What buyers & sellers need to take away from 2019 

The real estate market nationwide continues to be bolstered by a strong economy and a lack of inventory. Here in Hilton Head and Bluffton, the key metrics point to the fact that we’ve had a very strong 2019.

Overall listing inventory is down 12.1% from 2018, which is a considerable decline. Our closed sales were up 5.6%. 

Our median sales price increased by 3.4%, bringing it to $325,000. If we isolated Hilton Head, that figure will be a little higher, but factoring in the mainland brings it down. 

Another interesting data point is that the average days on market is down from 142 to 131 days—a strong indication that the market is performing well. The percentage of list price that sellers are receiving has seen a negligible increase (somewhere like two-tenths of a percent), putting it at 96.8%. 

Do pay close attention to your specific community. Though a lot can be gleaned from this macro-level overview, your community could be affected by a lot of different market factors. If I were you, I’d pay the most attention to the months of inventory within my neighborhood. 

 

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    The average days on market is down from 142 to 131 days—a strong indication that the market is performing well.

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Generally, the higher the months of inventory, the harder it is to sell. Again, months’ worth of inventory just means that if no additional houses were to come on the market during a certain period, it would take X amount of months to absorb that current inventory. 

If we’re hovering around six months of inventory, that’s representative of a pretty balanced market. It’s when we start dropping below that four- and five-month supply that the market swings in favor of sellers. Conversely, anything beyond six months is much more of a buyer’s market. 

Some markets have well over a year’s worth of inventory, while others are seeing only two months. The latter would be an exceptionally strong market, perhaps consisting of lower-dues communities and more affordable neighborhoods. 

The price point that continues to be the strongest in our area is, without question, the $650,000 and below mark. Properties in that range are moving the quickest. 

Our Association of Realtors produces one every year, and it’s a great resource if you’re curious about how your neighborhood looks. If you want more help interpreting some of this market data or you’re interested in buying or selling a home in 2020, don’t hesitate to reach out to me via phone or email. I’m always here to help.