prices are determined by supply and demand and while rising mortgage rates may slow demand, they also affect supply. Freddie Mac published an Insight Report titled Nowhere to Go but Up? How Increasing Mortgage Rates Could Affect Housing and from that report they said:“For current homeowners, the decision to buy a new home is typically linked to their decision to sell their current home...Because of this link, the financing costs of the existing mortgage are part of the homeowners decision of whether and when to move. Once financing costs for a new +13% +13% mortgage rise above the rate borrowers are paying for their current mortgage, borrowers would have to +11% give up below-market financing to sell their home. Instead, they may choose to delay both the sale of their existing home and the purchase of a new home to maintain the advantageous financing.” +7%
KEY TRENDS
> 6.0%
Leamington Villa Listings STATUS
VILLA COMPLEX
ADDRESS
Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Active Pending Pending Pending Pending Pending Pending Sold Sold Sold Sold Sold Sold Sold
Townhomes at Southshore Townhomes at Southshore Somerset Villas Somerset Villas Windsor Place I Villas Hampton Place Villas Hampton Place Villas South Shore Commons South Shore Commons Somerset Villas Barrington Arms Villas Windsor Place I Villas Barrington Arms Villas Barrington Arms Villas Abbington Villas Windsor Ct N Villas Abbington Villas Hampton Place Villas Windsor Place I Villas Wendover Dunes Villas Barrington Court Villas Barrington Court Villas Windsor Place I Villas Abbington Villas Windsor Place II Villas Barrington Arms Villas Barrington Park Villas Hampton Place Villas Hampton Place Villas Windsor Place II Villas Windsor Place II Villas Hampton Place Villas Barrington Court Villas Windsor Place II Villas Barrington Arms Villas Barrington Court Villas Barrington Park Villas Barrington Park Villas Barrington Park Villas Windsor Place II Villas Hampton Place Villas Windsor Ct S Villas Windsor Place I Villas Barrington Park Villas Barrington Park Villas Windsor Ct S Villas Windsor Place II Villas Windsor Ct S Villas Hampton Place Villas Hampton Place Villas Hampton Place Villas Wendover Dunes Villas
122 S Shore Drive Unit #122 156 S Shore Drive Unit #156 164 S Shore Drive Unit #406 164 S Shore Drive Unit #201 65 Ocean Lane Unit #309 41 Ocean Lane Unit #6108 47 Ocean Lane Unit #5108 125 S Shore Drive Unit #1201 135 S Shore Drive Unit #2101 164 S Shore Drive Unit #105 75 Ocean Lane Unit #404 65 Ocean Lane Unit #203 75 Ocean Lane Unit #305 75 Ocean Lane Unit #105 50 Ocean Lane Unit #108 51 Ocean Lane Unit #4305 50 Ocean Lane Unit #110 47 Ocean Lane Unit #5203 65 OCEAN Lane Unit #406 87 Ocean Lane Unit #8116 77 Ocean Lane Unit #110 77 Ocean Lane Unit #111 65 Ocean Lane Unit #107 50 Ocean Lane Unit #121 63 Ocean Lane Unit #2116 75 Ocean Lane Unit #401 7577 Ocean Lane Unit #702 47 Ocean Lane Unit #5204 47 Ocean Lane Unit #5501 63 Ocean Lane Unit #2314 63 Ocean Lane Unit #2414 47 Ocean Lane Unit #5104 77 Ocean Lane Unit #117 63 Ocean Lane Unit #2114 75 Ocean Lane Unit #406 77 Ocean Lane Unit #217 7577 Ocean Lane Unit #705 77 Ocean Lane Unit #713 7577 Ocean Lane Unit #712 63 Ocean Lane Unit #2219 47 Ocean Lane Unit #5209 57 Ocean Lane Unit #3403 65 Ocean Lane Unit #102 77 Ocean Lane Unit #603 7577 Ocean Lane Unit #607 57 Ocean Lane Unit #3107 63 Ocean Lane Unit #2220 57 Ocean Lane Unit #3408 41 Ocean Lane Unit #6401 47 Ocean Lane Unit #5306 41 Ocean Lane Unit #6103 89 Ocean Lane Unit #8128
KEY TRENDS
TOTAL FULL HALF YEAR APPROX. BEDROOMS BATHS BATHS BUILT SQ. FOOTAGE Ocean 6 6 0 1999 5,029 Ocean 5 5 0 1999 4,232 Ocean 3 3 1 1999 2,740 Ocean 3 3 1 1999 2,740 Ocean 3 3 0 1993 1,830 Ocean, Pool 3 3 0 1996 1,971 Ocean 3 3 0 1996 1,971 Landscape, Pool 3 3 0 2006 2,481 Landscape, Pool 3 3 0 2006 2,481 Ocean 3 3 1 1999 2,366 Ocean, Pool 3 3 0 1986 1,792 Landscape, Ocean 4 4 0 1993 2,130 Ocean 3 3 0 1986 1,792 Ocean, Pool 3 3 0 1986 1,792 Lagoon 3 3 0 1986 1,419 Ocean, Pool 2 2 0 1995 1,442 Lagoon 3 3 0 1986 1,534 Ocean 2 2 0 1996 1,540 Ocean 2 2 0 1993 1,442 Landscape 3 3 0 2001 1,957 Ocean, Pool 2 2 0 1986 1,171 Ocean, Pool 2 2 0 1986 1,171 Ocean, Pool 2 2 0 1993 1,442 Lagoon 2 2 0 1986 1,120 Landscape, Ocean 2 2 0 1993 1,442 Ocean, Pool 2 2 0 1986 1,171 Lagoon 3 3 0 1986 1,498 Ocean 1 2 0 1996 985 Ocean 1 2 0 1996 985 Ocean, Pool 1 2 0 1993 1,019 Ocean 1 2 0 1993 1,019 Ocean 1 2 0 1996 985 Ocean 1 1 1 1986 862 Ocean 1 2 0 1993 1,019 Ocean 1 1 1 1986 960 Ocean 1 1 1 1986 862 Lagoon, Landscape 1 1 1 1986 801 Lagoon 1 1 1 1986 801 Lagoon 1 1 1 1986 801 Ocean 3 3 0 1993 1,830 Ocean 3 3 0 1996 1,966 Ocean 1 2 0 1994 1,037 Ocean 1 2 0 1993 1,019 Lagoon, Landscape 2 2 0 1986 1,108 Lagoon 2 2 0 1986 1,108 Ocean 3 3 0 1994 1,935 Ocean 3 3 0 1993 1,830 Landscape, Ocean 3 3 0 1994 1,880 Ocean 3 3 0 1996 1,971 Ocean 2 2 0 1996 1,540 Ocean 2 2 0 1996 1,540 Wooded 2 2 1 2001 1,562 VIEW
Rising Mortgage Rates Do Not Lead to Falling Home Prices Source: Keeping Current Matters, March 2018
Home Equity Growing Across America
LIST PRICE CLOSE PRICE $2,995,000 $2,595,000 $1,899,000 $1,775,000 $1,299,000 $1,295,000 $1,275,000 $1,195,000 $1,185,000 $1,169,500 $1,070,000 $1,035,000 $925,000 $899,000 $799,000 $769,000 $749,000 $739,000 $729,999 $729,000 $649,000 $649,000 $639,000 $625,000 $615,000 $595,000 $579,000 $549,000 $535,000 $489,000 $459,000 $449,500 $445,500 $439,000 $429,000 $379,900 $340,000 $339,000 $315,000 $1,389,999 $1,385,000 $499,000 $419,900 $350,000 $349,500 $1,445,000 $1,399,000 $1,395,000 $1,199,000 $799,000 $749,500 $517,500
------------------------------------------------------------------------------------------$1,360,000 $1,400,000 $1,285,000 $1,155,000 $750,000 $724,000 $510,000
Source: Keeping Current Matters, March 2018
Forecasted Year Over Year % Change in Price by State KEY TAKEAWAYS WA 4.9%
VT (6.2%) ND 2.5%
MT 3.1% OR 5.7%
ID 4.0%
UT 3.8%
CA 9.1%
AZ 6.0%
WI 4.1%
SD 3.5%
WY 3.1% NV 7.8%
MN 3.4%
IA 4.1%
NE 3.9%
CO 5.2%
KS 4.1%
KY 3.8% 2.9%
OK 3.0%
NM 3.7%
4.8%
MO 4.6%
RI (3.4%) PA 4.6% OH 4.2%
IN
TX 2.1%
WV 4.0%
DC (3.7%)
SC 4.0% AL 4.4%
3. CoreLogic, the leading provider of real estate data and analytics, is forecasting a year-over-year 4.3% level of appreciation across the country.
GA 3.8%
LA 2.6% FL 6.4%
AK
UNITED STATES 4.3%
0.0% to 1.9%
4.0% to 5.9% HI 5.1%
> 6.0%
Actual Year Over Year % Change in Price by State WA 12.0%
VT (4.1%) ND 5.4%
MT 6.2% OR 6.9%
ID 10.7% WY 3.3% NV 11.0%
CA 8.2%
UT 10.7%
AZ
CO 8.0%
MN 5.7%
WI 5.9%
SD 4.3% IA 3.8%
NE 5.3% KS 3.9% OK 1.7%
NM 3.5%
IL 3.5%
PRICES* RATES
The graph on the right, based on data from the Insight Report, reveals what happened to home prices the last six times mortgage rates rose by at least 1%.
10/1993 to 12/1994
01/1996 to 11/1996
10/1995 to 05/2005
06/2003 to 06/2004
06/2006 to 07/2006
11/2012 to 12/2013
+2.38%
+1.20%
+1.81%
+1.06%
+1.18%
+1.11%
*SEASONALLY ADJUSTED RATE BETWEEN START AND END DATES
OH 6.2%
IN 5.3%
6.6%
ME 8.1% NH (5.8%) MA (6.2%) RI (8.2%)
PA 3.8%
KY 5.6%
WV 5.0%
VA 2.7%
CT (1.9%) NJ (3.5%) DE (3.9%) MD (3.6%) DC (2.5%)
NC 5.5%
TN
SC 5.3%
AR 3.5% MS 3.8%
TX 5.7%
NY 5.3%
MI 7.1%
MO 5.6%
AL 4.4%
GA 5.8%
LA 5.1% FL 5.8%
AK 1.6%
UNITED STATES 6.6%
< 0.0% 0.0% to 1.9% 2.0% to 3.9% 4.0% to 5.9%
HI 3.9%
+2%
4. Now is the perfect time to sell, buy and/or invest as the market is strong.
< 0.0%
2.0% to 3.9%
Active - On the Market Pending - Under Contract Sold - Closed Between January 1, 2018 and March 31, 2018
+3%
2. You can also see that the equity in your house might be more than you think.
NC 3.8%
4.7%
6.3%
They went on to reveal that the Freddie Mac National House Price Index is “unresponsive to movements in interest rates. In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
1. You can see that the real estate market is very strong across the whole country.
CT (6.1%) NJ (5.3%) DE (3.9%) MD (4.1%)
VA 4.1%
TN
AR 4.5% MS 3.1%
These two maps are very insightful for a number of reasons:
NH (5.8%) MA (4.7%)
NY 4.8%
MI 6.0%
IL 4.8%
ME 5.7%
Definitions for Listings
Many people believe that an increase in mortgage rates will cause a slowdown in purchases which would, in turn, lead to a fall in house values. Ultimately, however, prices are determined by supply and demand and while rising mortgage rates may slow demand, they also affect supply. Freddie Mac published an Insight Report titled Nowhere to Go but Up? How Increasing Mortgage Rates Could Affect Housing and from that report they said:“For current homeowners, the decision to buy a new home is typically linked to their decision to sell their current home...Because of this link, the financing costs of the existing mortgage are part of the homeowners decision of whether and when to move. Once financing costs for a new +13% +13% mortgage rise above the rate borrowers are paying for their current mortgage, borrowers would have to +11% give up below-market financing to sell their home. Instead, they may choose to delay both the sale of their existing home and the purchase of a new home to maintain the advantageous financing.” +7%
KEY TRENDS
> 6.0%
THE STATE
N T
Our Portfolio of Fine Homes in Leamington and Palmetto Dunes R PR O I V C E E M E
of the Leamington Villas Real Estate Market
IM
P
April 2018
KEY METRICS
22 Arthur Hills Court, Palmetto Dunes
4 Bedrooms | 3.5 Bathrooms | 3,500 Htd. SqFt | Lagoon/Golf View | $895,000
Million Dollar Views Located on a quiet cul-de-sac in Leamington Plantation, between the 11-mile lagoon and the 2nd and 3rd holes of the Arthur Hills Golf Course, is this magnificent home. Plentiful windows beckon sunlight to dance at your feet as you sashay through the formal living room and dining room down the hallway to an open family area, year-round Carolina room, and deck. The family room adjoins an oversized kitchen with a breakfast nook and extra large island. Abundant storage holds every woman’s treasures, and the oversized garage makes for the perfect ‘man-cave.’ This picturesque home is framed by lush landscaping and a wrap-around deck.
First Quarter of 2018 in Review
Leamington Villas’ first quarter of 2018 sales are significantly up from last year: seven villas closed, up from the three which closed in the first quarter of 2017. The first quarter total dollar volume of villas sold in 2018 was $7,184,000, up from $2,945,000 in the first quarter of 2017. Supply and demand: there are currently 39 villas listed for sale with an average of 2.33 villas selling per month over the last three months. That translates into a 16.71-month supply, considered by industry experts to be a buyer’s market. As of April 1st, 2018, there were six villas pending/under contract.
7
$1,155,000
96.33%
301
Total Sales
Median Price
Sale to List Price
Median Days on Market
Hilton Head Island Real Estate Market Overview
47 Ocean Lane # 5108, Palmetto Dunes (Hampton Place Villas) 3 Bedrooms | 3 Bathrooms | 1,971 Htd. SqFt | Ocean View | $1,275,000 Direct Oceanfront Views Await You! This beautiful 1st-floor villa offers breathtaking views of the Atlantic Ocean. Fabulous open floor plan with family room, dining area, breakfast nook, and kitchen with stainless steel appliances and granite counters. Luxury vinyl floors throughout main living area, travertine in the bathrooms, and carpet in bedrooms. Private balcony off the bedroom and family rooms. Hampton Place Villas offers residents two oceanfront swimming pools with sun decks, a spa, a fitness center, and a grill area. Under garage parking and private locked storage for your convenience. It’s a great investment property and can generate $85K - $90K of rental income a year.
COMMUNITY SPECIALIST The Clarke Team is your Leamington Villas Real Estate Specialist. Are you considering listing your home? Please contact
us for a complimentary, no-obligation home value consultation and let us show you how we utilize our digital presence, tailored platforms, and global network of advisors and premium buyers to sell your home.
Larry and Karen Clarke, Real Estate Advisors Main Shop | 800 Main Street, Hilton Head Island South Island Lounge | 7 New Orleans Road, Hilton Head Island Historic Bluffton Lounge | 6 Promenade Street, Suite 1001, Bluffton
Telephone • 843-290-5828 Email • clarketeam@evusa.com Website • www.clarketeam.evusa.com ©2018 Engel & Völkers. All rights reserved. Each brokerage is independently owned and operated. All information provided is deemed reliable but is not guaranteed and should be independently verified. If your property is currently represented by a real estate broker, this is not an attempt to solicit your listing. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
PRSRT STD US POSTAGE PAID Permit 73
Hilton Head Is., SC
ACTIVE LISTINGS ON HILTON HEAD ISLAND
636 How’s the Hilton Head Island Real Estate Market Doing?
YTD Hilton Head Island Home Sales YTD Through March 31 for Each Year
Year
Number of Homes Sold
Median Price
2013
149
$470,000
2014
169
$485,000
2015
181
$531,000
2016
183
$500,000
2017
177
$520,000
2018
211
$532,000
In 2018 the Hilton Head Island housing market enjoyed its best first quarter in 13 years, according to statistics from the Hilton Head Area Multiple Listing Service. As you can see from the chart to the left, the number of sales in the first quarter are up to 211, a 19% increase from 2017. The median price is also up, 2.2% above the 2017 first quarter median price, but is still 28% below the peak set in 2006. The median price of homes selling in the US is at its highest ever. It is expected that Island prices in the next several years will also rise into record setting territory. Thus, with prices still way below the peak and today’s historically low interest rates, it is an exceptional time to invest in real estate on the Island.
This information is based on data provided by Multiple Listing Service of Hilton Head Island, Inc. (“HHIMLS”) for the period January 2018 through April 4, 2018. HHIMLS does not guarantee and is not in any way responsible for its accuracy. Data provided by HHIMLS may not reflect all real estate activity in the market.