MARKET UPDATE - September 2023

National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).

Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.

Hilton Head & Bluffton Real Estate Market Update - September 2023

The Hilton Head real estate market experienced notable shifts in the 12-month period from October 2022 through September 2023. While some key metrics have seen fluctuations, the market remains dynamic and worth monitoring closely.

New Listings:

• In a year-over-year comparison, new listings were down by 9.8%. This suggests a decrease in the number of properties coming onto the market.
• Compared to the previous month, there was a substantial 18% drop in new listings. This could indicate a potential trend of decreased property supply.

Pending Sales:

• The number of pending sales decreased by 9.0% year-over-year, which aligns with market adjustments, allowing for a more measured pace of transactions.
• In a month-over-month comparison, pending sales dropped by 15%, potentially creating a more favorable environment for buyers and sellers to negotiate.

Closed Sales:

• Closed sales were down 8.0% year-over-year, reflecting a market transitioning to a healthier equilibrium and reducing the risk of a market bubble.
• In comparison to the previous month, the 2.75% decrease in closed sales is indicative of a more measured market pace, which may offer more opportunities for negotiation.

Days on the Market:

• The average number of days a property spent on the market increased significantly by 43.7% year-over-year, rising from 103 to 148 days. This suggests properties were taking longer to sell.
• Compared to the previous month, days on the market remained nearly the same, with a minimal decrease of 0.6%. This stability may indicate some resilience in the market.

Median Sales Price:

• The median sales price increased by 8.1% year-over-year, reaching $509,900. This indicates a positive trend for property values.
• In a month-over-month comparison, there was a further increase of 1.4%. This suggests that property prices continued to rise steadily.

Inventory Levels:

• The inventory of homes for sale increased by a remarkable 19.5% year-over-year, reaching 1,179 homes for sale in September 2023. This abundance of supply allows buyers to explore various options.
• In a month-over-month comparison, there was a 4.8% increase in inventory levels, indicating a growing selection of properties for buyers.

In summary, the Hilton Head real estate market has shown some interesting trends in the 12-month period from October 2022 through September 2023. Notably, there have been decreases in new listings, pending and closed sales, and an increase in the median sales price. The increase in days on the market indicates that properties took longer to sell.

Increasing inventory levels is a potentially positive sign for buyers, offering them more options. While these statistics reveal a market with both opportunities and challenges, both buyers and sellers need to stay informed and adapt to the evolving conditions. Future market dynamics will require continued monitoring to understand if these trends persist or if new patterns emerge.

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

Year to date in 2023, new listings of homes for sale on Hilton Head were down -14.1 percent overall. Closed home sales on Hilton Head were down -18.2 percent, and the median sales price increased +13.2% percent. Days on the market decreased by 3.4 percent from 83 days on the market to 80 days on the market. Compared to last September, inventory of homes for sale rose 2.3 percent to 175 homes for sale in September 2023.

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

Year to date in 2023, new listings of condos/villas for sale on Hilton Head were down -10.7 percent overall. Closed condo/villas sales on Hilton Head were down -22.1 percent, and the median sales price increased by +15.6 percent. Days on the market increased +6 percent from 79 days on the market to 84 days on the market. Compared to last September, inventory of condos for sale increased 32.9 percent to 293 villas for sale in September 2023.

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

Year to date in 2023, new listings of homes for sale on the Mainland were down -13.8 percent overall. Closed home sales on the Mainland were down -15.1 percent, and the median sales price increased by +15.0 percent. Days on the market increased +13.6 percent from 110 days on the market to 125 days on the market. Compared to last September inventory of homes for sale rose +22.7 percent to 405 homes for sale in September 2023.

Beaufort Real Estate Market Update - September 2023

The Beaufort-Jasper County real estate market experienced several shifts and changes in the 12-month period spanning October 2022 through September 2023. Here is an overview of the key trends and data:

New Listings:

• In a year-over-year comparison, New Listings decreased by 5.3%.
• Compared to last month, New Listings saw a more pronounced drop, down 21%.

Pending Sales:

• Pending sales were down by 2.8%, declining from 2,318 to 2,253 homes pending sale, in a year-over-year comparison.
• Compared to the previous month, Pending Sales dropped significantly by 17.5%.

Closed Sales:

• Closed sales also declined, down 3.8% from 2,260 to 2,174 in a year-over-year comparison.
• However, compared to the previous month, Closed Sales increased by 16%.

Days on the Market:

• Days on the market increased notably by 31.1%, rising from 74 to 97 days in a year-over-year comparison.
• Compared to the previous month, there was a minimal decrease of 3% in the average number of days on the market.

Median Sales Price:

• The median sales price saw a positive change, rising by 9.0% to $398,000, reflecting an appreciation in property values.

Inventory Levels:

• Inventory levels of homes for sale increased significantly by 22.3%, resulting in 542 homes available for sale in September 2023.
• Additionally, compared to the previous month, there was a 4.4% increase in inventory levels.

Market Analysis:

The Beaufort-Jasper County real estate market has exhibited several key trends over the past year. New Listings, Pending Sales, and Closed Sales have experienced declines in year-over-year comparisons. While the decline in New Listings suggests a decrease in seller activity, the drop in Pending and Closed Sales may indicate a cooling in buyer demand. 

However, it is worth noting that Closed Sales rebounded strongly when compared to the previous month, potentially reflecting a more dynamic short-term market situation.

Days on the market have increased significantly in the past year, pointing to a potentially more balanced market where properties may take longer to sell. This may offer buyers more options and negotiating power.

The standout feature in this market report is the impressive 9.0% increase in the median sales price, which highlights the continued desirability of the Beaufort-Jasper County area. This rise in property values suggests a strong demand for homes despite some fluctuations in sales numbers.

Moreover, the inventory levels have grown notably in the past year, giving buyers more choices, which is likely contributing to the longer average days on the market. This is a positive sign for those looking for a diverse range of housing options.

Savannah Real Estate Market Update - September 2023

In the Savannah Multi-List Corporation region, the year-to-date real estate market report shows a mix of changes and trends. Here is an overview of the market during this period:

New Listings:

• Year-to-date, the market experienced a 13% decrease in new listings. The number of new listings dropped from 9,349 to 8,138. This reduction in new listings suggests a modest decline in the number of properties entering the market.

Pending Sales:

• The number of pending sales also saw a year-to-date decrease of 9.6%, from 7,994 to 7,178. This indicates a decrease in properties moving from pending status to closed sales throughout the year.

Closed Sales:

• Closed sales declined by 13.2% year-to-date. Last year, there were 8,070 closed sales, which decreased to 7,005 this year. This decrease suggests challenges in the market for both buyers and sellers.

Days on the Market:

• One of the most significant changes year-to-date was the increase in days on the market, which went up by 40%. The average number of days a property remained on the market increased from 35 to 49 days. This extended time frame could be attributed to various market conditions and shifts in buyer and seller dynamics.

Median Sales Price:

• Despite the decline in sales and increased time on the market, the median sales price in the Savannah Multi-List Corporation region rose. Year-to-date, it increased by 8.6% to reach $327,000 in September. This demonstrates robust demand for real estate in the region and a positive outlook for homeowners.

Inventory Levels:

• The number of homes available for sale increased by 1% year-to-date, with 1,686 homes listed for sale in September 2023. This amount of inventory resulted in a 2.2 Months Supply of Inventory, suggesting a balanced market where neither buyers nor sellers hold a significant advantage.

In summary, the year-to-date real estate market in the Savannah Multi-List Corporation region showed a combination of declining sales and increased time on the market, indicating challenges in the market. However, the increase in median sales prices and the balanced inventory levels offer potential benefits for both buyers and sellers. These market trends should be closely monitored by real estate professionals and investors. Local market conditions may vary, and it's recommended to consult with a real estate expert for specific insights and guidance based on the latest data and developments.