Hilton Head Area Market Report - November 2018

Page 1

Monthly Indicators November 2018 The booming U.S. economy continues to prop up home sales and new listings in much of the nation, although housing affordability remains a concern. Historically, housing is still relatively affordable. Although Freddie Mac recently reported that the 30-year fixed rate is at its highest average in seven years, reaching 4.94 percent, average rates were 5.97 percent ten years ago, 6.78 percent 20 years ago and 10.39 percent 30 years ago. Nevertheless, affordability concerns are causing a slowdown in home price growth in some markets, while price reductions are becoming more common. New Listings were up 11.0 percent to 533. Pending Sales increased 1.0 percent to 396. Inventory grew 4.6 percent to 2,309 units. Prices were still soft as Median Sales Price was down 0.4 percent to $323,858. Days on Market decreased 9.6 percent to 132 days. Months Supply of Inventory was down 5.4 percent to 5.3 months, the tenth consecutive month of year-over-year declines. The Bureau of Labor Statistics recently reported that the national unemployment rate was at 3.7 percent. Low unemployment has helped the housing industry during this extensive period of U.S. economic prosperity. Home buying and selling activity relies on gainful employment. It also relies on demand, and builders are showing caution by breaking ground on fewer single-family home construction projects in the face of rising mortgage rates and fewer showings.

Quick Facts - 2.2%

- 0.4%

- 5.4%

One-Year Change in Closed Sales

One-Year Change in Median Sales Price

One-Year Change in Months Supply

A research tool provided by the Hilton Head Association of REALTORS®. Percent changes are calculated using rounded figures.

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

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 1


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

Key Metrics

Historical Sparkbars

New Listings 11-2016

11-2017

11-2016

11-2017

11-2018

11-2016

11-2017

11-2018

11-2016

11-2017

11-2018

Closed Sales

Days on Market

Median Sales Price 11-2017

11-2017

11-2017

11-2017

11-2017

11-2017

+ 11.0%

6,042

6,740

+ 11.6%

392

396

+ 1.0%

4,529

4,979

+ 9.9%

369

361

- 2.2%

4,280

4,792

+ 12.0%

146

132

- 9.6%

150

134

- 10.7%

$325,000

$323,858

- 0.4%

$300,000

$313,615

+ 4.5%

$380,569

$396,344

+ 4.1%

$386,851

$405,760

+ 4.9%

96.6%

96.5%

- 0.1%

96.2%

96.6%

+ 0.4%

73

73

0.0%

79

76

- 3.8%

2,207

2,309

+ 4.6%

--

--

--

5.6

5.3

- 5.4%

--

--

--

11-2018

Months Supply of Inventory 11-2016

533

11-2018

Inventory of Homes for Sale 11-2016

480

Percent Change

11-2018

Housing Affordability Index 11-2016

YTD 2017 YTD 2018

11-2018

Pct. of List Price Received 11-2016

Percent Change

11-2018

Average Sales Price 11-2016

11-2018

11-2018

Pending Sales

11-2016

11-2017

11-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 2


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

November

New Listings

Year to Date 533 480

6,740 5,873

6,042

388

2016

2017

2018

2016

2017

2018

- 1.3%

+ 23.7%

+ 11.0%

+ 5.5%

+ 2.9%

+ 11.6%

Prior Year

Percent Change

+18.9%

December 2017

327

275

January 2018

493

532

-7.3%

February 2018

650

544

+19.5%

March 2018

774

745

+3.9%

April 2018

673

559

+20.4%

May 2018

669

583

+14.8%

June 2018

618

564

+9.6%

July 2018

541

503

+7.6%

August 2018

674

523

+28.9%

September 2018

441

434

+1.6%

October 2018

674

575

+17.2%

November 2018

533

480

+11.0%

12-Month Avg

589

526

+11.9%

Historical New Listings by Month 800

700

600

500

400

300

200 01-2014

01-2015

01-2016

01-2017

01-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 3


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

November

Year to Date 392

Pending Sales

396 4,529

4,979

3,976

294

2016

2017

2018

2016

2017

2018

- 9.3%

+ 33.3%

+ 1.0%

+ 1.2%

+ 13.9%

+ 9.9%

Prior Year

Percent Change

December 2017

286

212

+34.9%

January 2018

369

365

+1.1%

February 2018

408

387

+5.4%

March 2018

566

504

+12.3%

April 2018

551

415

+32.8%

May 2018

548

471

+16.3%

June 2018

440

448

-1.8%

July 2018

498

414

+20.3%

August 2018

451

442

+2.0%

September 2018

321

257

+24.9%

October 2018

431

434

-0.7%

November 2018

396

392

+1.0%

12-Month Avg

439

395

+11.1%

Historical Pending Sales by Month 600

500

400

300

200 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 4


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

November

Closed Sales

Year to Date 369

361

329

4,792 4,280

3,925

2016

2017

2018

2016

2017

2018

+ 32.7%

+ 12.2%

- 2.2%

+ 6.2%

+ 9.0%

+ 12.0%

Prior Year

Percent Change

December 2017

416

324

+28.4%

January 2018

312

242

+28.9%

February 2018

305

281

+8.5%

March 2018

447

413

+8.2%

April 2018

486

365

+33.2%

May 2018

561

475

+18.1%

June 2018

582

510

+14.1%

July 2018

453

418

+8.4%

August 2018

500

437

+14.4%

September 2018

375

381

-1.6%

October 2018

410

389

+5.4%

November 2018

361

369

-2.2%

12-Month Avg

434

384

+13.1%

Historical Closed Sales by Month 600

500

400

300

200 05-2014

05-2015

05-2016

05-2017

05-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 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.

November 155

Days on Market

Year to Date 150

141

146

134

132

2016

2017

2018

2016

2017

2018

+ 6.2%

- 5.8%

- 9.6%

- 6.0%

+ 6.4%

- 10.7%

Prior Year

Percent Change

-2.0%

December 2017

150

153

January 2018

153

160

-4.4%

February 2018

144

168

-14.3%

March 2018

138

154

-10.4%

April 2018

135

143

-5.6%

May 2018

137

143

-4.2%

June 2018

129

151

-14.6%

July 2018

123

152

-19.1%

August 2018

123

142

-13.4%

September 2018

131

155

-15.5%

October 2018

133

148

-10.1%

November 2018

132

146

-9.6%

12-Month Avg*

135

150

-10.0%

* Average Days on Market of all properties from December 2017 through November 2018. This is not the average of the individual figures above.

Historical Days on Market Until Sale by Month 170

160

150

140

130

120 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 6


Median Sales Price Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month.

November

Median Sales Price

Year to Date $325,000

$323,858

$290,500

$290,000

$300,000

$313,615

2016

2017

2018

2016

2017

2018

+ 4.8%

+ 11.9%

- 0.4%

+ 5.5%

+ 3.4%

+ 4.5%

Prior Year

Percent Change

December 2017

$312,000

$299,000

+4.3%

January 2018

$328,000

$298,750

+9.8%

February 2018

$306,300

$280,020

+9.4%

March 2018

$299,111

$295,000

+1.4%

April 2018

$311,770

$306,340

+1.8%

May 2018

$320,000

$299,000

+7.0%

June 2018

$308,210

$300,148

+2.7%

July 2018

$295,000

$290,000

+1.7%

August 2018

$315,000

$295,000

+6.8%

September 2018

$310,000

$295,000

+5.1%

October 2018

$335,000

$316,500

+5.8%

November 2018

$323,858

$325,000

-0.4%

12-Month Med*

$313,558

$300,000

+4.5%

* Median Sales Price of all properties from December 2017 through November 2018. This is not the median of the individual figures above.

Historical Median Sales Price by Month $340,000

$320,000

$300,000

$280,000

$260,000

$240,000

$220,000 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 7


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

November $381,318

Avg. Sales Price

Year to Date $380,569

$396,344

$375,196

$386,851

$405,760

2016

2017

2018

2016

2017

2018

+ 11.0%

- 0.2%

+ 4.1%

+ 7.0%

+ 3.1%

+ 4.9%

Prior Year

Percent Change

+3.8%

December 2017

$396,353

$381,851

January 2018

$408,873

$374,552

+9.2%

February 2018

$383,729

$347,474

+10.4%

March 2018

$388,588

$384,744

+1.0%

April 2018

$401,787

$393,075

+2.2%

May 2018

$403,591

$393,330

+2.6%

June 2018

$429,090

$383,756

+11.8%

July 2018

$411,965

$380,892

+8.2%

August 2018

$386,715

$394,202

-1.9%

September 2018

$401,891

$407,311

-1.3%

October 2018

$441,233

$399,639

+10.4%

November 2018

$396,344

$380,569

+4.1%

12-Month Avg*

$404,180

$385,116

+5.0%

* Avg. Sales Price of all properties from December 2017 through November 2018. This is not the average of the individual figures above.

Historical Average Sales Price by Month $460,000

$440,000

$420,000

$400,000

$380,000

$360,000

$340,000

$320,000 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 8


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

November

95.5%

Pct. of List Price Received

Year to Date

96.6%

96.5%

96.2%

95.8%

96.6%

2016

2017

2018

2016

2017

2018

- 0.6%

+ 1.2%

- 0.1%

+ 0.1%

+ 0.4%

+ 0.4%

Prior Year

Percent Change

December 2017

96.1%

96.2%

-0.1%

January 2018

96.7%

95.6%

+1.2%

February 2018

96.2%

95.9%

+0.3%

March 2018

96.4%

95.6%

+0.8%

April 2018

96.4%

96.4%

0.0%

May 2018

96.9%

96.1%

+0.8%

June 2018

96.6%

96.3%

+0.3%

July 2018

96.8%

96.3%

+0.5%

August 2018

96.6%

96.3%

+0.3%

September 2018

96.6%

96.3%

+0.3%

October 2018

96.5%

96.4%

+0.1%

November 2018

96.5%

96.6%

-0.1%

12-Month Avg*

96.6%

96.2%

+0.4%

* Average Pct. of List Price Received for all properties from December 2017 through November 2018. This is not the average of the individual figures above.

Historical Percent of List Price Received by Month 97.5% 97.0% 96.5% 96.0% 95.5% 95.0% 94.5% 94.0% 93.5% 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 9


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

November

Affordability Index

Year to Date 84

84 73

79

73

76

2016

2017

2018

2016

2017

2018

- 4.5%

- 13.1%

0.0%

- 5.6%

- 6.0%

- 3.8%

Prior Year

Percent Change

December 2017

76

79

-3.8%

January 2018

72

79

-8.9%

February 2018

77

85

-9.4%

March 2018

79

80

-1.3%

April 2018

76

77

-1.3%

May 2018

74

79

-6.3%

June 2018

77

79

-2.5%

July 2018

80

82

-2.4%

August 2018

75

80

-6.3%

September 2018

76

80

-5.0%

October 2018

71

75

-5.3%

November 2018

73

73

0.0%

12-Month Avg

76

79

-4.4%

Historical Housing Affordability Index by Month 110

100

90

80

70 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 10


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

Homes for Sale

November 2,295

2,207

2,309

+ 4.6%

- 0.5% 2016

2017

2018

- 0.5%

- 3.8%

+ 4.6%

Prior Year

Percent Change

December 2017

2,107

2,205

-4.4%

January 2018

2,057

2,216

-7.2%

February 2018

2,177

2,262

-3.8%

March 2018

2,264

2,389

-5.2%

April 2018

2,288

2,408

-5.0%

May 2018

2,280

2,380

-4.2%

June 2018

2,320

2,357

-1.6%

July 2018

2,220

2,299

-3.4%

August 2018

2,326

2,223

+4.6%

September 2018

2,309

2,265

+1.9%

October 2018

2,355

2,268

+3.8%

November 2018

2,309

2,207

+4.6%

12-Month Avg*

2,251

2,238

+0.6%

* Homes for Sale for all properties from December 2017 through November 2018. This is not the average of the individual figures above.

Historical Inventory of Homes for Sale by Month 2,600

2,500

2,400

2,300

2,200

2,100

2,000 01-2015

01-2016

01-2017

01-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 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.

Months Supply

November 6.5 5.6

5.3

2016

2017

2018

- 1.5%

- 13.8%

- 5.4%

Prior Year

Percent Change

December 2017

5.3

6.3

-15.9%

January 2018

5.1

6.2

-17.7%

February 2018

5.4

6.3

-14.3%

March 2018

5.5

6.5

-15.4%

April 2018

5.4

6.6

-18.2%

May 2018

5.3

6.5

-18.5%

June 2018

5.5

6.3

-12.7%

July 2018

5.1

6.1

-16.4%

August 2018

5.4

5.9

-8.5%

September 2018

5.3

6.1

-13.1%

October 2018

5.4

5.9

-8.5%

November 2018

5.3

5.6

-5.4%

12-Month Avg*

5.3

6.2

-14.5%

* Months Supply for all properties from December 2017 through November 2018. This is not the average of the individual figures above.

Historical Months Supply of Inventory by Month 50.0

40.0

30.0

20.0

10.0

0.0 04-2014

04-2015

04-2016

04-2017

04-2018

Current as of December 10, 2018. Data is Copyright © 2018 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS® and South Carolina REALTORS®. Report © 2018 ShowingTime. | 12


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