June 2017 Newsletter

June 2017 Newsletter

DAYS ON THE MARKET FOR RESIDENTIAL PROPERTY.

Out of all the data needed to compile our monthly articles, I would have to say this one where we look at the “Days On the Market” or (DOM) seems to take most time to compile the data. It is quite labor intensive but I believe it is well worth the effort, in order to get the true overview of the state of the real estate market in the five main areas we normally cover.

We do look at monthly, quarterly and yearly reports, with their ups and downs, however the yearly DOM report should be the most accurate and reliable indicator as to where we are in the real estate market in any one of the five areas, and at any given price bracket.

Days on the Market Beaufort Mossy Oaks Port Royal Burton Lady’s Island
  2015      2016 2015      2016 2015          2016 2015        2016 2015       2016
$0 to $99,000 133         127 107           208 282              241 158            158 168           143
$100,000 to $199,999 135         139 132           135 135              124 139            112 124           115
$200,000 to $299,999 147         144 206           165 153              129 132            127 144           121
$300,000 to $399,999 146         250 148           121 114              150 156            239 162           178
$400,000 to $499,999 258         230 276             92 263              362 154            185 154           256
$500,000 to $599,999 103         247 219           278 342            115 306           234
$600,000 to $699,999 89           118 —             — 568               5 198            334 279           243
$700,000 to $799,999 143         186  — —                 5 127            276 366           236
$800,000 to $899,999 —            175 —             618 —                — —               149 164           173
$900,000 to $999,999 115            —  —            — —                — 701            249 403          —
$1,000,000 and up. —           179  —            — —                 306 —               163 222           295

Comparison of Average Time on the Market (2015/2016

Total 2015 Ave 150 Days                                                                            Total 2016 Ave 136 Days

Logic would dictate that all things being equal, if there are fewer homes on the market, then the time to sell each home should decrease as demand increases. There maybe one or two caveats to consider though. If a home is overpriced or it is a type of property that, for whatever reason attracts few buyers, the DOM may stay higher than for other more sought after main stream homes. These possible exceptions could include homes you would not normally associate with the Lowcountry, such a dome house or log cabins etc. Even some well-priced waterfront property can be so unique that it just takes time to find the right buyer.  It is not always price that dictates how long it will take to sell a particular home.

As we can see from the above data, the average time to sell a home overall has decreased by some 10%. This is a healthy decrease in only twelve months, but again it is indicative of the strength of the real estate market north of the Broad River. Interestingly enough only Burton had a sale in every price bracket, with Beaufort City and Ladys Island just missing the mark by one price bracket.  As to how this year will compare with 2016, only time will tell. If 2017 is not quite up to 2016, I believe it will not be because of slow demand, but will have more to do with lack of suitable affordable inventory.
By Everett Ballenger, Owner/B.I.C. of Ballenger Realty, Former President of Beaufort County Association of Realtors.