2020 Real Estate Market Analysis | Hilton Head Island, SC Results_2020 Market Analysis_vs4 | Página 6

2020 market steering factors
2019 amounted to be the Lowcountry’s third
consecutive year of steady, yet measured growth
and recovery since the fall of the national real estate
market now dating back over a decade ago. Single
digit climbs in both average and median sales prices
year over year have spawned a growing sense of
confidence and stability among both buyers and
sellers, which translates into positive postures and
attitudes in the support-pillars of the real estate
market, namely lenders, appraisers and agents, all
of whom welcome a steady and predictable selling
environment free from any major up/downswings.
Based on our experience and involvement within
the marketplace, 2020 is poised (and likely) to post
quite similar results to those seen in 2019. That said,
our unique market here in the Lowcountry (and the
localized sub-markets within it) is constantly affected
by a myriad of steering factors, and these are the
primary ones that have our attention as the new year
unfolds:
DOWNSIZING AND THE
"SILVER TSUNAMI"
Roughly one in three homes in the US is owned by
someone age 60 or older. As these Baby Boomers now
look to downsize and/or make a move into a retirement
community/facility at an increasing rate, a commensurate
surge of resale inventory is expected to hit the marketplace
over the next two decades. Some national studies predict
that this segment of the seller market alone could account
for up to one million homes hitting the market per year.
We’re already experiencing our fair share of this “tsunami”
in the local market, placing an equal importance on
assisting those in this time of transition while locating the
next wave of buyers to purchase their homes.
INTEREST RATES
We only briefly mention this in that we do NOT expect
interest rates to play a significant factor in the year ahead.
Their expected rise in 2019 never materialized, and their
historic lows are expected to continue uninterrupted
through much of 2020, to the benefit of the overall
marketplace.
ELECTION YEAR
Election years, and the political uncertainty that they
imply, often result in placing a certain number of market
participants (both buyers and sellers) on the fence,
deferring their choices/decisions until they have a better
feel for how new policy proposals might impact the nature
or consequence of their planned real estate transaction.
Interestingly, though, one notable study looking at data
going back over 50 years found that the bulk of the fence-
sitting happened in the month of November itself. This isn’t
particularly surprising, nor does it cause much concern for
our local market, as we are already accustomed to seeing a
dip in market activity during times of significant distraction.
TO BUILD OR BUY?
New-home construction is back with a fury, reaching from
Sea Pines' South Beach out to I-95, and seemingly every
spot in between. This trend is placing a high demand
on supplies, labor, and resources, driving up the overall
construction cost (and, in many cases, the timeline) for
those considering building their dream home. This,
in turn, has some portion of the market giving deeper
consideration to new spec-homes, new developer products,
and newer or renovated resale properties as a more
economic and expeditious way to claim their piece of the
Lowcountry.
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TURN-KEY WISHES...
THE HGTV® TV EFFECT
In keeping with the impact of the rising
cost and timeline for construction projects, we
continue to find that buyers are prepared to pay
a premium for resale properties that have been
thoughtfully and tastefully renovated, reflecting
the quality, colors, finishes, and innovations that
are steadily depicted on the all-too-popular real
estate shows of HGTV®. In contrast, fixer-uppers
seem to be more interesting to watch on TV
than they are for buyers to purchase and take on
themselves.