7 minute read
Stable Market
STABILIZED MARKET
NEW BUSINESSES AND POPULATION GROWTH TO IMPACT REAL ESTATE IN 2023
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BY DEAN ROWLAND
Affordability for homebuyers continues to be a stumbling block for closing on a dream house or any house that comes close to their dream in the Lowcountry.
Home mortgage rates climbed for the third time this year through September and nudged over the 6 percent mark for the first time since 2008.
Ouch.
Existing home sales declined for the seventh consecutive month. Look no further for cause/effect than monthly mortgage payments jumping 55 percent from a year ago.
The good news — kind of — is that the median home price rose 15 percent from last September to $453,060. That’s good news for sellers, not so good news for potential buyers.
“Coming off the record-breaking sales of the last three years, the market has shown signs of returning to a more consistent market,” said Cynthia Creamer, president of the South Carolina Realtors organization. “Properties that are ‘move-in ready’ are most desirable and move quickly off the market.”
Home prices are high, mortgage rates are high, sales are down and inventory is rising.
What’s it all mean?
“Rising consumer prices and higher mortgage interest rates will cool the real estate market across the country,” the former president of the Hilton Head Area Association of Realtors said. “What is different in our region is approximately 40-50 percent of the sales are consistently cash buyers. The concern is the affordability for the first-time buyer and those who desire or need to move up to a larger home.”
Here’s the current market for median home sales, as of September, according to the Hilton Head Area of Realtors: • Regional Market: $453,060, +15 percent from September 2021, closed sales 459. -13.1%. • Hilton Head Island detached: $925,000, +24.4%; closed sales 71, -28.3%. • Hilton Head Island condos/villas: $408,000, +4.2 percent; closed sales 85, -12.0%. • Bluffton: $452,500, +22.3%; closed sales 201, -14.5%. • Hardeeville: $330,101, -4.5%; closed sales 43, +26.5%
“Properties are staying on the market longer than what was experienced at the beginning of 2022 and multiple offers have decreased,” she said, which accounts to rising inventory and longer days on the market.
Days on market rose to 125 days recently, up 37.4 percent from last year. Homes for sale stand at 938, up 25.7 percent over last year.
“While inventory has begun to inch up, it is not bringing us closer to a desired six-month inventory,” Creamer said. “Supply continues to be low, but demand from buyers has shifted the last half of this year. Sellers will need to assess their goals and urgency as we see the market stabilize.
“Businesses are expanding, and new businesses are locating to Bluffton and Hardeeville. New developments add to the available inventory. Real estate is circular, the last few years were not sustainable. Therefore, given the current economy, we anticipate the market to stabilize.”
With new businesses making the Lowcountry home, supply of inventory rose 63.6 percent over September 2021 to 1.8 percent.
Earlier this year the U.S. Census Bureau said Bluffton was No. 1 and Hardeeville No. 8 among the fastest-growing cities based on population. Hardeeville saw a 14.3 percent increase and Bluffton’s was up 12 percent.
Along with new and expanding businesses in the Hilton Head area come new residents and a growing population.
“We are fortunate to live in an area that is highly desirable,” said Creamer of Dunes Real Estate. “Hilton Head Island was just named “America’s favorite island” by Conde Nast for the sixth year in a row. It is our tourists who fall in love with the area who become our next residents.”
As the market continues to stabilize, what’s ahead in 2023?
“The median sales price in our region is $480,000, up 20 percent year to date,” she said. “We anticipate the market to return to a more steady and realistic growth in 2023. What that will be remains to be seen, as there are many factors, including the economy, interest rates and demand that impact price.”
SIX OAKS CEMETERY TO BE PART OF WREATHS ACROSS AMERICA
BY TIM WOOD
Some folks would call what John Hunter does this time each year a major undertaking and a huge amount of stress.
But for the administrator at Six Oaks Cemetery on the island, the goal of filling every veteran’s grave with a wreath is an honor.
“These veterans and the veteran families have given so much and asked so little,” Hunter said. “Getting to do this is a blessing in my life.”
Hunter and his army of volunteers are collecting donated wreaths as part of the national Wreaths Across America program. More than 3,500 locations in the U.S. and worldwide will set up the wreaths at cemeteries and community centers at 12 p.m. on Dec. 17.
“It’s just an amazing, coordinated effort and we are so proud to be just a small part of it,” Hunter said.
WAA began 26 years ago when Morrill and Karen Worcester were looking to donate excess wreaths from their tree farm in Columbia Falls, Maine. That one gesture and the event it led to at Arlington National Cemetery spawned a non-profit organization and movement with the goal of placing a wreath on every U.S. veteran’s grave during the holidays.
For Hunter, the event is a way to honor his father, a career Army officer and Korean War veteran.
“Dad died when I was just 5 years old, but our entire
family is built around service. My three uncles, his brothers, all served in the Army,” he said. “My Dad served all over the world, and I think of what it means for me to see that wreath on his grave. It’s truly an honor to witness other families seeing their wreaths.”
Hunter’s journey to Six Oaks began 29 years ago when the Alabama native took a job as administrative assistant to Lowcountry legend Charles Fraser. A few months into the gig, Fraser came to his office and asked him to take over administration of Six Oaks.
“I never thought I’d be a cemetery administrator. But 26 years later it’s been a wonderful life being able to give folks closure and to celebrate the life behind those who die,” Hunter said.
This is the 13th year that Hunter is leading the WAA effort at Six Oaks.
“I just remember when Wreaths Across America first called,” he said. “I said, ‘I don’t care if I have to pay for them all myself, we will make this happen.’ ”
Hunter delivered on his promise without having to foot the bill. Hundreds of area families stepped up to buy a wreath that first year and the effort has grown each year.
His crew of volunteers, many themselves family members of veterans, has close to 1,100 wreaths for the veterans interred at the cemetery.
“It’s quite a sight to see. Between all of us, we get all the wreaths on floral racks at veteran sites in just under 10 minutes,” Hunter said. “We have it down to an art at this point. This whole operation, to see the truckers donating time around the country to deliver the wreaths, to see all the folks that give here in the Lowcountry, it’s truly inspiring. The people here never cease to amaze me.”
Six Oaks is one of two cemetery sites in Beaufort County to participate in the event. Beaufort National Cemetery has collected more than 7,500 wreaths as of press time on way to a goal of 25,000 wreaths. A contingent of Sun City veterans had collected close to 4,000 wreaths before Thanksgiving — more than 12 times their goal for this year.
Hunter is committed to several memorial events throughout the year. His volunteers also place flags on the vets’ graves a week ahead of Memorial Day, July 4th, Patriots Day and Veterans Day.
“You can never do enough to honor these heroes,” Hunter said. “I think folks want to be part of something bigger than themselves and they prove it here every year.”
The wreaths will be on display at Six Oaks Cemetery for a month after the Dec. 17 ceremony.
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