June 2016 Newsletter

June 2016 Newsletter

DAYS ON THE MARKET FOR RESIDENTIAL PROPERTY.

Real estate inventory has gradually been decreasing over that past two to three years, as the market has gradually improved. This should not be a surprise to anyone, as there was such a decrease in residential home building back in the dark ages of the “Great Recession”, that eventually it would have to catch up to us in the real estate industry. Having said the above, does it mean houses are selling faster than they were say a year ago? Well maybe – maybe not. I will say about inventory…or the lack of it. Back in the days – before the real estate crash, we had nowhere the inventory we have now, yet did substantially more business than we did right up to last year.

Comparison of Average Time on the Market (2014/2015

Total 2014 Ave 176 Days                                                      Total 2015 Ave 150 Days

In 2015 the total day on the market for residential property reduced on average some 15%. Which is quite a strong reduction. The price ranges between $100,000 and $299,999 saw the

Days on the Market Beaufort Mossy Oaks Port Royal Burton Lady’s Island
 2014       2015 2014      2015 2014          2015 2014        2015 2014       2015
$0 to $99,000 171       133  88           107 125              282 147            158 76             168
$100,000 to $199,999 165       135 166          132 188              135 160            139 185           124
$200,000 to $299,999 139       147 164          206 188              153 163            132 153           144
$300,000 to $399,999 263       146 107          148 294              114 224            156 133           162
$400,000 to $499,999 301       258 83            276 283              263 184            154 314           154
$500,000 to $599,999 216       103 221          219 434            342 327           306
$600,000 to $699,999 363         89 —             — 81               568 205            198 167           279
$700,000 to $799,999 257        143 38             — 184              — 172            127 159           366
$800,000 to $899,999 361        — —             — —                — 181 346           164
$900,000 to $999,999 —           115  —            — —                — —               701 —              403
$1,000,000 and up. 582        549  —            — 146              — —                — 167           222

most reduction in Days On the Market or (DOM). This is not surprising, as this price range encompasses the home prices that typically have sold the most over the 2015 time period.

But even further up the price range there were some reductions, although not across the board. I would note that we are looking at the year ending December 31 2015. So far this year homes seem to selling at a brisker rate. It was not unusual to have one or two homes sell in just a matter of days, but over the last month or so, we seem to getting more and more homes go under contract in just a matter of days. Maybe the lower inventory is finally putting pressure on buyers to make a decision to buy sooner – rather than later. As we have mentioned before, a lot goes into selling a home. Condition, cleanness, clutter, competition, location and of course price will all have an effect on how long a home stays on the market. A home owner selling can do a lot to improve the “salability” of a property, and also reduce DOM.
By Everett Ballenger, Owner/B.I.C. of Ballenger Realty, Former President of Beaufort County Association of Realtors.