2015 Collins Group Realty State of the Market Report 1

ϮϬϭϱDŽŶƚŚůǇdŽƚĂůƐŽĨ/ƐůĂŶĚͲtŝĚĞ EĞǁ>ŝƐƚŝŶŐƐ͕WĞŶĚŝŶŐĂŶĚůŽƐĞĚ,ŽŵĞ^ĂůĞƐ ϭϰϬ ϭϮϬ ϭϬϬ ϴϬ EĞǁ>ŝƐƚŝŶŐƐ WĞŶĚŝŶŐƐ ϲϬ ůŽƐĞĚ^ĂůĞƐ ϰϬ ϮϬ Ϭ :ĂŶƵĂƌǇ &ĞďƌƵĂƌǇ DĂƌĐŚ Ɖƌŝů DĂǇ :ƵŶĞ Island continues to enjoy a strong marketplace for both vacation and long-term rentals is a huge factor in driving sales. In many cases, second-homes are made more affordable as vacation-rental-income helps to off-set carrying costs. Meanwhile, quality long-term rental potential can help “bridge” the timing of a prospect’s purchase/ownership such that they can buy now, rent the property out for a year or two, and then retire/move-in when they are actually ready to make the move to HHI. Especially in light of the high tax rate for non-primary properties in Beaufort County, the strength of the short-term and long-term rental markets is welcomed news to buyer prospects! Softer Insurance Market Back in 2012, the scare of escalating flood insurance caused a stir in the local marketplace. The timing and scope of NFIP subsidy changes ultimately quelled this concern, and flood premium increases have not been as dramatic as a result. Meanwhile, the homeowners property insurance marketplace has become increasingly competitive over the past several years, due to fewer storms and the resulting lower cost of reinsurance. Of course, insurance markets can change quickly, but at this time we are hearing from local agents that premiums are competitive...and it might be an opportune time to evaluate different quotes for the most attractive coverage and costs. For real estate, anything that might help the bottom-line ultimately helps the market, so this is a helpful development at this time. :ƵůǇ ƵŐƵƐƚ ^ĞƉƚĞŵďĞƌ KĐƚŽďĞƌ EŽǀĞŵďĞƌ ĞĐĞŵďĞƌ A Buyer’s-Market Mentality The real estate market doesn’t change overnight, and neither do consumer mindsets. HHI (for the most part) has been a buyer’s market since 2008, but the market data suggests a change is in progress in many of the island neighborhoods. Getting buyers to acknowledge this change takes time, unfortunately leading to some buyers missing key buying opportunities in the meantime. The “Be-Backs” Actually Come Back Not even 5 years ago, we saw a trend of buyers who would come to the Island to look at real estate, only to state that they would “be-back” once they could sell their residence back home. In most cases, they didn’t come back anytime soon… Well, thanks to a substantial strengthening of the majority of market-places in our main feeder-markets, we are seeing more and more “be-backs” successfully sell their homes in short order, returning to HHI to purchase with greater regularity and financial confidence. 94% OUR 2015 ISLAND LISTINGS’ SALES PRICE TO ORIGINAL LIST PRICE State of the Market 5

2015 Collins Group Realty State of the Market Report 1 | Page 5