2017 Annual Report Hilton-Head_ANN_2017 | Page 2

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.
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.
Detached home prices were up 4.1 percent compared to last
year, and Attached 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.
Distressed Properties: The foreclosure market has Table of Contents
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. 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