MARKET UPDATE - August 2023

Higher mortgage rates, along with elevated sales prices and a lack of housing inventory, have continued to impact market activity during the summer homebuying season. The average 30-year fixed-rate mortgage has remained above 6.5% since May, recently hitting a two-decade high in August, according to Freddie Mac. As a result, existing-home sales have continued to slow nationwide, dropping 2.2% month-over-month as of last measure, with sales down 16.6% compared to the same time last year, according to the National Association of REALTORS® (NAR).

New Listings were up 17.1 percent to 616. Pending Sales decreased 8.6 percent to 478. Inventory grew 14.3 percent to 1,125 units.

Prices moved higher as Median Sales Price was up 13.3 percent to $510,000. Days on Market increased 31.5 percent to 146 days. Months Supply of Inventory was up 38.9 percent to 2.5 months.

Falling home sales have done little to cool home prices, however, which have continued to sit at record high levels nationally thanks to a limited supply of homes for sale. According to NAR, there were 1.11 million homes for sale heading into August, 14.6% fewer homes than the same period last year, for a 3.3 months’ supply at the current sales pace. The shortage of homes for sale has boosted competition for available properties and is driving sales prices higher, with NAR reporting a national median existing-home price of $406,700, a 1.9% increase from a year earlier.

Hilton Head & Bluffton Real Estate Market Update - August 2023

Below is the current state of the real estate market for the Hilton Head Association of REALTORS® service area, comparing year-to-date (YTD) figures from this year to the same period last year. Despite some challenges, there have been several encouraging trends that indicate resilience and opportunities in the market.

New Listings: New listings experienced a slight decline of 10.9%, falling from 5,119 to 4,561.  Even with the decline in listings, the market remains active, and there are still properties available for buyers to explore.

Pending Sales: While the number of pending sales decreased by 9.1% from 3,793 to 3,447, it demonstrates a healthy level of buyer interest in the region. This indicates that prospective buyers are actively considering their options, and the market continues to attract potential homeowners.

Closed Sales: Despite a decrease of 9.6% in closed sales, the market has seen a substantial number of successful transactions. This suggests buyers and sellers find common ground and REALTORS effectively close deals.

Days on the Market: The average number of days on the market increased by 48.0%, rising from 100 to 148 days. While this may indicate a slight slowing of the market, it also gives buyers more time to make informed decisions, leading to a smoother and more satisfactory home buying process.

Median Sales Price: The median sales price saw an increase of 7.3%, reaching $509,900. This rise reflects the enduring appeal of properties in the area and the continued interest in investing in the Lowcountry.

Inventory of Homes for Sale:  Inventory of homes for sale increased by 014.3% when comparing this August to last August.

The real estate market in August 2023 faced some challenges with declining pending and closed sales, longer time on the market for properties, and increased inventory levels. However, the median sales price managed to maintain an upward trajectory, suggesting that demand remains relatively strong despite these challenges.

As we move forward, it will be crucial to monitor economic conditions, mortgage rate fluctuations, and buyer sentiment to gauge the market's direction in the coming months. Sellers may need to be patient and strategic in pricing their properties, while buyers could find opportunities in a market with more options.

Hilton Head Island Homes- Real Estate Market Snapshot - August 2023

Year to date in 2023, new listings of homes for sale on Hilton Head were down -17.4 percent overall. Closed home sales on Hilton Head were down -20.0 percent, and the median sales price increased +12.5% percent. Days on the market increased +11.6 percent from 80 days on the market to 89 days on the market. Compared to last August, inventory of homes for sale fell -8.8 percent to 165 homes for sale in August 2023.

Hilton Head Island Condos/Villas - Real Estate Market Snapshot - August 2023

Year to date in 2023, new listings of condos/villas for sale on Hilton Head were down -13.1 percent overall. Closed condo/villas sales on Hilton Head were down -22.8 percent, and the median sales price increased by +15.6 percent. Days on the market increased +51.9 percent from 68 days on the market to 104 days on the market. Compared to last August, inventory of condos for sale increased 32.6 percent to 285 villas for sale in August 2023.

Mainland Homes (29910 and 29909) - Real Estate Market Snapshot - August 2023

Year to date in 2023, new listings of homes for sale on the Mainland were down -15.2 percent overall. Closed home sales on the Mainland were down -16.3 percent, and the median sales price increased by +14.4 percent. Days on the market increased +33.3 percent from 87 days on the market to 116 days on the market. Compared to last August inventory of homes for sale rose +23.8 percent to 375 homes for sale in August 2023.

Beaufort Real Estate Market Update - August 2023

In August 2023, the Beaufort-Jasper County real estate market displayed several notable trends and shifts. This report provides an overview of key market indicators, shedding light on the dynamics that influenced the local real estate landscape during this period.

New Listings: The number of new listings in the Beaufort-Jasper County area experienced a decline of 6.2% in August 2023. There were 2,180 new listings in August, compared to 2,324 in the previous month. This decrease in new listings may reflect a variety of factors, including seasonal variations or seller hesitation in entering the market.

Pending Sales: Pending sales also saw a slight decrease, falling by 1.9% from 2,085 in July to 2,046 in August. This dip in pending sales suggests a somewhat softer demand in the market, although it is not as pronounced as other metrics, indicating a degree of stability.

Closed Sales: Closed sales in the Beaufort-Jasper County area were down 6.5% in August 2023. The number of closed sales dropped from 2,029 in July to 1,898 in August. This decrease may be indicative of challenges buyers and sellers faced during the month, such as financing difficulties or heightened competition.

Days on Market: One of the most significant shifts observed in the market was the increase in the number of days properties spent on the market. The average days on the market rose by 31.1%, surging from 74 days in July to 97 days in August. This increase could imply that buyers took more time to make decisions or that there was increased competition among sellers.

Median Sales Price: Despite the challenges seen in other areas, the median sales price in the Beaufort-Jasper County area demonstrated resilience by rising slightly. In August 2023, the median sales price increased by 8.8% to reach $397,000. This uptick in prices may be attributed to limited inventory and continued demand from buyers.

Supply of Inventory: The inventory of homes available for sale showed a substantial increase, rising by 15.3% in August 2023. There were 519 homes available for sale by the end of the month. A larger inventory can provide buyers with more options and potentially ease some of the competitive pressures on the market.

The Beaufort-Jasper County real estate market in August 2023 displayed a mixed bag of trends, with declines in new listings, closed sales, and pending sales, as well as a notable increase in days on the market. However, the median sales price continued its upward trajectory, suggesting ongoing demand.

Moving forward, it will be important to closely monitor economic conditions, mortgage rate fluctuations, and buyer sentiment in the Beaufort-Jasper County area. Sellers may need to adapt to changing market dynamics, while buyers could explore opportunities in a market with increased inventory.