MARKET UPDATE - JUNE 2023

Despite the rising temperatures, the U.S. housing market is experiencing cooler conditions than expected for this time of year. The reason behind this trend is a combination of factors, including a low inventory of homes and higher borrowing costs, which have led to a decrease in market activity during the peak summer homebuying season.

According to the most recent data released by the National Association of REALTORS® (NAR), existing-home sales saw a slight increase of 0.2% from the previous month. However, compared to the same period last year, there was a significant decline of 20.4%. This drop in sales can be attributed to fluctuating mortgage rates and a historically low level of available homes for buyers to choose from, both of which have had a notable impact on the overall housing market.

On a positive note, the total housing inventory has increased by 3.8% in the nation. Currently, there is a three-month supply of homes available at the current sales pace. Despite this increase in inventory, the shortage of homes for sale remains a challenge. The limited supply has caused home prices to remain high for those still in the market, with the national median sales price reaching $396,100, indicating a 3.1% decrease from the same period last year. This is the most significant annual price decline since December 2011, as reported by NAR.

Due to the high demand surpassing the limited supply of available homes, properties are selling rapidly. In fact, the majority of homes listed for sale are being purchased in less than a month, showcasing the continued urgency in the market. As the summer homebuying season progresses, it will be important to monitor how these factors continue to influence the U.S. housing market.

Hilton Head & Bluffton Real Estate Market Update - June 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: Though new listings experienced a slight decline of 16.8%, falling from 3,998 to 3,328, it is important to note that the market has remained active, and there are still properties available for buyers to explore.

Pending Sales: While the number of pending sales decreased by 13.4% from 3,378 to 2,927, 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 15.3% in closed sales from 3,132 to 2,653, 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 50%, rising from 98 to 147 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 impressive increase of 6.1%, reaching $505,038. 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: The 9.2% increase in the inventory of homes for sale when comparing this June to last June provides prospective buyers with a broader selection of properties to choose from, promoting a healthy and vibrant market.

In conclusion, the Hilton Head Island and Bluffton real estate market has demonstrated resilience and strength through the Mid-Year of 2023. As the region continues to attract interest and maintain its appeal, real estate professionals remain optimistic and adapt their strategies to leverage the opportunities present in this dynamic market. With favorable conditions for buyers and sellers alike, the Lowcountry real estate market shows promise for the coming months.

View the full report here.

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

Year to date in 2023, new listings of homes for sale on Hilton Head were down -23.3 percent overall. Closed home sales on Hilton Head were down -28.8 percent, and the median sales price increased +10.6% percent. Days on the market increased +12.7 percent from 81 days on the market to 91 days on the market. Compared to last June, inventory of homes for sale fell -3.3 percent to 146 homes for sale in June 2023.

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

Year to date in 2023, new listings of condos/villas for sale on Hilton Head were down -20.4 percent overall. Closed condo/villas sales on Hilton Head were down -24.9 percent, and the median sales price increased by +14.3 percent. Days on the market increased +49.6 percent from 69 days on the market to 103 days on the market. Compared to last June, inventory of condos for sale rose +2.4 percent to 216 villas for sale in June 2023.

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

Year to date in 2023, new listings of homes for sale on the Mainland were down -23.9 percent overall. Closed home sales on the Mainland were down -23.0 percent, and the median sales price increased by +14.7 percent. Days on the market increased +29.9 percent from 87 days on the market to 113 days on the market. Compared to last June, inventory of homes for sale rose +18.8 percent to 366 homes for sale in June 2023.

Beaufort Real Estate Market Update - June 2023

Below is the real estate market update for the Beaufort-Jasper County REALTORS® service area. While there have been some shifts in the market compared to the same period last year, there are still positive indicators that showcase the region's resilience and potential for growth.

New Listings: New listings in the Beaufort-Jasper County service area experienced a modest decline of 12.9%, with the number of new properties entering the market decreasing from 1,819 to 1,587. While this may appear to be a decrease, it also indicates a healthy market, as it suggests a balance between supply and demand, which can benefit both buyers and sellers.

Pending Sales: Similarly, pending sales showed a decrease of 4.9%, declining from 1,633 to 1,553. This decrease can be attributed to various factors, including a competitive market and the lingering effects of external factors. However, it is essential to note that this decline is relatively moderate, indicating that the market remains active and engaging for potential buyers.

Closed Sales: Closed sales also experienced a decline of 9.1%, going from 1,540 to 1,400. While this figure may initially seem concerning, it is important to keep in mind that last year's real estate market was highly exceptional due to various factors. Despite the slight decrease in closed sales, we can confidently say that the market is still performing admirably and provides numerous opportunities for both buyers and sellers.

Days on Market: One notable aspect to consider is the increase in days on the market by 32.4%, from 74 to 98. This may be indicative of properties taking slightly longer to sell, possibly due to the increase in inventory or other market dynamics. However, this statistic should not be alarming, as it still represents a relatively short time frame, reflecting the region's continued desirability.

Median Sales Price: A particularly bright spot in the market update is the median sales price, which has increased by an impressive 9.5% to $395,284. This significant increase demonstrates the value and attractiveness of properties in the Beaufort-Jasper County area. For homeowners, this trend represents excellent potential for building equity, while for buyers, it showcases the quality of homes available.

Supply of Inventory: The inventory of homes for sale increased by 4.6% when comparing this June to the previous year. This increase in available properties contributes to a more balanced market and offers prospective buyers a broader range of options to choose from, promoting a healthy and dynamic real estate environment.

In conclusion, the Beaufort, SC, area continues to show strength and prosperity in the real estate market, even amidst certain declines in certain metrics. The region's stability and growth are evident through the increase in median sales price, while the slight decreases in new listings, pending sales, and closed sales indicate a balanced and healthy market. With a wider inventory of homes available, both buyers and sellers have plenty of opportunities to engage in successful real estate transactions. As we progress through the year, we look forward to witnessing further positive developments in the Beaufort real estate market.

Read the Full Report Here

Savannah Area Real Estate Market Update - June 2023

The Savannah Area real estate market has showcased remarkable strength and adaptability throughout the year 2023, despite facing some challenges. A comparison of year-to-date (YTD) figures with the same period last year reveals the market's steady growth and overall positive trends.

New Listings: One of the key highlights of the market's performance is the reduction in new listings, down 15.6% from 6,362 to 5,370. While this might indicate a potential decrease in supply, it has also contributed to a surge in demand, creating a more competitive environment for homebuyers.

Pending Sales: Although pending sales experienced a 9.1% decline from 5,379 to 4,889, this should not overshadow the fact that the market has remained resilient. Despite the drop, a considerable volume of properties are still under contract, demonstrating continued interest from buyers.

Closed Sales: Similarly, closed sales dipped by 13.6% from 5,312 to 4,592. However, this decrease can be viewed in the context of the reduced new listings and pending sales figures, indicating a well-balanced market.

Days on the Market: An essential factor to consider is the increase in the number of days on the market, rising by 43.6% from 39 to 56. While this might raise some concerns, it's worth noting that the market's overall performance has remained solid, and properties are still moving at a relatively reasonable pace.

Median Sales Price: The most impressive aspect of the Savannah Area real estate market is the growth in the median sales price, which surged by 8.7% to reach an impressive $326,305. This notable increase in property values signifies a strong demand for homes and reflects the market's ability to sustainably appreciate.

Supply of Inventory: Moreover, the reduction in inventory of homes for sale by 6.3% compared to last June has contributed to the healthy median sales price increase. With fewer properties available, buyers are motivated to compete, further driving up property values.

In conclusion, despite some declines in new listings, pending and closed sales, and an increase in days on the market, the Savannah Area real estate market has shown commendable resilience and adaptability in 2023. The substantial 8.7% rise in median sales price and the reduced inventory of homes for sale indicate a healthy and prosperous market. Whether you are a buyer or a seller, these trends signify that the Savannah Area real estate market continues to offer opportunities and remains an attractive and stable investment option in the region.