Hilton Head Real Estate Market Report August 2014

Page 1

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

August 2014

Quick Facts

Most local markets continue to recover from a soft patch earlier this year. The macro trend is still positive; the micro trend involves more moderate pinching up and down the month-to-month timeline. This is not uncommon in a balanced market, but it's been so long since we've seen one that we're watching it with perhaps too much trepidation. Metrics to watch include inventory and prices, but also days on market, months' months supply and percent of list price received at sale sale. Declines in pending and closed sales activity may reflect strong decreases at lower price points and may not indicate softening demand. New Listings in the Hilton Head region decreased 19.7 percent to 363. Pending Sales were down 7.2 percent to 283. Inventory levels fell 1.3 percent to 2,602 units. Prices were fairly stable. The Median Sales Price decreased 1.3 percent to $257,458. Days on Market was up 13.0 percent to 126 days. Sellers were encouraged as Months Supply of Inventory was down 0.2 percent to 8.5 months. Sustained job growth, lower mortgage rates and a slow rise in the number of homes for sale appear to have unleashed at least some pent-up demand. Since housing demand relies heavily on an economy churning out good jobs, it's encouraging to see second quarter GDP growth revised upwards to a 4.2 percent annualized rate and stronger-than-expected job growth in recent months. Further improvements are still needed by way of wage growth and consumer confidence but recovery continues.

- 9.9%

- 1.3%

- 1.3%

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 8-2011

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

8-2012

8-2013

3,865

- 0.7%

305

283

- 7.2%

2,669

2,574

- 3.6%

374

337

- 9.9%

2,455

2,320

- 5.5%

111

126

+ 13.0%

121

111

- 8.1%

$260,964

$257,458

- 1.3%

$256,765

$255,000

- 0.7%

$348,269

$352,955

+ 1.3%

$341,072

$341,632

+ 0.2%

95.5%

94.8%

- 0.7%

95.4%

95.3%

- 0.1%

119

122

+ 2.0%

121

123

+ 1.3%

2,636

2,602

- 1.3%

--

--

--

8.5

8.5

- 0.2%

--

--

--

8-2014

Months Supply of Homes for Sale 8-2011

3,892

8-2014

Inventory of Homes for Sale 8-2011

- 19.7%

8-2014

Housing Affordability Index 8-2011

363

8-2014

Percent of List Price Received 8-2011

452

8-2014

Average Sales Price 8-2011

+/–

8-2014

Median Sales Price 8-2011

YTD 2013 YTD 2014

8-2014

Days on Market Until Sale 8-2011

+/–

8-2014

Closed Sales 8-2011

8-2014

8-2014

Pending Sales 8-2011

8-2013

8-2014

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.

August 456

Year To Date 452 3,798

3,892

3,865

363

2012

-0.9%

-19.7%

2013

2014

2012

Prior Year

Current Year

+/–

September

445

433

-2.7%

October

429

508

+18.4%

November

367

373

+1.6%

December

283

275

-2.8%

January

507

486

-4.1%

February

518

477

-7.9%

March

565

613

+8.5%

April

522

618

+18.4%

May

451

433

-4.0%

June

428

450

+5.1%

July

449

425

-5.3%

August

452

363

-19.7%

12-Month Avg

451

455

+0.7%

Month

+2.5%

-0.7%

2013

2014

Historical New Listing Activity 800

700

600

500

400

300

200 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.

August 307

Year To Date 2,669

305 283

2012

-0.7%

-7.2%

2013

2014

2,574

2,377

2012

Prior Year

Current Year

+/–

September

243

302

+24.3%

October

308

322

+4.5%

November

274

266

-2.9%

December

212

201

-5.2%

January

296

254

-14.2%

February

325

299

-8.0%

March

324

358

+10.5%

April

345

355

+2.9%

May

348

339

-2.6%

June

352

353

+0.3%

Month

+12.3%

-3.6%

2013

2014

July

374

333

-11.0%

August

305

283

-7.2%

12-Month Avg

309

305

-1.1%

Historical Pending Sales Activity 400 350 300 250 200 150 100 50 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.

August

Year To Date 374 337

304

2012

2,455

2,320

2,216

+23.0%

-9.9%

2013

2014

2012

Prior Year

Current Year

+/–

September

252

295

+17.1%

October

283

316

+11.7%

Month

+10.8%

-5.5%

2013

2014

November

307

271

-11.7%

December

247

283

+14.6%

January

217

232

+6.9%

February

229

188

-17.9%

March

306

262

-14.4%

April

303

308

+1.7%

May

351

312

-11.1%

June

341

343

+0.6%

July

334

338

+1.2%

August

374

337

-9.9%

12-Month Avg

295

290

-0.9%

Historical Closed Sales Activity 400 350 300 250 200 150 100 50 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.

August

Year To Date 129

126

121 110

2012

111

111

+1.1%

+13.0%

2013

2014

2012

Prior Year

Current Year

+/–

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%

Month

-6.7%

-8.1%

2013

2014

April

121

105

-13.8%

May

122

108

-11.2%

June

118

109

-7.9%

July

125

103

-17.5%

August

111

126

+13.0%

12-Month Avg

121

111

-8.6%

Historical Days on Market Until Sale 170 160 150 140 130 120 110 100 90 80 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.

August

Year To Date $260,964

$257,458

$256,765

2012

$255,000

$222,000

$212,500

+22.8%

-1.3%

2013

2014

2012

Prior Year

Current Year

+/–

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%

May

$275,625

$249,000

-9.7%

June

$252,500

$286,000

+13.3%

July

$299,000

$248,000

-17.1%

August

$260,964

$257,458

-1.3%

12-Month Med

$249,783

$252,750

+1.2%

Month

+15.7%

-0.7%

2013

2014

Historical Median Sales Price $450,000

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000 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 | 7


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

August

Year To Date $348,269

$352,955

$341,632

$341,072 $309,208

$266,470

2012

+ 30.7%

+ 1.3%

2013

2014

2012

Prior Year

Current Year

+/–

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%

May

$373,557

$326,511

-12.6%

June

$337,647

$383,359

+13.5%

July

$363,957

$326,936

-10.2%

August

$348,269

$352,955

+1.3%

12-Month Avg

$337,782

$340,243

+0.7%

Month

+ 10.3%

+ 0.2%

2013

2014

Historical Average Sales Price $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 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.

August

94.8%

2012

Year To Date

95.5%

94.8%

+0.7%

-0.7%

2013

2014

94.4%

2012

95.4%

95.3%

+1.0%

-0.1%

2013

2014

Month

Prior Year

Current Year

+/–

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%

May

95.8%

94.8%

-1.1%

June

95.2%

95.7%

+0.5%

July

95.1%

95.5%

+0.5%

August

95.5%

94.8%

-0.7%

12-Month Avg

95.3%

95.3%

-0.0%

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.

August

Year To Date

Month

149

September

156 123

121 119

2012

122

-23.4%

+2.0%

2013

2014

2012

-18.6%

+1.3%

2013

2014

Prior Year

Current Year

+/–

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%

May

120

126

+4.6%

June

124

109

-12.0%

July

106

126

+19.3%

August

119

122

+2.0%

12-Month Avg

135

124

-7.1%

Historical Housing Affordability Index 180 160 140 120 100 80 60 40 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.

August

2,866

2,636

2012

2,602

-8.0%

-1.3%

2013

2014

Month

Prior Year

Current Year

+/–

September

2,884

2,585

-10.4%

October

2,837

2,597

-8.5%

November

2,772

2,547

-8.1%

December

2,611

2,446

-6.3%

January

2,647

2,521

-4.8%

February

2,709

2,580

-4.8%

March

2,811

2,714

-3.5%

April

2,855

2,837

-0.6%

May

2,805

2,788

-0.6%

June

2,730

2,724

-0.2%

July

2,651

2,669

+0.7%

August

2,636

2,602

-1.3%

12-Month Avg

2,746

2,634

-4.0%

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 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.

August 10.6 8.5

2012

8.5

-19.2%

-0.2%

2013

2014

Month

Prior Year

Current Year

+/–

September

10.5

8.2

-21.3%

October

10.1

8.2

-18.2%

November

9.7

8.1

-16.5%

December

9.2

7.8

-14.9%

January

9.2

8.1

-11.1%

February

9.2

8.4

-8.9%

March

9.6

8.7

-8.5%

April

9.7

9.1

-6.2%

May

9.5

9.0

-5.1%

June

9.1

8.8

-3.5%

July

8.6

8.7

+1.3%

August

8.5

8.5

-0.2%

12-Month Avg

9.4

8.5

-9.8%

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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