Hilton Head Island 2017 Year in Review
It's been nearly 2 weeks since we ended 2017 and went leaping - after nearly being frozen in place for a week - into 2018. 2017 for Hilton Head Island and indeed for the area was a very good year! Sales were up, prices were stable, buyers were able to find both new and resale homes, and homes in nearly all the price points were able to go under contract relatively quickly.
For December, 2016, there were 275 - for December, 2018 we had 327. The months' supply of inventory depends greatly on the price point; for example, in the $100,000 price range, the inventory is down 51% representing 2 months of inventory, $100,000-$225,000 down 24% for 2.8 months. For $225,000 to $375,000 down 15% representing 3.9 months. The upper tier market is even down 18% with 12 months of inventory.
PRICE POINT AVAILABILITY
We continue to see the demand for lower cost housing on Hilton Head (and throughout Beaufort County). This is indicated by the fact that there are only 36 homes in the $100,000 and under range, 275 in the $100,000 to $225,000 then we jump to 526 homes available in the $225,000 to $375,000 range. There are 601 homes in the $650,000 and up range. Our economy is changing from a predominantly second home/retiree/investor market to one with demand for affordable housing. A demand that is not being met and results in our teachers, firefighters, police officers, and hospitality people moving onto the mainland - and beyond.
This issue is represented in the housing affordability index which is going down in our area. So an index of 120 would mean that the median household income is 120% of what is needed to qualify for a median priced home with prevailing interest rates; i.e., a higher number means greater affordability. We are currently at 79 - a number that has indeed been steadily dropping.
MEDIAN SALES PRICE
The interesting statistic is that the median sales price on Hilton Head seems to be very low - it is good to remember that a median represents the fact that there are prices above and below the point - unlike an average which adds all the sales and then divides by the number of closings. A median number is, in real estate, most always lower than an average.
For specific sales, and averages, please CALL ME and let me know which of the island communities you are interested in and I'll be happy to provide that for you!
The information has been provided by the Hilton Head Area Multiple Listing Service and the Hilton Head Area Association of Realtors, January, 2018.