As temperatures move into the '70s and leaves begin to drop, it's clear that Fall has arrived in the Lowcountry. Don't tell the housing market, though. COVID-19 likely shifted some of the buying into later months, but in many ways, the market is still performing like it's the height of the spring and summer home buying season.
Real Estate Transactions Through Mid October
In terms of real estate transactions, 2019 was a banner year for real estate in Southern Beaufort County. Fast forward to October 2020, and the Lowcountry real estate market has already exceeded the 2019 total number of transactions by over 6%. With two months left in the year 2020 is on track to be a record-breaking year for real estate transactions in the Lowcountry.
Over the past 20 years, historical figures show that there had only been three weeks before this year where our market experienced more than 150 transactions in a given week, with the highest transaction count being 184. Year-to-date through the middle of October, we have had 21 weeks with more than 150 transactions in a given week. Since the middle of May, we have averaged over 185 transactions a week – an average that is greater than the single highest transaction count we had ever seen in our market prior to this year.
Luxury Transactions in the Lowcountry
The luxury market in the Lowcountry is performing better than it ever has. Here is a recap of the high-end sales in our area.
Number of $1M+ sales in the Lowcountry
Prior 3yr monthly average: 19.72
Q1 2020 monthly average: 23.25
Monthly average since May 2020: 76.4
That is 3.87 times the monthly average.
Number of $1.5M+ sales in the Lowcountry
Prior 3yr monthly average: 8.13
Q1 2020 monthly average: 10.25
Monthly average since May 2020: 39
That is 4.79 times the monthly average.
Number of $2M+ sales in the Lowcountry
Prior 3yr monthly average: 4.19
Q1 2020 monthly average: 5.75
Monthly average since May 2020: 22.4
That is 5.34 times the monthly average.
Number of $3M+ sales in the Lowcountry
Prior 3yr monthly average: 1.5
Q1 2020 monthly average: 1.75
Monthly average since May 2020: 8.8
That is 5.86 times the monthly average.
Inventory levels continue to diminish in the Lowcountry. Over the prior three years, we have averaged 683 homes for sale in a given month on Hilton Head Island. As of today, there are 226 homes for sale. That is a decline in our average inventory of 67%. When you expand out to all of Southern Beaufort County, we have averaged 1385 homes for sale in a given month over the prior three years. As of today, there are 695 homes for sale. That is a decline in our average inventory of about 50%.
Most villas are on Hilton Head Island, so that is all that will be considered here. Over the prior three years, we have averaged 450 villas for sale in a given month. As of today, there are 182 villas for sale. That is a decline of almost 60%.
What does this mean for buyers and sellers in the Lowcountry?
It's the simple equation of supply and demand. Low inventory and high consumption naturally leads to pressure on pricing. The Lowcountry real estate market is already experiencing that pressure. Median home values are up approximately 12% over last year. Median villa values are up approximately 14% over last year.
Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high, and supply is limited. That's exactly the situation in the real estate market today. Now is the time to sell.
Without having a crystal ball, we have no way of knowing how long this momentum will last. Let's connect today to get your property on the market at this optimal time to sell.