2018 Annual Report 2018-Annual-Report (1) | Page 2
Annual Report on the Hilton Head Housing Market
A FREE RESEARCH TOOL FROM THE HILTON HEAD AREA ASSOCIATION OF REALTORS®
While the 2017 housing market was marked by renewed
optimism fueled by stock market strength, higher wages and
a competitive environment for home sales, 2018 delivered a
more seasoned prudence toward residential real estate.
Home buyers, now steeped in several years of rising prices
and low inventory, became more selective in their purchase
choices as housing affordability achieved a ten-year low.
Yet the appetite for home buying remained strong enough to
drive prices upward in virtually all markets across the
country. In fact, national home prices have risen 53 percent
from February 2012 to September 2018. That mark is a less
dramatic but still sizable 40 percent increase when inflation is
factored in.
The national median household income was last reported
with a year-over-year increase of 1.8 percent, while home
prices have gone up 5.5 percent in roughly the same amount
of time. That kind of gap can't be sustained indefinitely, but
prices are still expected to rise in most areas, albeit at a
much slower pace.
Sales: Pending sales increased 9.0 percent, closing 2018 at
5,246. Closed sales were up 9.8 percent to finish the year at
5,157.
Listings: Year-over-year, the number of homes available for
sale was higher by 5.9 percent. There were 2,231 active
listings at the end of 2018. New listings increased by 11.1
percent to finish the year at 7,076.
Distressed Properties: The foreclosure market continues
to be a hint of its former unhealthy peaks. In 2018, the
percentage of closed sales that were either foreclosure or
short sale decreased by 9.3 percent to end the year at 2.3
percent of the market.
Prices: Home prices were up compared to last year. The
overall median sales price increased 5.0 percent to $314,995 for
the year. Detached home prices were up 2.9 percent compared
to last year, and Attached home prices were up 5.1 percent.
List Price Received: Sellers received, on average, 96.6
percent of their original list price at sale, a year-over-year
improvement of 0.4percent. If demand shrinks in 2019, original
list price received at sale could drop as well.
Consumer optimism has been tested by four interest rate hikes
by the Federal Reserve in 2018. Meanwhile, GDP growth was at
4.2 percent in Q2 2018, dropped to 3.4 percent in Q3 2018 and
is expected to be about 2.9 percent in Q4 2018 when figures are
released.
Looking strictly at market fundamentals, recent Fed and GDP
changes will not cause a dramatic shift away from the current
state of the housing market. The booming sales at increased
prices over the last several years may not be the same thrill ride
to observe in 2019, but a long-awaited increase in inventory is
something positive to consider, even if it arrives in the form of
shrinking demand amidst rising mortgage rates.
The biggest potential problem for residential real estate in 2019
might be human psychology. A fear of buying at the height of the
market could create home purchase delays by a large pool of
potential first-time buyers, thus creating an environment of
declining sales.
If the truth of a positive economic outlook coupled with
responsible lending practices and more available homes for sale
captures the collective American psyche, the most likely
outcome for 2019 is market balance.
Table of Contents
3 Quick Facts
5 Price Range Review
6 Property Type Review
7 Distressed Homes Review
8 Area Overviews
9 Area Historical Prices
Current as of January 10, 2019. Data © 2019 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS®. Report © 2019 ShowingTime. | 2