July 2018 Market Report

Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present. Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.

New Listings were up 7.6 percent to 541. Pending Sales increased 25.4 percent to 519. Inventory shrank 5.9 percent to 2,161 units. Prices moved higher as Median Sales Price was up 2.8 percent to $298,158. Days on Market decreased 17.8 percent to 125 days. Months Supply of Inventory was down 18.0 percent to 5.0 months, indicating that demand increased relative to supply. Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else. With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.

For the 12-month period spanning August 2017 through July 2018, Pending Sales in the Hilton Head region were up 15.9 percent overall. The price range with the largest gain in sales was the $650,001 and Above range, where they increased 23.6 percent. The overall Median Sales Price was up 5.1 percent to $310,000. The property type with the largest price gain was the Condos / Villas segment, where prices increased 6.2 percent to $223,000. The price range that tended to sell the quickest was the $100,001 to $225,000 range at 111 days; the price range that tended to sell the slowest was the $650,001 and Above range at 199 days. Market-wide, inventory levels were down 5.9 percent. The property type that lost the least inventory was the Condos segment, where it decreased 1.0 percent. That amounts to 5.0 months supply for Single-Family homes and 4.7 months supply for Condos.

Posted by Christina Galbreath-Gonzalez on

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