Sea Pines Plantation 2013 Year End State of the Market Report Jan. 2014 | Page 8

STATE OF THE SEA PINES MARKET HOME + VILLA SALES LOT SALES 15 179 177 161 138 13 135 134 121 121 82 61 60 7 7 57 4 1 2008 2009 2010 2011 Homes 2012 2013 2008 Villas 2009 2010 2011 2012 2013 Total closed sales for both Homes and Villas increased in 2013 over the prior year, continuing a trend-line that began back in 2009. At a pace of about 1 Home sale every other day in Sea Pines, the months of May, June and August were far-and-away the strongest closing months with 23, 24, and 22 closed Home sale respectively. Villas followed suit with May and June posting the strongest closing months. Of note, in the Home sales, roughly 30% of the closed sales in 2013 took place in the Club Course section of Sea Pines, while the “beach-block” sales represented 13% of the transactions. The balance of sales were nicely spread out among the remaining sections of the Plantation. While Lot sales took a slight drop in 2013 from 2012, the pace of Lot sales is still 2-3 times that of just a few years ago. With the inventory of resale Home listings down sharply in Sea Pines, the option of buying a Lot and building is back in-play in the market. This includes the return of a small number of spec-home builders who are seeing success in developing/selling new Home inventory, something that the marketplace lacks greatly due to the significant drop-off of building over the past 5-6 years. The Sea Pines ARB is nicely busy with building permits, and it is great to have the smell of turned-dirt and cut-lumber in the neighborhood once again. AVERAGE SALES PRICE AVERAGE DAYS ON MARKET 225 187 159 $1,000,000 159 202 198 198 $1,200,000 186 172 164 152 150 $800,000 $600,000 $400,000 $200,000 $0 2008 2009 2010 Homes 2011 2012 2013 Villas The saying goes: We won’t know we have hit bottom until we’ve passed it! As the graph shows, we are clearly bouncing around the bottom of the market in terms of average sales prices in Sea Pines. The biggest drop is behind us, but we still need the benefit of a little more time to put the bottom of the market completely in the past. As this statistic reflects the average of the mix of sales that took place across the year, the drop in 2013 for average Home prices is a function of fewer high-end sales in Sea Pines in 2013. Meanwhile, a nice handful of high-end Villa sales in 2013 had the opposite effect. The sharp decline in distressed sales was helpful in both categories, and should enable the market to s