Annual Report on the Hilton Head Housing Market

X0A0T Annual Report on the Hilton Head Housing Market A FREE RESEARCH TOOL FROM THE HILTON HEAD AREA ASSOCIATION OF REALTORS

Annual Report on the Hilton Head Housing Market A FREE RESEARCH TOOL FROM THE HILTON HEAD AREA ASSOCIATION OF REALTORS There is an ongoing and undeniable national housing shortage. Year-over-year inventory levels have been down in most markets for several years now, and that trend is expected to persist in 2018. Consumers are still purchasing for the first time and relocating to other, presumably more ideal homes. Having the financial ability to make a move clearly seems feasible to many eager buyers amidst a healthy economy, whether life events such as marriage, children, employment change or desirable downsizing is the reason for moving. There are further positive signs on the horizon, as builder confidence has improved and construction job gains are measurably higher. It will still take more effort than a lone year can provide for building activity to reach a needed level for inventory balance, but a step in the right direction is welcome. More sellers should feel ready and willing to list in 2018. Economic indicators such as unemployment rates and consumer confidence are in an improved state, and sellers currently hold the keys in the buyer-seller relationship. This does not mean that sellers can set their price and watch the offers roll in. On the contrary, buyers will be poised to test prevailing price points, particularly in markets where home price increases are outpacing wage growth and in light of the fact that mortgage rates are expected to increase further in 2018. Sales: Pending sales increased 15.8 percent, landing at 4,852 to close out the year. Closed sales were up 10.2 percent to finish 2017 at 4,684. Listings: Year-over-year, the number of homes available for sale was lower by 6.9 percent. There were 2,049 active listings at the end of 2017. New listings increased by 3.6 percent to finish the year at 6,369. Home supply was once again lower than desired in 2017. Distressed Properties: The foreclosure market has dwindled from its peak several years ago. In 2017, the percentage of closed sales that were either foreclosure or short sale decreased by 25.4 percent to end the year at 2.8 percent of the market. Prices: Home prices were up compared to last year. The overall median sales price increased 2.6 percent to $300,000 for the year. Prices are expected to rise at a slow rate in 2018. home prices were up 4.1 percent compared to last year, and home prices were up 2.4 percent. List Price Received: Sellers received, on average, 96.2 percent of their original list price at sale, a mild year-over-year improvement of 0.4 percent. As sales prices are expected to increase further in 2018, this may also bring original list price received at sale up as well. The historic tax reforms due to make their mark in 2018 will have varying effects across the nation. High-priced coastal markets may feel the changes stronger than the middle of the country. And some potential buyers may see the changes as providing less of an investment benefit for homeowners. Some observers warn that there might be enough lack of incentives to stifle homeownership, which is already near 50- year lows. Policymakers claim that the reforms will help boost economic activity and profitability. Whichever direction we ultimately turn, the next year appears to offer a dalliance with balance intended to intrigue both sides of the transaction toward a common middle ground. For those who have their minds made up to buy a home in 2018, it will likely be a competitive ride. The trend has widely been toward fewer days on market and fewer months of supply, indicating strong demand despite higher prices and low inventory. This could prove tricky for first-time home buyers, especially for those who are impacted by student loan debt, content to rent or among the more than 15 percent of adult children still living at home. In a landscape rife with new variables, residential real estate is certainly poised to offer an interesting and active year ahead. 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, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 2

Quick Facts New Listings Pending Sales 5,908 6,147 6,369 4,198 4,189 4,852 + 4.0% + 3.6% - 0.2% + 15.8% Top 5 Areas: Change in New Listings from 2016 Top 5 Areas: Change in Pending Sales from 2016 12: Spanish Wells + 166.7% 12: Spanish Wells + 750.0% 28: Beauf. Co - S. of Broad River + 142.9% 43: Colleton County + 200.0% 43: Colleton County + 75.0% 28: Beauf. Co - S. of Broad River + 150.0% 10: Palmetto Hall + 38.6% 10: Palmetto Hall + 133.3% 40: Jasper County + 29.8% 34: Hampton Lake + 76.5% Bottom 5 Areas: Change in New Listings from 2016 Bottom 5 Areas: Change in Pending Sales from 2016 20: Rose Hill - 33.0% 20: Rose Hill - 25.4% 44: Hampton County - 46.7% 4: Wexford - 25.9% 32: Hampton Pointe - 66.7% 44: Hampton County - 42.1% 26: Spring Island - 75.0% 35: Fripp Island - 71.4% 41: Allendale County - 77.8% 41: Allendale County - 75.0% Closed Sales Inventory of Homes for Sale At the end of the year. 4,062 4,249 4,684 2,183 2,202 2,049 + 4.6% + 10.2% + 0.9% - 6.9% Top 5 Areas: Change in Closed Sales from 2016 Top 5 Areas: Change in Homes for Sale from 2016 12: Spanish Wells + 225.0% 35: Fripp Island + 50.0% 43: Colleton County + 100.0% 9: Hilton Head Plantation + 40.8% 10: Palmetto Hall + 88.2% 24: Oldfield + 25.0% 28: Beauf. Co - S. of Broad River + 66.7% 28: Beauf. Co - S. of Broad River + 16.7% 34: Hampton Lake + 66.3% 31: Hampton Hall + 6.3% Bottom 5 Areas: Change in Closed Sales from 2016 Bottom 5 Areas: Change in Homes for Sale from 2016 4: Wexford - 32.1% 43: Colleton County - 50.0% 32: Hampton Pointe - 33.3% 41: Allendale County - 66.7% 26: Spring Island - 50.0% 32: Hampton Pointe - 75.0% 35: Fripp Island - 71.4% 26: Spring Island - 100.0% 41: Allendale County - 75.0% 46: Bamberg County - 100.0% Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 3

Quick Facts Median Sales Price Average Sales Price $276,000 $292,500 $300,000 $351,906 $375,702 $387,930 + 6.0% + 2.6% + 6.8% + 3.3% Top 5 Areas: Change in Median Sales Price from 2016 Top 5 Areas: Change in Avg. Sales Price from 2016 41: Allendale County + 806.7% 43: Colleton County + 502.0% 43: Colleton County + 295.0% 41: Allendale County + 373.3% 35: Fripp Island + 250.6% 35: Fripp Island + 137.7% 10: Palmetto Hall + 9.2% 5: Long Cove + 15.9% 22: Palmetto Bluff + 8.1% 8: Port Royal + 15.0% Bottom 5 Areas: Change in Median Sales Price from 2016 Bottom 5 Areas: Change in Avg. Sales Price from 2016 Callawassie Island - 16.2% Callawassie Island - 14.4% 12: Spanish Wells - 20.2% 24: Oldfield - 16.2% 13: Windmill Harbour - 21.3% 13: Windmill Harbour - 20.9% 28: Beauf. Co - S. of Broad River - 27.0% 28: Beauf. Co - S. of Broad River - 35.4% 26: Spring Island - 53.8% 26: Spring Island - 53.8% Days on Market Until Sale Percent of List Price Received 148 142 150 95.7% 95.8% 96.2% - 4.1% + 5.6% + 0.1% + 0.4% Top 5 Areas: Change in Days on Market from 2016 Top 5 Areas: Change in Pct. of List Price Received from 2016 12: Spanish Wells + 509.4% 26: Spring Island + 26.3% 41: Allendale County + 421.2% Daufuskie Island + 8.7% 35: Fripp Island + 264.1% 24: Oldfield + 2.7% 32: Hampton Pointe + 215.3% 41: Allendale County + 2.3% 44: Hampton County + 73.0% 35: Fripp Island + 2.2% Bottom 5 Areas: Change in Days on Market from 2016 Bottom 5 Areas: Change in Pct. of List Price Received from 2016 24: Oldfield - 17.9% 22: Palmetto Bluff - 0.7% 43: Colleton County - 19.9% 21: Berkeley Hall - 1.3% 33: Hilton Head Lakes - 21.7% 12: Spanish Wells - 1.4% 28: Beauf. Co - S. of Broad River - 55.4% 13: Windmill Harbour - 1.7% 26: Spring Island - 75.3% 32: Hampton Pointe - 3.0% Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 4

Price Range Review $100,001 to $225,000 $650,001 and Above 1.8% - 57.6% Price Range with Shortest Average Market Time Price Range with Longest Average Market Time Homes for Sale at Year End Priced One-Year Change in Homes for Sale Priced Days on Market Until Sale by Price Range Share of Homes for Sale 8% 133 7% $100,001 to $225,000 119 6% 5% $225,001 to $375,000 141 4% $375,001 to $650,000 171 3% 2% $650,001 and Above 213 1% 1-2013 1-2014 1-2015 1-2016 1-2017 $225,001 to $375,000 + 19.6% Price Range with the Most Closed Sales Price Range with Strongest One-Year Change in Sales: $375,001 to $650,000 $100,000 and Below - 13.5% Price Range with the Fewest Closed Sales Price Range with Weakest One-Year Change in Sales: Closed Sales by Price Range 1,244 1,271 1,148 1,189 1,454 1,638 827 930 1,113 322 259 224 398 458 520 $100,001 to $225,000 $225,001 to $375,000 $375,001 to $650,000 $650,001 and Above Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 5

Property Type Review 149 153 Top Areas: Market Share in 2017 7: Folly Field 93.7% 2: Forest Beach 87.2% Average Days on Market Average Days on Market 3: Shipyard 83.2% 6: Palmetto Dunes 75.8% Days on Market Until Sale This chart uses a rolling 12-month average for each data point. 180 170 160 150 140 130 120 4-2015 10-2015 4-2016 10-2016 4-2017 10-2017 14: HH / Off Plantation 63.1% Hilton Head Totals 53.1% 1: Sea Pines 43.2% 13: Windmill Harbour 34.4% Daufuskie Island 16.7% 17: Moss Creek 15.1% 8: Port Royal 13.8% 9: Hilton Head Plantation 9.2% 16: Bluffton / Off Plantation 8.5% Mainland 4.7% + 4.1% + 2.4% 96.6% 95.1% One-Year Change in Price One-Year Change in Price Pct. of List Price Received Pct. of List Price Received Median Sales Price Percent of List Price Received $305K $322K $335K 96.3% 96.3% 96.6% 94.0% 94.4% 95.1% $190K $210K $215K Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 6

Distressed Homes Review 2.8% - 25.4% Top Areas: Lender-Mediated Market Share in 2017 43: Colleton County 50.0% 44: Hampton County 42.9% Percent of Closed Sales in 2017 That Were Distressed One-Year Change in Sales of Lender-Mediated 4: Wexford 21.1% Daufuskie Island 13.3% Percent of Sales That Were Distressed 7.4% 18: Colleton River 11.1% 40: Jasper County 8.9% 21: Berkeley Hall 8.0% 4.1% 2.8% 12: Spanish Wells 7.7% 24: Oldfield 4.5% 27: Beauf. Co - N. of Broad River 4.2% 2: Forest Beach 4.1% 17: Moss Creek 4.1% Callawassie Island 3.6% 10: Palmetto Hall 3.1% + 8.7% + 6.3% + 27.4% + 55.6% Three-Year Change in Price All Properties Three-Year Change in Price Traditional Properties Three-Year Change in Price Foreclosure Three-Year Change in Price Short Sale Median Sales Price $285,000 $295,558 $303,000 $271,500 $280,000 $147,500 $174,000 $187,901 $180,000 +3.7% +2.5% +18.0% +8.0% +50.8% +3.1% Traditional Foreclosure Short Sale Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 7

Area Overviews Total Closed Sales Change from 2016 Percent Percent Distressed Months Supply of Inventory Days on Market Pct. of List Price Received 1: Sea Pines 377 + 17.4% 43.2% 1.6% 5.6 187 95.1% 2: Forest Beach 242 + 19.2% 87.2% 4.1% 5.3 161 94.8% 3: Shipyard 95 + 6.7% 83.2% 2.1% 4.7 166 95.6% 4: Wexford 19-32.1% 0.0% 21.1% 14.0 214 94.0% 5: Long Cove 28 + 12.0% 0.0% 0.0% 11.0 245 94.5% 6: Palmetto Dunes 244 + 7.5% 75.8% 2.9% 8.2 198 94.9% 7: Folly Field 142 + 15.4% 93.7% 0.7% 3.6 165 95.0% 8: Port Royal 58-9.4% 13.8% 1.7% 6.7 201 93.8% 9: Hilton Head Plantation 238-1.2% 9.2% 2.9% 4.8 135 96.1% 10: Palmetto Hall 32 + 88.2% 0.0% 3.1% 7.2 180 96.2% 11: Indigo Run 42-23.6% 0.0% 0.0% 7.0 212 96.2% 12: Spanish Wells 13 + 225.0% 0.0% 7.7% 4.8 323 91.3% 13: Windmill Harbour 32 + 60.0% 34.4% 3.1% 7.7 249 92.5% 14: HH / Off Plantation 444 + 20.0% 63.1% 2.5% 4.5 121 95.7% 16: Bluffton / Off Plantation 1,119 + 4.0% 8.5% 1.9% 3.0 119 97.1% 17: Moss Creek 73 + 30.4% 15.1% 4.1% 4.4 163 94.5% 18: Colleton River 27 + 22.7% 0.0% 11.1% 10.7 278 94.4% 19: Belfair 35 + 6.1% 0.0% 0.0% 13.7 283 94.7% 20: Rose Hill 50-24.2% 0.0% 0.0% 6.7 154 96.5% 21: Berkeley Hall 25 + 31.6% 0.0% 8.0% 13.2 301 93.4% 22: Palmetto Bluff 13-23.5% 0.0% 0.0% 8.1 219 94.8% 23: Sun City / Riverbend 599 + 2.2% 0.0% 0.5% 2.3 121 97.8% 24: Oldfield 22 + 22.2% 0.0% 4.5% 9.2 170 96.2% 26: Spring Island 1-50.0% 0.0% 0.0% 0.0 53 100.7% 27: Beauf. Co - N. of Broad River 189-2.1% 1.6% 4.2% 4.9 125 96.1% 28: Beauf. Co - S. of Broad River 10 + 66.7% 0.0% 0.0% 3.5 125 93.1% 31: Hampton Hall 51 + 10.9% 0.0% 0.0% 7.6 191 97.2% 32: Hampton Pointe 2-33.3% 0.0% 0.0% 1.0 413 94.1% 33: Hilton Head Lakes 9-18.2% 0.0% 0.0% 4.5 155 97.6% 34: Hampton Lake 133 + 66.3% 4.5% 0.0% 3.0 168 99.1% 35: Fripp Island 2-71.4% 0.0% 0.0% 4.5 608 95.5% 40: Jasper County 191 + 42.5% 2.6% 8.9% 5.1 157 95.7% 41: Allendale County 1-75.0% 0.0% 0.0% 2.0 860 89.7% 42: Barnwell County 0 -- 0.0% 0.0% 0.0 0 0.0% 43: Colleton County 4 + 100.0% 0.0% 50.0% 1.7 165 95.3% 44: Hampton County 14-17.6% 0.0% 42.9% 6.5 218 93.5% 45: Orangeburg County 0 -- 0.0% 0.0% 0.0 0 0.0% 46: Bamberg County 1 -- 0.0% 0.0% 0.0 6 56.9% Callawassie Island 28 + 7.7% 0.0% 3.6% 18.9 242 94.0% Daufuskie Island 30-6.3% 16.7% 13.3% 16.7 249 95.1% Mainland 2,111 + 5.9% 4.7% 1.4% 3.8 135 97.2% Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 8

Area Historical Median Prices 1: Sea Pines 2: Forest Beach 3: Shipyard 4: Wexford 5: Long Cove 6: Palmetto Dunes 7: Folly Field 8: Port Royal 9: Hilton Head Plantation 10: Palmetto Hall 11: Indigo Run 12: Spanish Wells 13: Windmill Harbour 14: HH / Off Plantation 16: Bluffton / Off Plantation 17: Moss Creek 18: Colleton River 19: Belfair 20: Rose Hill 21: Berkeley Hall 22: Palmetto Bluff 23: Sun City / Riverbend 24: Oldfield 26: Spring Island 27: Beauf. Co - N. of Broad River 28: Beauf. Co - S. of Broad River 31: Hampton Hall 32: Hampton Pointe 33: Hilton Head Lakes 34: Hampton Lake 35: Fripp Island 40: Jasper County 41: Allendale County 42: Barnwell County 43: Colleton County 44: Hampton County 45: Orangeburg County 46: Bamberg County Callawassie Island Daufuskie Island Mainland Change From 2016 Change From 2013 # # $ $ $450,000 $518,000 $515,000-0.6% + 14.4% $205,000 $205,000 $215,000 + 4.9% + 4.9% $282,500 $290,000 $300,000 + 3.4% + 6.2% 2$ $885,000 $990,000 $1,042,500 + 5.3% + 17.8% 8$ $675,000 $720,000 $717,500-0.3% + 6.3% 6$ $467,500 $494,000 $417,500-15.5% - 10.7% $124,900 $135,000 $143,925 + 6.6% + 15.2% $562,500 $554,000 $581,500 + 5.0% + 3.4% $410,000 $419,000 $430,000 + 2.6% + 4.9% $530,000 $526,500 $574,875 + 9.2% + 8.5% $587,500 $625,000 $628,750 + 0.6% + 7.0% $886,250 $1,127,500 $900,000-20.2% + 1.6% $555,000 $607,000 $477,500-21.3% - 14.0% $149,000 $166,750 $174,950 + 4.9% + 17.4% $215,000 $231,450 $250,000 + 8.0% + 16.3% $370,000 $372,500 $360,000-3.4% - 2.7% $589,000 $842,500 $845,000 + 0.3% + 43.5% 6$ $605,000 $616,250 $595,000-3.4% - 1.7% $330,000 $347,293 $369,000 + 6.3% + 11.8% $647,000 $580,000 $600,000 + 3.4% - 7.3% 6$ $1,187,500 $1,110,000 $1,200,000 + 8.1% + 1.1% $257,500 $275,000 $284,975 + 3.6% + 10.7% 2$ $655,000 $680,000 $595,000-12.5% - 9.2% $0 $1,581,000 $730,000-53.8% -- $183,500 $225,000 $239,500 + 6.4% + 30.5% $212,500 $560,000 $408,750-27.0% + 92.4% $525,000 $531,998 $530,000-0.4% + 1.0% $360,000 $276,000 $244,950-11.3% - 32.0% $324,535 $339,930 $339,900-0.0% + 4.7% 2$ $500,000 $484,995 $493,615 + 1.8% - 1.3% $535,000 $358,000 $1,255,000 + 250.6% + 134.6% $143,000 $165,000 $164,000-0.6% + 14.7% $0 $37,500 $340,000 + 806.7% -- $0 $0 $0 -- -- $199,000 $20,950 $82,750 + 295.0% - 58.4% $86,000 $57,000 $57,750 + 1.3% - 32.8% 6$ $0 $0 $0 -- -- $0 $0 $170,000 -- -- $331,950 $477,500 $400,000-16.2% + 20.5% $356,225 $298,725 $300,000 + 0.4% - 15.8% 2$ $254,950 $270,000 $287,500 + 6.5% + 12.8% 02 Current as of January 10, 2018. Data 2018 MLS of Hilton Head Island. All Rights Reserved. Provided by the Hilton Head Area Association of REALTORS. Report 2018 ShowingTime. 9