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)

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

Total 2014 Ave 176 Days / Total 2015 Ave 150 Days

Days on Market Beaufort Mossy Oaks Port Royal Burton Lady's Island
$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 $599,999 216/103 221/19 -- 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.