Hilton Head Real Estate Market Report - June 2012

To see both reports in full, complete with graphs, click on

• Monthly Indicators
• Housing Supply Overview

 

Monthly Indicators

We’re halfway through 2012, and what a year it’s been. Residential real estate has finally taken some meaningful strides toward recovery, and they’ve all been selfpowered without divine (or governmental) intervention. Yes, there have been some head fakes in the past, but there's real reason to believe that market turnaround awaits us. Beyond home prices, key metrics to watch include Days on Market, Percent of List Price Received and Months Supply of Inventory. Locally, a few indicators showed improvement. Let's see what the rest of our local data has to say.

New Listings in the Hilton Head region decreased 13.4 percent to 374. Pending Sales were up 18.3 percent to 317. Inventory levels shrank 19.8 percent to 2,669 units.

Prices were mostly stable. The Median Sales Price decreased 1.3 percent to $230,000. Days on Market was down 20.9 percent to 125 days. The supply-demand balance stabilized as Months Supply of Inventory was down 31.3 percent to 9.8 months.

We seem to be at a critical inflection point in our attempts to spur more hiring. Job growth provides the dual benefit of stimulating new household growth as well as relieving distressed homeowners. There's also the positive feedback loop of housing creating jobs and jobs creating housing. Keeping the affordability picture afloat, the Fed has vowed to keep interest rates around 4.0 percent through mid-2013.

House Supply Overview

After a few head fakes, even cynical commentators agree that residential real estate may finally be clawing out from a multi-year valley. For the 12-month period spanning July 2011 through June 2012, Pending Sales in the Hilton Head region were up 16.7 percent overall. The price range with the largest gain in sales was the $100,001 to $225,000 range, where they increased 24.3 percent.

The overall Median Sales Price was down 4.2 percent to $220,000. The property type with the largest price gain was the Condo segment, where prices increased 14.1 percent to $158,625. The price range that tended to sell the quickest was the $100,000 and Below range at 94 days; the price range that tended to sell the slowest was the $650,001 and Above range at 210 days.

Market-wide, inventory levels were down 19.8 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 18.7 percent. That amounts to 9.6 months supply for Single-Family homes and 10.3 months supply for Condos.

To see both reports in full, complete with graphs, click on

• Monthly Indicators
• Housing Supply Overview

 

(All data provided by Multiple Listing Service of Hilton Head Island - powered by 10K Research and Marketing and sponsored by the South Carolina Association of REALTORS.)