2009 ... the year that everyone was touched by the Events of October 2008
Hilton Head Island real estate has held it own in face of the most significant financial crisis over the past 80-90 years. While the nation experienced the economic down turn of 1990-1992, Hilton Head Island came into the downturn late and came out of the downturn earlier than most of the United States.
One of the principal negative factors in real estate has been the increased requirements by banks to approve mortgages, along with the use of Appraisal Management companies to appraise local property. These appraisal firms are a result of new federal laws to set up a firewall between the loan processor and the purchaser. Appraisal Management companies are typically not located in the area and are not informed about the local values as a part of locations for homes relative to the ocean and other views that make up many of the On Island properties.
Hilton Head Island has several different market segments: Homes, Condominiums/ Villas, ocean-oriented and non-ocean-oriented locations. I'll describe these segments...Hilton Head Island "ocean-oriented" are properties that are either oceanfront, ocean view or are located from the second row to the twelfth row from the ocean. The ocean-oriented segment of the market is driven by the demand for rental properties and the desire to see ocean views. Hilton Head Island "non-ocean-oriented" are properties that located on the Island but not within the ocean-oriented area. This segment of the market consists of properties mostly in planned communities that provide some amenities, and offer views that are wooded, golf, lagoon, sound and/or marsh.
Some very positive real estate sales numbers for 2009 are the Average Units sold per month. For non ocean oriented homes in 2008, On Island sales averaged 41.9 per month. Even after the financial "tsunami" of late 2008 the average number of non ocean oriented homes per month in 2009 was 38.6. Sales results for ocean oriented homes actually saw an increase in number of units sold per month in 2009 with 8.08 compared to 7.4 per month in 2008. For condominium sales in 2009, the average sales per month for Non ocean oriented units saw an increase to 32.9 from a monthly level of 30.5 in 2008. The only decrease in units was experienced by the Ocean oriented condominiums with 10.3 per month in 2009 compared to 14.5 in 2008.
The On Island inventory levels have increased from the historically low numbers of 2005. But the inventory levels have not increased like some other markets. Some markets saw 400-500 percent increases and Hilton Head Island saw +/- 100% increase and these levels have not continued to increase during 2009. Overall market conditions show that on December 3, 2009 there were 268 ocean oriented homes active. With and average of 8.08 homes selling per month in the past 12 months, there are 33.27 months of inventory. For non ocean oriented homes, as of December 3rd, there were 764 active properties and the average per month in the past 12 months was 38.6. This gives us 19.7 month of inventory On Island. Ocean oriented condos active on December 3rd was 335 and the average for the past 12 months was 10.3 per month. Thus there is 32.5 months of inventory. Non ocean oriented condos active on December 3rd was 747 and the average per month for the past 12 months was 32.9 per month. Thus we have 22.7 months of inventory. Keep in mind, while prices have pulled back, consumers who know Hilton Head Island are still buying homes.
In the first 3 months of 2009, real estate sales were the lowest I have seen in 17 years. But beginning in April 2009 the consumer has continued to be more positive and sales for the second half of 2009 were 60-70% more than the first 4 months. Continuing with the positive trend, the past 3 months of 2009 have given the real estate industry an optimistic feeling about 2010. The first time home buyer tax credit will continue to help spur activity in areas of the country where a seller might be waiting to sell there home and move to Hilton Head. And that is a positive trickle-down effect!
Have a joyous holiday season and a great 2010!
Friday, August 28, 2009
Hilton Head Island real estate update. Attached are the years to date results comparing January to July 2008-2009
The question is always how the market is. To give an answer let's look at the on Island home and condo sales for the last three years.
Year to date January -July on Island home sales
•2006 $ 497,989,245 #330
•2007 $402,796,576 #415
•2008 $286,818,808 #344
•2009 $188,581,405 #272
Year to date January -July on Island condo sales
•2006 $ 167,196,487 #481
•2007 $158,129,809 #405
•2008 $118,898,256 #288
•2009 $ 61,352,298 #236
Year to date on Island home sales by number of transactions
March 33 units
April 48 units
May 51 units
June 62 units
July 48 units
Six months average number of homes per month 48
Number of homes pending over the past 30 days 68. Activity has increased significantly.
A few September facts at a glance (as of 09/30/08):
Hilton Head Island
In regards to HOME sales:
In regards to CONDO/VILLA sales:
Year to date results and observations by Andy Twisdale,
Charter 1 North Realty
Through the end of December 2007, the On-Island real estate market was seeing some mixed results. For the 13 different market segments, or gated communities, six are behind in closed units compared to 2006 and 7 are ahead of 2006 in closed units. The most active area percentage wise is Shipyard. By number of closed units, the most active has been Hilton Head Plantation with 185 units or 6% ahead of 2006. Sea Pines was the next most active with 154 units closed or 4% ahead of 2006. Palmetto Dunes has closed 48% less units in 2007 than in2006. Five areas have seen average prices increase and 8 market areas have experienced a decline in average prices.
HILTON HEAD ISLAND | ||||||||||||||
AREA | Total Active | Pend | Total Sold | % Total Sales | Percent Sale/List | Average Sale Price | % Avg Sale Price | Average Days on Market | % DOM | |||||
| 2006 | 2007 | 2007 | 2006 | 2007 | '06 vs '07 | 2006 | 2007 | 2006 | 2007 | '06 vs '07 | 2006 | 2007 | '06 vs '07 |
Sea Pines Plantation | 233 | 234 | 14 | 148 | 154 | 4% | 94.53% | 92.94% | $ 1,261,248 | $ 1,603,417 | 21% | 101 | 138 | 27% |
Forest Beach | 60 | 75 | 1 | 15 | 15 | 0% | 96.67% | 90.10% | $ 2,028,357 | $ 2,186,567 | 7% | 142 | 182 | 22% |
Shipyard | 10 | 9 | 1 | 8 | 11 | 27% | 94.74% | 94.18% | $ 642,857 | $ 553,059 | -14% | 100 | 109 | 8% |
Wexford | 28 | 47 | 3 | 26 | 14 | -46% | 93.98% | 94.26% | $ 1,662,103 | $ 1,960,178 | 15% | 158 | 84 | -47% |
Long Cove | 27 | 25 | 3 | 20 | 23 | 13% | 97.53% | 94.14% | $ 1,032,638 | $ 973,673 | -6% | 144 | 118 | -18% |
Palmetto Dunes | 89 | 117 | 4 | 79 | 41 | -48% | 94.44% | 93.84% | $ 1,526,074 | $ 1,170,518 | -23% | 121 | 179 | 32% |
Port Royal | 54 | 50 | 2 | 23 | 40 | 43% | 92.50% | 93.42% | $ 1,307,904 | $ 871,512 | -33% | 124 | 127 | 2% |
Hilton Head Plantation | 143 | 149 | 20 | 174 | 185 | 6% | 96.42% | 94.75% | $ 589,716 | $ 584,540 | -1% | 66 | 86 | 23% |
Palmetto Hall | 26 | 32 | 3 | 22 | 22 | 0% | 96.41% | 96.01% | $ 743,285 | $ 696,157 | -6% | 103 | 88 | -15% |
Indigo Run | 50 | 54 | 8 | 53 | 39 | -26% | 96.18% | 94.12% | $ 845,608 | $ 892,301 | 5% | 87 | 135 | 36% |
Spanish Wells | 9 | 23 | 2 | 9 | 6 | -33% | 95.71% | 94.80% | $ 998,825 | $ 2,793,000 | 64% | 115 | 149 | 23% |
Windmill Harbour | 31 | 40 | 2 | 25 | 18 | -28% | 93.82% | 91.51% | $ 1,090,464 | $ 1,082,458 | -1% | 121 | 139 | 13% |
Off Plantation | 125 | 152 | 11 | 93 | 61 | -34% | 95.51% | 95.90% | $ 639,806 | $ 438,626 | -31% | 81 | 118 | 31% |
2006 2007
Sales for on Island Homes priced $500,000 and below 156 152
Homes priced $501,000 to $800,000 271 230
Homes priced $801,000-$1,000, 000 99 78
Homes $1001, 000-$3,000,000 212 176
Homes $3, 000, 0000 and higher 24 33
Most expensive home sold by year $6,870,000 $7,725,000
The most interesting observation is that more homes sold in 2007 in the $3,000,000 or higher price point. This shows a great deal of confidence for the most wealthy of purchasers. They see the value and believe that the timing is now.
It seems like real estate for primary or second homebuyers produced the most activity. Investor and resort property buyers are seeing less activity.
In a difficult real estate market, Charter 1 Marketing has continued to be the leader in volume and units sold for 2007. With 819 closed units through 11/30/2007, Charter 1 sold 242 more units that the second place Real Estate Company. The third place real estate company sold 549 units compared to 819 for Charter 1 Marketing., Overall Charter 1 Realty and marketing marketed 23.9% of all properties sold and represented the buyer in 15.8% of the total transactions. This is out of 159 MLS real estate company members.
In Hilton Head Plantation Charter 1 Realty & Marketing was the listing/marketing company in 57.8 % of all sales and represented the buyer in 26.4% of all transactions.
In Indigo Run Charter 1 Realty & Marketing was the listing/marketing company for 68.3% of the sales and represented the buyer in 41.2 % of the 102 transactions.
For a free market evaluation of your property or to discuss where the real estate opportunities are on Hilton Head Island, Also, if you would like to receive automatic real estate updates. Call Andy Twisdale, 843-384-7771 or e-mail andy@andytwisdale.com.
 |
|
|
Serving Buyers and Seller since 1992. Ranked in the top 5 % of the market. Realtor of the Year 1998, President of Realtor Association 2000 & 2006. BOD Chamber of Commerce 2007. Islander for 37 years
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
