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Posts Tagged ‘hilton head second home’

Hilton Head Home Prices Trend Downward

Hilton Head Home Prices Search for the Bottom The average sales price of Hilton Head houses month by month for the last 13 months.

Sep 07 Oct Nov Dec Jan 08 Feb Mar Apr May Jun Jul Aug Sep 600 611 507 601 576 399 569 501 520 537 452 513 536 Hilton Head Home Sales Prices x $1,000.

We don’t need the Go Gated Blog to tell us that Hilton Head home prices have fallen. Statistically, home prices have fallen from September 2007 to September 2008 by 10.8%. But, are prices at the bottom and if not, when will this happen? The fact is that nobody knows exactly when prices will bottom and economic events like that are impossible to predict accurately. But, we can study our local housing numbers as we do in this blog and draw our own conclusions about what may happen next.

The best statistics about Hilton Head home sales for us to study come from the Hilton Head Multiple Listing Service and come with this disclaimer: “The statistical data presented herein has not been verified by the Multiple Listing Service of Hilton Head Island Inc, Richard Kadesch or Go Gated Realty. The publication of the information hereof is not a representaiton of any fact whatsoever.”

The Number of Hilton Head Homes Sold

Sep 07 Oct Nov Dec Jan 08 Feb Mar Apr May Jun Jul Aug Sep

169 90 87 143 66 113 107 140 156 129 148 106 83 A Summary of Hilton Head Home Sales Data

Here is a summary of some 13-month statistics taken from the HIlton Head MLS:

The average sales prices of homes shows a gradual decline in the past 13 months (see the graph, above). The average home sale in September 2007 was $600,496 vs the average home sold in September, 2008 of $535,719 shows a decline in average sales price of $64,777 or 10.8% year to year for September. We will probably see some lower average sales prices in 2009 and we will have to monitor the data to see when we hit bottom.
The number of homes sold shows a gradual decline (see the graph, above). 169 homes sold in September 2007 vs 83 sold in September 2008. This is a decline of 50.9% for these two months year to year. Okay, so there are fewer buyers but to speculate about why is to ask if prices are still too high, credit is too tight and if buyers are waiting for the presidential election or some other event as a buying signal.
The dollar volume of Hilton Head homes sold declined from $101,483,835. in September 2007 to $44,464,691. in September 2008 ( see the graph, below). This is a decline of 56.2%. This number, together with the number of homes sold data tells me that more homes are selling in the lower price range, at least in September, 2008.
The average days on the Market to sell is up from 125 in September 2007 to 149 in September 2008 (see the graph, below). This is an increase of 24 days, or 19.2%.

Hilton Head Home Sales in Millions of Dollars The sales volume of homes sold monthly in the last 13 months.

Sep 07 Oct Nov Dec Jan 08 Feb Mar Apr May Jun Jul Aug Sep

101 55 44 86 38 45 61 70 81 69 67 54 44

What Must Change For Prices to Recover

The supply and factors must change. Demand must increase more than the supply increases. The supply must decrease. We see this happening and many sellers do not renew listings and withdraw properties from the market. In September of 2007 there were 2,904 Hilton Head homes for sale vs 2,842 homes for sale in September, 2008 – a reduction of 2%.
The rate of foreclosures must diminish. While foreclosures are a small part of the sales inventory, they depress prices at the low end..
Credit must be available for buyers and at attractive interest rates. The government is not committed to this issue.
Buyer confidence must improve. Many buyers are waiting for the market to settle down and to me, this means that they expect to get lower prices by waiting or they must sell before buying. Buyers also don’t like uncertainty in general and there is a lot of that right now. We need to have the Presidential election to eliminate the uncertainly about who will be our next President. We need more assurance that the national and world economy will improve.

The Go Gated Blog will be monitor events and HIlton Head home prices. The needed changes will happen slowly. National experts see a housing recovery underway but that will take several years to complete. Hilton Head is typically among the last places to feel a recession and among the first to recover. This is in part because there are many affluent buyers of prime Hilton Head Island real estate. It is also true that Beaufort County is among the fastest growing counties in the State of South Carolina. There are many new jobs here and baby boomer demographics favor the Hilton Head retirement and second home housing market.

Some Good News for Hilton Head Home Sellers

The gradual decline in prices gives sellers a reasonable expectation of what buyers will pay.
There are buyers in the marketplace.
We are probably at or near the bottom of home prices.
Banks do have money to lend and interest rates are generally pretty good.
If you sell low now and will buy again, you will probably buy low too.

Average Days on the Market to Sell Days on the market.

Sep 07 Oct Nov Dec Jan 08 Feb Mar Apr May Jun Jul Aug Sep 125 128 101 146 130 139 145 162 151 118 149 147 149 What is a Hilton Head Home – Statistically?

All sales from the entire HIlton Head MLS area is used for the data in this article. Yes, the Hilton Head statistial home is a combination of some trailers down the road, a few ocean front mansions and numerous other homes. Please ask the Gated Communities Specialist ® about the sub-market of the neighborhood that interests you. Recently a client who bought a house from me last year in Hilton Head Plantation called to find out how much he believed home prices must have fallen in his neighborhood. The numbers told me that prices where he lives have not fallen at all. He loves his home and has no regrets. He could not have bought it now for the low price that he got even if it was for sale today.

Remember, this data describes homes - not villas or lots. That data will be presented in separate blog posts ASAP. Most sales of the Hilton Head Multiple Listing Service occur on Hilton Head Island or in Bluffton, South Carolina. Other areas that are part of the Hilton Head MLS include Ridgeland and Hardeeville, both in Jasper County. Also included are homes in Barnwell, Hampton, and Orangeburg counties.

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

Hilton Head Real Estate Loans and The Buyer's Advantage

Today, some buyers are concerned about getting a loan and that concern may be appropriate. There’s no question that the rules of lending have changed. The jazzy lending products that formerly assisted marginally qualified buyers are no longer available. Still, buyers with credit scores of 680 or better shouldn’t have any trouble getting an attractive loan and Hilton Head lenders are ready to compete for your loan business. If you are a qualified buyer, you will have great opportunities and a competitive advantage in the marketplace. Some reasons why are:

Interest rates are very good today.
You will get the best rates and terms that the banks have to offer.
Tighter lending means fewer qualified buyers to bid against you for the real estate you want.
Today’s market has some low prices and eager sellers ready to take an offer.
Inventories are high and your selection is excellent.

Buyers with lower credit scores should not despair. You can still qualify for most mortgages - but not at the leveraged and easy terms that we saw a few years ago. Qualifying may mean having to put more money down and provide greater documenation. It should be worth it because of the advantages of being a buyer in today’s market.

Sperry Kaler is a local lenderof with Ameris Bank. Here are his comments about what buyers can expect today:

“In general, the state of the mortgage market for ‘non-exotic’ traditional types of loans is good. Funds for residential real estate purchases are still readily available from your local bank (such as Ameris Bank). Interest rates are at historically low levels and almost a three-year low coming off the lowest low that occurred in the summer of 2003 during the refinance boom100% financing is still available but not without documentation, especially for second homes or investment properties. If you are self-employed, full documentation (verifiable income and assets) and even stated income loans are available. The down payment that is required is determined by type of loan and the type of occupancy. Conventional loans are $417,000 or less and jumbo loans are more than $417,000. The three types of occupancy are primary residences, second homes and investment properties, each with increasingly more down payment required. The following examples are illustrative of today’s market. They assume credit scores above 680-700 and full documentation: Primary Residence Purchase – 5% down Second Home Purchase – 5% down Investment Property Purchase- 10% down Factors that could raise down payment requirements by 5-20% could be loans that are stated rather than verified, income and asset loans, ARMs, interest-only loans and loans for condos rather than single family residences. Check with your mortgage professional for details".

If you would like to discuss loan products and prequalify at no obligation withAmeris Bank, contact Sperry Kaler at sperry.kaler @amerisbank.com or call him at 843-301-1325.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@rkrealty.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories