Posts Tagged ‘Hilton Head Homes’
The Affordability of Hilton Head Homes Sets Record High
With low prices and low interest rates, the affordabilty of a monthly mortgage payment for a medium priced single family home has improved dramatically in recent years, $700 now compared to $1,140 in 2006 according to David Stiff, Chief Economist at Fiserv. Mortage payments have declined by 40% in the last 5 years. Now purchased mortgage payments account for only 13% of a monthly medium family income nationally, the lowest on record since 1971!
A state by state study done by Professor Ken H. Johnson of Florida Internation University and Editor of The Journal of Housing Research shows that in South Carolina, the ratio of housing price to income is between -5% to -15% less than the 30-year average for this ratio.
While these are national and state trends, they have been generally true for the Hilton Head real estate market in recent years. The affordability of Hilton Head homes and villas is more affordable now than in many years. Affordabilty is a fourth big reason to buy real estate in 2012 along with low prices, low interest rates and large selection.
To find the home or villa on Hilton Head that is affordable for your budget, please call me, Richard Kadesch of Go Gated Realty®, the Gated Communities Specialist® today. My cell number is 843-684-2933 and email rich@gogated.com.
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933
Email rich@gogated.com
The Sales Trend for Hilton Head Homes
The average monthly sales price of Hilton Head Island homes: June 2010 until June 30, 2011
The 13-Month June to June Trend Line shows home price decline of 4%
What is the direction of Hilton Head Island home prices? The chart above is taken from MLS data* and it shows the monthly average sales prices of Hilton Head Island homes sold from June 2010 until June 2011. Charts and data can be presented and interpreted differently. This is my interpretation of this data:
- The average June 2011 home sold for $723,371 vs $753,959, a decline in average price over the last 12 months of 4%.
- During the last 12 months, average prices fell to a low of $664,524 in November, 2010 before increasing every month since then.
- A shorter term trend line (below) from September, 2010 until June 2011 shows an increase in average sales price of 5%, from $689,126 to $723,371.
- Sales prices of homes in August-December 2010 were below the 12 month trend line seen above. This may mean that the second half of 2011 will be a good time to buy.
The 10-month trend line from Sept 2010 to June 2011 shows an increase in average increase in Hilton Head home prices of 5%
The average monthly sales price of Hilton Head Island homes Sept 2010 to June 2011
What Does this Data Mean?
The two graphs above suggest that Hilton Head homes prices may have bottomed out. We will not know for sure until more time has passed but something worth remembering is that this data is broad (as is most data presented in the media) and includes a variety of areas with low prices and very high prices. There are markets within markets and you should ask your real estate broker for comparables for the specific market that interests you.
I believe that the lowest prices have come and gone. As long as buyers stay in the lower price range of what is offered today, they should not regret their purchase price in time and to the contrary, I believe that they will be very happy with their price. Therefore, if you find a house that you really like and it has a good price, do not wait. This is an excellent time to buy and there are many outstanding homes for sale at low prices today. Today’s low mortgage are also an excellent reason not to wait with rates that have ranged from 4.5-4.87% for many months.
To find a bargain on a good Hilton Head home, please call or email me, the Hilton Head Gated Communities Specialist today. My cell phone is 843-684-2933 and my email is rich@gogated.com.
*The Hilton Head MLS requires a disclosure for sales data that says that the data is not guaranteed to be accurate, should not be used for any purchase or sale decision and is not a representation of any fact whatsoever.
To find a bargain on a Hilton Head home or villa, please call:
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933, Email Rich@gogated.com, www.GoGated.com
Hilton Head Homes Are Selling In Every Price Range
Hilton Head homes are selling well at all prices, like this home in Indigo Run.
Homes Priced Less Than $450,000 Are Most Popular
Several sources tell us what buyers want to pay for a home on Hilton Head:
- Responses to print ads – there are more responses in recent months.
- Responses to on-line listings, also up.
- Calls from buyers - my favorite by far, also up in recent months. Nothing beats speaking directly with someone to learn about their interests.
- Comments from agents who talk about their experiences.
- Hilton Head MLS statistics.
- News articles that combine information from the above, like this article.
Opinions about the market based on personal experience can be like like blind men who define the elephant by which part of the elephant they touch. Statistics can be interpreted differently by different people and so all sources of information are significant. Engineers love numbers; everyone likes anecdotes.
I already knew that lower-priced homes were selling well based in part on the first-time home buyer stimulus of recent months, now extended. But, I wasn’t sure about how well higher priced homes were selling. I was happy to see that homes s in all price ranges are selling well on Hilton Head today.
The direction of prices will be for another article. This article does not try to define whether prices are going up, down or sideways except indirectly nor do I try to address the the sale of lots or villas - just houses. It is understood that most of the homes sold in every price range are bargains compared to what they sold for in recent years and even one year ago.
The numbers in the chart below are from the Hilton Head Multiple Listing Service and they summarize homes sales from the entire Hilton Head area, not just Hilton Head Island. Hilton Head means the entire area and this includes more than just Hilton Head Island; it also includes Bluffton, Daufuskie Island, Okatie, Hardeeville and additional outlying areas. For many people today, Hilton Head means everything from Rt 278 to Sea Pines whereas Hilton Head Island means just the Island itself.
Hilton Head Homes Sold in the Last Six Months $ List Price Listed Contingent Pended Sold S/L* C+P/S** Under 100,000 37 3 17 24 92 59 100,000-150,000 160 6 35 94 59 44 150,000-200,000 275 5 62 134 59 44 200,000-250,000 195 2 33 86 44 41 250,000-300,000 149 2 26 85 57 33 300,000-350,000 138 1 17 74 54 24 350,000-400,000 135 2 22 67 50 36 400,000-450,000 95 1 10 47 49 23 450,000-550,000 216 2 24 85 39 31 550,000-650,000 208 1 22 46 22 49 650,000-750,000 145 2 17 36 25 53 750,000-1 million 285 4 21 52 18 48 1 million – 1.25M 84 0 8 19 23 42 2.25 million-1.5M 124 0 4 16 13 25 1.5 million – 2M 132 2 2 13 10 31 Over 2 million 172 0 10 20 12 50*S/L is the ratio of how many homes have sold in the last six months compared to the number of homes listed. The higher the ratio, the more likely that prices will be steady or increase in the future. A low ratio could mean that few homes are selling and prices may have to come down to achieve sales. Most every group of properties shows a strong, healthy ratio of number of homes sold to the number of homes listed.
**C+P/S is the ratio of contingent and pended homes compared to the number of homes sold in the last six months. This says whether the number of homes under contract shows an increase, decrease or no change from the sales velocity of the last six months. Almost all price ranges show an increase in the number of sales and if sustained, could bring higher sales prices.
”Contingent” means that a contract of sale has requirements that must be satisfied before the agreement can proceed to closing. The most common contingencies are a buyer’s satisfactory inspection and that the buyer must qualify for a loan.
“Pended” means that there are no contingencies to the contract of sale or that they have been satisfied and the property will proceed to close. Many agents label “contingent” homes as “pended” but for our purposes, it doesn’t matter.
To get the bargain home that you want in any price range, or devise a winning strategy to sell a house that you already own, please call me , the Hilton Head Gated Communities Specialist today.
The Multiple Listing Service of Hilton Head Island that requires this disclaimer: “The statistical data contained herein has not been verified by the Multiple Listing Service of Hilton Head Island, Inc. and the publication of information hereof is not a representation or warranty of any fact whatsoever.”
Richard Kadesch, Owner and Broker-in-Charge
The Gated Community Specialist ®
Go Gated Realty ®
Hilton Head Island, South Carolina
Rich@gogated.com
www.GoGated.com
1-800-333-5025
Read Some of My Clients’ Success Stories
Buy Many Hilton Head Homes For Less Than $200,000
#42 Hidden Lakes Lane in Bluffton, South Carolina has three-bedrooms, two bathrooms, a two-car garage and a fence back yard; for sale with Go Gated Realty for $174,500.
The Biggest Selection Is In Bluffton, S.C.
Homes that cost less than $200,000 have always been a ‘hot’ market on Hilton Head because many people can afford them. Prices on lower-priced homes have fallen along with the rest of the real estate market into this affordable price range and with low interest rates, this is the most affordable housing market since affordability has been measured. Buyers who are looking for these kinds of homes include young families, first-time home buyers, singles, Hilton Head investors and retirees.
A $200,000 mortgage costs only $1,074 per month, fixed over 30-years with 5% interest. This is less than the rent for many comparable homes that cost less than $200,000.
Bluffton, South Carolina is just across the bridge from Hilton Head Island is and it has the greatest selection of homes in the area for less than $200,000. Today, there are 64 three-bedroom homes with 2-car garages for less than $200,000 for sale from all Hilton Head MLS companies. These are newer, attractive homes that are located in relatively new communities that are close to schools and that have neighborhood swimming pools, tennis courts and playgrounds.
“Hilton Head Home” in this article refers to a home in the Hilton Head area. This includes Bluffton and areas near and including Hilton Head island. Homes on Hilton Head Island start at higher prices than those in Bluffton and for example, there are only 9 homes on Hilton Head island today that are listed for less than $200,000 and none have a garage. The lowest price for a home with a two-car garage on Hilton Head Island today is $250,000.
To see the selection of Bluffton homes for less than $200,000 yourself, please visit my web site GoGated.com. Choose ‘Homes’ and the price range you want and select area 16 for Bluffton, out-of-plantation homes. Interactive maps on my web site will show you the locations of the communities and the neighborhood finder on my web site will let you make quick community comparisons.
It costs nothing more to have a good Buyer’s Agent on Hilton Head assist you and represent your interests before, during and after your purchase and understanding which properties are best for you takes time and experience. I love working with Hilton Head first-time home buyers and retirement buyers who typically want lower-priced homes. If you would like to receive a list of homes that will meet your needs, and with no obligation, please contact me.
Richard Kadesch, Owner and Broker-in-Charge
The Gated Community Specialist ®
Go Gated Realty ®
Hilton Head Island, South Carolina
Rich@gogated.com
www.GoGated.com
1-800-333-5025
Read Some of My Clients’ Success Stories