Hilton Head Island Market Report April 2014

Page 1

Monthly Indicators A RESEARCH TOOL PROVIDED BY THE HILTON HEAD AREA ASSOCIATION OF REALTORS速

April 2014

Quick Facts

The public has finally grown used to talk of a real estate market in recovery. With prices going up, people are starting to wonder if a new bubble is forming. Most metropolitan markets are somewhere between recovery and normalization. Supply is still tight but improving in some areas. What housing really needs is further job and wage growth to support healthy demand levels fueled by new household formations. New Listings in the Hilton Head region increased 9.4 percent to 571. Pending Sales were up 3.8 percent to 358. Inventory levels shrank 5.1 percent to 2,703 units. Prices marched higher. The Median Sales Price increased 6.3 percent to $279,500. Days on Market was down 13.8 percent to 105 days. Absorption rates improved as Months Supply of Inventory was down 11.4 percent to 8.6 months. April's job growth was above expectations. Growth is likely to accelerate through the year, but the types of jobs being created is also important. We're producing more low-wage jobs as opposed to high-wage jobs. That's not conducive to increasing the number of potential buyers. It also means less disposable income sloshing around. Even so, some local markets may pause but are unlikely to falter thanks to suppressed supply levels and an improving sales mix. Don't confuse temporarily weak demand indicators for stagnation.

+ 1.7%

+ 6.3%

- 5.1%

Change in Closed Sales

Change in Median Sales Price

Change in Inventory

Market Overview New Listings Pending Sales Closed Sales Days On Market Until Sale Median Sales Price Average Sales Price Percent of List Price Received Housing Affordability Index Inventory of Homes for Sale Months Supply of Inventory

2 3 4 5 6 7 8 9 10 11 12

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Data is Copyright 息 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS速 and South Carolina REALTORS速. Powered by 10K Research and Marketing. | 1


Market Overview Key market metrics for the current month and year-to-date figures.

Key Metrics

Historical Sparklines

New Listings 4-2011

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

4-2012

4-2013

2,127

+ 0.9%

345

358

+ 3.8%

1,290

1,297

+ 0.5%

303

308

+ 1.7%

1,055

990

- 6.2%

121

105

- 13.8%

123

110

- 10.4%

$263,000

$279,500

+ 6.3%

$239,000

$250,000

+ 4.6%

$359,394

$348,056

- 3.2%

$321,674

$333,182

+ 3.6%

95.1%

96.0%

+ 0.9%

95.4%

95.4%

- 0.0%

131

109

- 16.4%

144

122

- 15.1%

2,848

2,703

- 5.1%

--

--

--

9.7

8.6

- 11.4%

--

--

--

4-2014

Months Supply of Homes for Sale 4-2011

2,109

4-2014

Inventory of Homes for Sale 4-2011

+ 9.4%

4-2014

Housing Affordability Index 4-2011

571

4-2014

Percent of List Price Received 4-2011

522

4-2014

Average Sales Price 4-2011

+/–

4-2014

Median Sales Price 4-2011

YTD 2013 YTD 2014

4-2014

Days on Market Until Sale 4-2011

+/–

4-2014

Closed Sales 4-2011

4-2014

4-2014

Pending Sales 4-2011

4-2013

4-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 2


New Listings A count of the properties that have been newly listed on the market in a given month.

April

Year To Date 548

Current Year

+/–

May

448

450

+0.4%

June

417

428

+2.6%

July

401

448

+11.7%

August

456

446

-2.2%

September

445

432

-2.9%

October

429

507

+18.2%

November

367

371

+1.1%

December

283

274

-3.2%

January

507

481

-5.1%

February

518

473

-8.7%

March

562

602

+7.1%

April

522

571

+9.4%

12-Month Avg

446

457

+2.4%

571 522 2,075

2012

Prior Year

Month

-4.7%

+9.4%

2013

2014

2012

2,127

2,109

+1.6%

+0.9%

2013

2014

Historical New Listing Activity 800 700 600 500 400 300 200 100 0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 3


Pending Sales A count of the properties on which contracts have been accepted in a given month.

April

Year To Date 352

2012

345

1,297

1,290

358 1,179

-2.0%

+3.8%

2013

2014

2012

Prior Year

Current Year

+/–

May

315

348

+10.5%

June

303

354

+16.8%

July

273

374

+37.0%

August

307

308

+0.3%

September

243

305

+25.5%

October

308

322

+4.5%

November

274

266

-2.9%

December

212

201

-5.2%

January

296

260

-12.2%

February

325

307

-5.5%

March

324

372

+14.8%

April

345

358

+3.8%

12-Month Avg

294

315

+7.1%

Month

+9.4%

+0.5%

2013

2014

Historical Pending Sales Activity 400 350 300 250 200 150 100 50 0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 4


Closed Sales A count of the actual sales that have closed in a given month.

April

Year To Date 303

308

1,055

2012

990

955

274

+10.6%

+1.7%

2013

2014

2012

Prior Year

Current Year

+/–

May

332

351

+5.7%

June

346

341

-1.4%

July

279

334

+19.7%

August

304

374

+23.0%

September

252

295

+17.1%

October

283

316

+11.7%

November

307

271

-11.7%

December

247

283

+14.6%

January

217

232

+6.9%

February

229

188

-17.9%

Month

+10.5%

-6.2%

2013

2014

March

306

262

-14.4%

April

303

308

+1.7%

12-Month Avg

284

296

+4.6%

Historical Closed Sales Activity 400 350 300 250 200 150 100 50 0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 5


Days on Market Until Sale Average number of days between when a property is listed and when an offer is accepted in a given month.

April

Year To Date

Prior Year

Current Year

+/–

May

129

122

-5.4%

June

125

118

-5.1%

Month

152 139 121

123 110

105

2012

-20.0%

-13.8%

2013

2014

2012

-11.4%

-10.4%

2013

2014

July

124

125

+0.6%

August

110

111

+1.1%

September

121

105

-13.2%

October

130

117

-9.7%

November

122

124

+1.7%

December

115

95

-17.4%

January

127

107

-15.5%

February

124

112

-9.7%

March

121

118

-2.6%

April

121

105

-13.8%

12-Month Avg

122

114

-7.2%

Historical Days on Market Until Sale 180

160

140

120

100

80

60 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 6


Median Sales Price Median price point for all closed sales, not accounting for seller concessions, in a given month.

April

Year To Date $279,500 $263,000 $239,000

2012

$250,000

$219,000

$210,000

+25.2%

+6.3%

2013

2014

2012

Prior Year

Current Year

+/–

May

$233,000

$275,625

+18.3%

June

$230,000

$252,500

+9.8%

July

$220,000

$299,000

+35.9%

August

$212,500

$260,964

+22.8%

September

$230,000

$245,000

+6.5%

October

$235,000

$249,833

+6.3%

November

$233,000

$250,000

+7.3%

December

$238,070

$250,000

+5.0%

January

$245,745

$220,600

-10.2%

February

$228,000

$250,483

+9.9%

March

$225,000

$259,000

+15.1%

April

$263,000

$279,500

+6.3%

12-Month Med

$230,000

$260,000

+13.0%

Month

+9.1%

+4.6%

2013

2014

Historical Median Sales Price $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

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Average Sales Price Average sales price for all closed sales, not accounting for seller concessions, in a given month.

April $345,660

2012

Year To Date $359,394

$328,638

$321,674

$348,056

+ 4.0%

- 3.2%

2013

2014

2012

Prior Year

Current Year

+/–

May

$311,333

$373,557

+20.0%

June

$310,184

$337,647

+8.9%

July

$286,352

$363,957

+27.1%

August

$266,470

$348,269

+30.7%

September

$358,255

$338,314

-5.6%

October

$347,171

$329,877

-5.0%

November

$296,461

$341,307

+15.1%

December

$324,491

$341,476

+5.2%

January

$322,692

$290,536

-10.0%

February

$294,120

$335,751

+14.2%

March

$304,274

$352,004

+15.7%

April

$359,394

$348,056

-3.2%

12-Month Avg

$314,405

$343,485

+9.2%

Month $333,182

- 2.1%

+ 3.6%

2013

2014

Historical Average Sales Price $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 8


Percent of List Price Received Percentage found when dividing a property’s sales price by its last list price, then taking the average for all properties sold in a given month, not accounting for seller concessions.

April

93.7%

2012

Year To Date

95.1%

96.0%

+1.6%

+0.9%

2013

2014

95.4%

93.9%

2012

95.4%

+1.7%

-0.0%

2013

2014

Month

Prior Year

Current Year

+/–

May

94.9%

95.8%

+1.0%

June

94.9%

95.2%

+0.3%

July

94.8%

95.1%

+0.4%

August

94.8%

95.5%

+0.7%

September

94.0%

95.5%

+1.6%

October

95.0%

95.6%

+0.6%

November

95.5%

94.6%

-0.9%

December

95.2%

95.0%

-0.3%

January

95.1%

95.2%

+0.2%

February

95.3%

95.2%

-0.1%

March

96.1%

95.1%

-1.1%

April

95.1%

96.0%

+0.9%

12-Month Avg

95.1%

95.3%

+0.3%

Historical Percent of List Price Received 100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 9


Housing Affordability Index This index measures housing affordability for the region. An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

April

Year To Date 147

Month May

144

154

122

131 109

2012

-15.0%

-16.4%

2013

2014

2012

-2.5%

-15.1%

2013

2014

Prior Year

Current Year

+/–

140

120

-14.2%

June

143

124

-13.1%

July

151

106

-30.2%

August

156

119

-23.4%

September

147

129

-11.9%

October

143

127

-11.3%

November

145

134

-7.5%

December

143

128

-10.4%

January

141

137

-3.0%

February

148

122

-17.8%

March

150

118

-21.2%

April

131

109

-16.4%

12-Month Avg

145

123

-15.0%

Historical Housing Affordability Index 180 160 140 120 100 80 60 40 20 0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 10


Inventory of Homes for Sale The number of properties available for sale in active status at the end of a given month.

April 3,105 2,848

2012

2,703

-8.3%

-5.1%

2013

2014

Month

Prior Year

Current Year

+/–

May

3,045

2,797

-8.1%

June

2,957

2,720

-8.0%

July

2,901

2,640

-9.0%

August

2,862

2,616

-8.6%

September

2,880

2,561

-11.1%

October

2,833

2,572

-9.2%

November

2,768

2,519

-9.0%

December

2,607

2,414

-7.4%

January

2,643

2,478

-6.2%

February

2,705

2,523

-6.7%

March

2,804

2,632

-6.1%

April

2,848

2,703

-5.1%

12-Month Avg

2,821

2,598

-7.9%

Historical Inventory of Homes for Sale 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 11


Months Supply of Inventory The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months.

April 12.1 9.7 8.6

-19.9%

-11.4%

2013

2014

2012

Month

Prior Year

Current Year

+/–

May

11.6

9.4

-18.9%

June

11.2

9.0

-19.0%

July

11.0

8.5

-22.1%

August

10.5

8.5

-19.8%

September

10.5

8.1

-22.1%

October

10.1

8.1

-19.1%

November

9.7

8.0

-17.5%

December

9.2

7.7

-16.1%

January

9.1

8.0

-12.8%

February

9.2

8.2

-11.3%

March

9.5

8.4

-11.9%

April

9.7

8.6

-11.4%

12-Month Avg

10.1

8.4

-17.1%

Historical Months Supply of Inventory 30

25

20

15

10

5

0 1-2007

1-2008

1-2009

1-2010

1-2011

1-2012

1-2013

1-2014

Data is Copyright © 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Powered by 10K Research and Marketing. | Click for Cover Page | 12


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