Monthly Indicators 2016 We are in the thick of an exciting period of home buying and selling, often with quick multiple offers that are near, at or even above asking price, depending on the factors of the home and submarket in question. It was widely predicted that we would see healthy sales activity during the second quarter of 2016, and the market has not disappointed. New Listings were up 15.4 percent to 599. Pending Sales increased 29.2 percent to 487. Inventory shrank 1.7 percent to 2,443 units. Prices moved higher as Median Sales Price was up 6.9 percent to $297,500. Days on Market decreased 10.5 percent to 136 days. Months Supply of Inventory was down 17.5 percent to 6.6 months, indicating that demand increased relative to supply. Although inventory is still being stretched thin in many areas, low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. How long that can continue without fresh supply remains an important question, but conditions are seemingly good enough for serious buyers. With the current slow state of new construction for non-rental households, the road ahead could be tricky if demand remains high. Quick Facts + 12.9% + 6.9% - 1.7% One-Year Change in Closed Sales One-Year Change in Median Sales Price Market Overview New Listings Pending Sales Closed Sales Days on Market Until Sale Median Sales Price Average Sales Price Percent of List Price Received Housing Affordability Index Inventory of Homes for Sale Months Supply of Inventory One-Year Change in Months Supply A research tool provided by the Hilton Head Association of REALTORS Percent changes are calculated using rounded figures. 2 3 4 5 6 7 8 9 10 11 12 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 1
Market Overview Key market metrics for the current month and year-to-date figures. Key Metrics Historical Sparkbars 05-2014 05-2015 05-2016 05-2015 05-2016 YTD 2015 YTD 2016 New Listings 519 599 + 15.4% 2,734 3,028 + 10.8% Pending Sales 377 487 + 29.2% 1,739 1,974 + 13.5% Closed Sales 388 438 + 12.9% 1,534 1,649 + 7.5% Days on Market 152 136-10.5% 157 144-8.3% Median Sales Price $278,415 $297,500 + 6.9% $265,000 $291,000 + 9.8% Average Sales Price $363,302 $371,526 + 2.3% $355,543 $381,962 + 7.4% Pct. of List Price Received 95.8% 95.4% - 0.4% 95.4% 95.6% + 0.2% Housing Affordability Index 90 84-6.7% 95 86-9.5% Inventory of Homes for Sale 2,486 2,443-1.7% -- -- -- Months Supply of Inventory 8.0 6.6-17.5% -- -- -- Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 2
New Listings A count of the properties that have been newly listed on the market in a given month. 599 3,028 519 2,734 445 2,358 -- + 16.6% + 15.4% -- + 15.9% + 10.8% New Listings Prior Year June 2015 516 446 +15.7% July 2015 458 430 +6.5% August 2015 478 403 +18.6% September 2015 505 452 +11.7% October 2015 485 466 +4.1% November 2015 393 314 +25.2% December 2015 339 283 +19.8% January 2016 555 460 +20.7% February 2016 568 497 +14.3% March 2016 684 684 0.0% April 2016 622 574 +8.4% 2016 599 519 +15.4% 12-Month Avg 517 461 +12.2% Historical New Listings by Month 800 700 600 500 400 300 200 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 3
Pending Sales A count of the properties on which offers have been accepted in a given month. 487 1,974 1,739 377 333 944 -- + 13.2% + 29.2% -- + 84.2% + 13.5% Pending Sales Prior Year June 2015 466 337 +38.3% July 2015 445 317 +40.4% August 2015 350 273 +28.2% September 2015 309 289 +6.9% October 2015 305 285 +7.0% November 2015 325 257 +26.5% December 2015 271 244 +11.1% January 2016 288 312-7.7% February 2016 351 308 +14.0% March 2016 408 376 +8.5% April 2016 440 366 +20.2% 2016 487 377 +29.2% 12-Month Avg 370 312 +18.8% Historical Pending Sales by Month 600 500 400 300 200 100 0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 4
Closed Sales A count of the actual sales that closed in a given month. 1,649 438 1,534 388 333 453 -- + 16.5% + 12.9% -- + 238.6% + 7.5% Closed Sales Prior Year June 2015 422 354 +19.2% July 2015 429 345 +24.3% August 2015 377 340 +10.9% September 2015 355 273 +30.0% October 2015 330 330 0.0% November 2015 248 254-2.4% December 2015 366 312 +17.3% January 2016 284 227 +25.1% February 2016 234 245-4.5% March 2016 326 340-4.1% April 2016 367 334 +9.9% 2016 438 388 +12.9% 12-Month Avg 348 312 +11.6% Historical Closed Sales by Month 500 400 300 200 100 0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 5
Days on Market Until Sale Average number of days between when a property is listed and when an offer is accepted in a given month. 146 152 157 144 144 136 Historical Days on Market Until Sale by Month -- + 4.1% - 10.5% -- + 9.0% -8.3% Days on Market Prior Year June 2015 151 143 +5.6% July 2015 141 144-2.1% August 2015 156 166-6.0% September 2015 137 161-14.9% October 2015 137 159-13.8% November 2015 146 158-7.6% December 2015 131 167-21.6% January 2016 154 157-1.9% February 2016 148 165-10.3% March 2016 146 157-7.0% April 2016 143 156-8.3% 2016 136 152-10.5% 12-Month Avg* 143 157-8.9% * Average Days on Market of all properties from June 2015 through 2016. This is not the average of the individual figures above. 200 150 100 50 0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 6
Median Sales Price Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month. $297,500 $291,000 $278,415 $251,540 $255,000 $265,000 Historical Median Sales Price by Month -- + 10.7% + 6.9% -- + 3.9% + 9.8% Median Sales Price Prior Year June 2015 $290,000 $283,245 +2.4% July 2015 $275,000 $245,000 +12.2% August 2015 $284,000 $255,458 +11.2% September 2015 $283,700 $240,000 +18.2% October 2015 $284,968 $281,483 +1.2% November 2015 $277,233 $268,950 +3.1% December 2015 $300,875 $275,000 +9.4% January 2016 $300,650 $236,000 +27.4% February 2016 $290,000 $264,500 +9.6% March 2016 $274,500 $250,000 +9.8% April 2016 $290,000 $277,450 +4.5% 2016 $297,500 $278,415 +6.9% 12-Month Med* $287,500 $264,900 +8.5% * Median Sales Price of all properties from June 2015 through 2016. This is not the median of the individual figures above. $400,000 $300,000 $200,000 $100,000 $0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 7
Average Sales Price Average sales price for all closed sales, not accounting for seller concessions, in a given month. $363,302 $371,526 $381,962 $324,120 $355,543 $328,213 Historical Average Sales Price by Month -- + 12.1% + 2.3% -- + 8.3% + 7.4% Avg. Sales Price Prior Year June 2015 $343,818 $381,652-9.9% July 2015 $340,330 $324,040 +5.0% August 2015 $360,701 $351,048 +2.7% September 2015 $346,190 $364,815-5.1% October 2015 $347,964 $339,338 +2.5% November 2015 $343,607 $359,992-4.6% December 2015 $365,266 $354,993 +2.9% January 2016 $379,216 $334,394 +13.4% February 2016 $405,623 $339,738 +19.4% March 2016 $355,241 $348,270 +2.0% April 2016 $405,163 $379,902 +6.6% 2016 $371,526 $363,302 +2.3% 12-Month Avg* $363,721 $353,457 +2.9% * Avg. Sales Price of all properties from June 2015 through 2016. This is not the average of the individual figures above. $500,000 $400,000 $300,000 $200,000 $100,000 $0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 8
Percent of List Price Received Percentage found when dividing a property s sales price by its most recent list price, then taking the average for all properties sold in a given month, not accounting for seller concessions. 94.9% 95.8% 95.4% 95.0% 95.4% 95.6% Historical Percent of List Price Received by Month -- + 0.9% - 0.4% -- + 0.4% + 0.2% Pct. of List Price Received Prior Year June 2015 95.9% 95.9% 0.0% July 2015 96.0% 95.6% +0.4% August 2015 95.5% 94.9% +0.6% September 2015 96.1% 95.2% +0.9% October 2015 95.9% 95.6% +0.3% November 2015 96.1% 95.4% +0.7% December 2015 95.9% 95.5% +0.4% January 2016 94.9% 95.3% -0.4% February 2016 95.6% 95.6% 0.0% March 2016 96.0% 95.3% +0.7% April 2016 96.1% 95.1% +1.1% 2016 95.4% 95.8% -0.4% 12-Month Avg* 95.8% 95.4% +0.4% * Average Pct. of List Price Received for all properties from June 2015 through 2016. This is not the average of the individual figures above. 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 9
Housing Affordability Index This index measures housing affordability for the region. For example, an index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. 95 95 86 96 90 84 -- - 6.3% - 6.7% -- 0.0% -9.5% Affordability Index Prior Year June 2015 85 85 0.0% July 2015 88 98-10.2% August 2015 86 95-9.5% September 2015 87 100-13.0% October 2015 87 86 +1.2% November 2015 88 91-3.3% December 2015 82 89-7.9% January 2016 81 106-23.6% February 2016 87 95-8.4% March 2016 91 99-8.1% April 2016 87 90-3.3% 2016 84 90-6.7% 12-Month Avg 86 94-8.1% Historical Housing Affordability Index by Month 120 100 80 60 40 20 0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 10
Inventory of Homes for Sale The number of properties available for sale in active status at the end of a given month. 2,655 2,486 2,443 -- -1.7% -- -6.4% Historical Inventory of Homes for Sale by Month -1.7% Homes for Sale Prior Year June 2015 2,391 2,606-8.3% July 2015 2,262 2,559-11.6% August 2015 2,255 2,540-11.2% September 2015 2,323 2,555-9.1% October 2015 2,355 2,562-8.1% November 2015 2,291 2,468-7.2% December 2015 2,167 2,302-5.9% January 2016 2,240 2,218 +1.0% February 2016 2,327 2,277 +2.2% March 2016 2,451 2,405 +1.9% April 2016 2,486 2,485 +0.0% 2016 2,443 2,486-1.7% 12-Month Avg* 2,333 2,486-6.1% * Homes for Sale for all properties from June 2015 through 2016. This is not the average of the individual figures above. 2,600 2,500 2,400 2,300 2,200 2,100 01-2015 01-2016 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 11
Months Supply of Inventory The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months. 27.6 8.0 6.6 -- - 71.0% - 17.5% Historical Months Supply of Inventory by Month Months Supply Prior Year June 2015 7.4 20.1-63.2% July 2015 6.8 15.9-57.2% August 2015 6.6 14.8-55.4% September 2015 6.8 14.1-51.8% October 2015 6.9 12.5-44.8% November 2015 6.6 10.9-39.4% December 2015 6.2 9.4-34.0% January 2016 6.4 8.2-22.0% February 2016 6.6 7.8-15.4% March 2016 6.9 7.9-12.7% April 2016 6.9 8.1-14.8% 2016 6.6 8.0-17.5% 12-Month Avg* 6.7 11.5-41.7% * Months Supply for all properties from June 2015 through 2016. This is not the average of the individual figures above. 300.0 250.0 200.0 150.0 100.0 50.0 0.0 Current as of June 10, 2016. Data is Copyright 2014 All Rights Reserved. MLS of Hilton Head Island. Provided by the Hilton Head Area Association of REALTORS and South Carolina REALTORS. Powered by ShowingTime 10K. 12