Monthly Market Report The Sun City Hilton Head

Eighty percent of current mortgage holders have a rate under four percent.

“80% of all current mortgage holders have a rate under 4%,” according to a Marketplace interview with Rafe Jadrosich, a commentator for Bank of America. Most mortgage holders are unlikely to trade in their ultra-low interest rate for a new mortgage that could easily be more than double their current rate. This puts current mortgage holders, who would like to move but don't have to, on the sidelines, leaving cash buyers and others who need to buy or sell regardless of market conditions. This is evident when comparing the new listings in February 2022 to February 2023, which are down almost 60%. Closed sales are down 40% from the same time last year, and the median sale price continues to remain steady at 33% higher than it was in February 2022. Overall, the market is shrinking, and prices in Sun City are still holding onto most of the gains realized during the pandemic. The number of homes for sale is up 150% from the same time a year ago, but inventory levels are still low compared to a normal market. We are still seeing multiple bids on many well-priced and maintained homes, but overall, buyers have been able to negotiate prices and other terms much more easily than in the last few years. Most real estate experts predict more of the same in the next few months barring unknown factors that may arise. For buyers, there is an opportunity to negotiate terms more easily than a year ago. For sellers, this market is an opportunity to cash in while prices are still near historic highs. Contact me if you would like a free detailed market analysis and insights on how to navigate this market.

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This month marks the 12 year anniversary of the Sun City Monthly Market Report. I would love to hear your feedback, suggestions, or just know that you are reading it. Email me at Gary@GarySmythe.com, call me 843.301.1591 or follow the QR code for video commentary and an opportunity to give feedback.