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.