MARKET UPDATE - May 2023
Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.
Hilton Head & Bluffton Real Estate Market Update - May 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. While there have been some challenges, there are also positive trends to highlight.
New Listings: Although new listings experienced a decline, it is worth noting that the decrease was relatively modest, with a reduction of 18.2 percent from 3,275 to 2,680. This suggests that homeowners in the region are still actively engaging with the market, and the decline may indicate a more stable and balanced environment.
Pending Sales: Similarly, pending sales saw a decrease of 14.0 percent from 2,833 to 2,436. While this decline is noteworthy, it is essential to consider that the market is still robust, as there are many buyers actively pursuing real estate opportunities in the Hilton Head and Bluffton area.
Closed Sales: Closed sales experienced a decline of 16.6 percent from 2,454 to 2,046. Although this represents a decrease, it is important to view this in the context of the overall market activity. Despite the decline, the Hilton Head and Bluffton region continues to attract buyers, and the real estate sector remains vibrant.
Days on the Market: One area where we observed an increase is the number of days on the market, which rose by 41.6 percent from 101 to 143 days. While this may initially appear concerning, it also suggests that buyers are taking more time to make informed decisions, emphasizing the importance of engaging with knowledgeable real estate professionals.
Median Sales Price: On a positive note, the median sales price experienced a slight increase to $505,965. This suggests that despite some fluctuations in market conditions, there is still value and appreciation in the Hilton Head and Bluffton real estate market. This stability benefits both sellers and buyers alike.
Inventory of Homes for Sale: The inventory of homes for sale has seen a notable increase, rising by 16.0 percent. This indicates a healthy supply of available properties in the region. The resulting 2.0 months supply for single-family homes and 2.0 months supply for condos signifies a balanced market that offers choices for prospective buyers.
In conclusion, the Hilton Head and Bluffton real estate market has shown resilience and adaptability throughout the year. While certain metrics experienced declines, it is crucial to consider the broader context and the positive aspects of the market. The increase in the median sales price and the growth in the inventory of homes for sale illustrate the continued attractiveness of the Lowcountry.
Hilton Head Island Homes- Real Estate Market Snapshot - May 2023
Year to date in 2023, new listings of homes for sale on Hilton Head were down -26.5 percent overall. Closed home sales on Hilton Head were down -26.9 percent, and the median sales price increased +7.4% percent. Days on the market increased +17.1 percent from 80 days on the market to 94 days on the market. Compared to last May, inventory of homes for sale fell -2.7 percent to 142 homes for sale in May 2023.
Hilton Head Island Condos/Villas - Real Estate Market Snapshot - May 2023
Year to date in 2023, new listings of condos/villas for sale on Hilton Head were down -20.0 percent overall. Closed condo/villas sales on Hilton Head were down -28.2 percent, and the median sales price increased by +7.2 percent. Days on the market increased +22.8 percent from 72 days on the market to 88 days on the market. Compared to last May, inventory of condos for sale rose +6.9 percent to 186 villas for sale in May 2023.
Mainland Homes (29910 and 29909) - Real Estate Market Snapshot - May 2023
Year to date in 2023, new listings of homes for sale on the Mainland were down -25.9 percent overall. Closed home sales on the Mainland were down -24.3 percent, and the median sales price increased by +21.1 percent. Days on the market increased +35.9 percent from 106 days on the market to 111 days on the market. Compared to last May, inventory of homes for sale rose +69.8 percent to 348 homes for sale in May 2023.
Beaufort Real Estate Market Update - May 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: When comparing the year-to-date (YTD) figures for this year and last year, we observe a slight decline in new listings. However, it's important to note that this decrease is relatively small, with new listings down by only -11.2 percent, from 1,495 to 1,328. Despite this slight decrease, the market remains active, and there are still ample opportunities for buyers and sellers to engage in transactions.
Pending Sales: Similarly, pending sales experienced a modest decline of -6.9 percent, going from 1,396 to 1,300. Although this decrease may indicate a slight slowdown in buyer activity, it's important to recognize that the market remains competitive and active, presenting opportunities for motivated buyers and sellers to connect.
Closed Sales: One area that experienced a more significant decline was closed sales, which decreased by -15.7 percent, from 1,249 to 1,053. While this may appear as a substantial drop, it's essential to keep in mind that real estate markets can fluctuate, and this decline does not overshadow the overall health and potential of the area's housing market.
Days on Market: Although the number of days on the market increased by +26.7 percent, from 75 to 95 days, this change is indicative of a market that allows buyers more time to make informed decisions. The increased days on the market provide an opportunity for sellers to strategically position their properties and for buyers to explore various options more thoroughly. Ultimately, this can lead to more successful and satisfying transactions for all parties involved.
Median Sales Price: On a positive note, the median sales price has risen by an impressive 10 percent, reaching $390,595. This increase signifies a healthy appreciation in property values, providing potential sellers with confidence in their investment and potential buyers with reassurance regarding the long-term value of their purchase.
Supply of Inventory: The inventory of homes for sale has risen by +35.3 percent, resulting in 1.9 months supply for single-family homes and 2.4 months supply for condos. This increase in inventory presents an excellent opportunity for buyers to explore a broader range of options and potentially negotiate favorable terms. Additionally, a healthy inventory level contributes to a more balanced and stable market overall.
In conclusion, while there have been some slight declines and changes in the Beaufort area compared to the same period last year, it is essential to view these shifts within a broader context. The real estate market in the area remains active, with opportunities for both buyers and sellers. The increase in median sales price, coupled with a growing inventory, creates an environment that fosters positive growth and potential. As always, our team of experienced REALTORS® is here to provide guidance and support to ensure that your real estate goals are achieved successfully.
Savannah Area Real Estate Market Update - May 2023
The Savannah Area real estate market has seen some notable shifts when comparing year-to-date (YTD) data from this year to the same period last year. While there have been a few challenges, there are also positive indicators that highlight the resilience and potential for growth in the area.
New Listings: One significant trend observed is a decrease in the number of new listings, which declined by -16.3 percent. However, despite this dip, the market remained active, with 3,983 new listings entering the market, indicating ongoing interest from both buyers and sellers.
Pending Sales: Pending sales also experienced a slight decline, decreasing by -10.2 percent compared to last year. However, this is not unexpected considering the unique circumstances of the current market. The fact that there were still 3,983 pending sales demonstrates continued buyer activity and the potential for future closings.
Closed Sales: Closed sales decreased by -14.5 percent, which can be partly attributed to the aforementioned decline in new listings and pending sales. However, it's important to note that 3,621 closed sales were successfully completed during this period, reflecting a resilient market that continues to facilitate real estate transactions.
Days on the Market: One notable change is the increase in the average number of days on the market. It rose by +47.5 percent, indicating that properties took slightly longer to sell compared to last year. However, a longer time on the market can also be seen as an opportunity for buyers to explore their options and make more informed decisions.
Median Sales Price: Despite these challenges, there is positive news regarding median sales price. The median sales price rose by a solid 9.1 percent, reaching an impressive $325,000. This increase in property values showcases the strength and desirability of the Savannah real estate market.
Supply of Inventory: Additionally, the inventory of homes for sale increased by +1.6 percent, resulting in a 1.9 months supply of properties. This uptick in inventory provides buyers with more options and contributes to a healthier market overall.
In conclusion, while there have been some decreases in new listings, pending sales, and closed sales, the Savannah real estate market remains active and resilient. The rise in median sales price is an encouraging sign, reflecting the strong demand for properties in the area. Despite a slight increase in the time properties spend on the market, the inventory of homes for sale has also expanded, providing buyers with a greater selection. With these factors in mind, the Savannah Area REALTORS® Service Area continues to offer opportunities for both buyers and sellers in the local real estate market.
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