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Monthly Indicators
With the Olympics in full swing, housing has already medaled in several arenas. A few short years ago, housing was considered a headwind to economic recovery. Today, housing is seen as a tailwind to a stalling economy. For the first time since 2005, housing is on track for contributing positively to national GDP in 2012. That can occur either by way of direct residential investment or through remodeling and other ancillary services. Watch for signs of sustained tailwinds in a variety of indicators, including market times, seller concessions, prices and absorption rates.
New Listings in the Hilton Head region decreased 3.1 percent to 371. Pending Sales were up 5.1 percent to 288. Inventory levels shrank 19.1 percent to 2,631 units.
Prices moved higher. The Median Sales Price increased 2.9 percent to $220,000. Days on Market was down 11.5 percent to 124 days. The supply-demand balance stabilized as Months Supply of Inventory was down 30.4 percent to 9.6 months.
Sustained recovery will not occur without real employment and wage growth. Consumers must be confident in both the economy and their family finances before signing on the dotted line. Cheap borrowing costs have served as the glue binding things together. Unimaginable a few years ago, the rate on a 30-year fixed mortgage recently ducked below the 3.49 percent marker. Job creation and GDP numbers will garner particular attention this quarter.
House Supply Overview
As Olympians wind down their time in London, the local housing market has already medaled in several events. For the 12-month period spanning August 2011 through July 2012, Pending Sales in the Hilton Head region were up 16.1 percent overall. The price range with the largest gain in sales was the $100,001 to $225,000 range, where they increased 25.0 percent.
The overall Median Sales Price remained flat 0.0 percent to $227,815. The property type with the largest price gain was the Condo segment, where prices increased 20.2 percent to $159,000. The price range that tended to sell the quickest was the $100,000 and Below range at 89 days; the price range that tended to sell the slowest was the $650,001 and Above range at 206 days.
Market-wide, inventory levels were down 19.1 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 17.2 percent. That amounts to 9.5 months supply for SingleFamily homes and 9.9 months supply for Condos.
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(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.)