Grand Strand First Quarter 2012 Market Report

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One of the best indicators of how our property market is performing is to gauge the previous quarter as well as the one that passed prior to that.  So as always, here are some important figures that we have seen coming out of the first quarter of 2012.  Here is an overview: inventory levels are down, the number of distressed sales in inventory is also down, sales are on the rise but we are still seeing a significant number of distressed sales in contracts still pending.

Inventory

Right now, we are reporting that inventory is down overall by about 5%.  This slight decrease is good news, indicating a positive trend toward a more balanced market. Typically we experience a jump in inventory around this time of year – as much as fifteen to twenty percent – but fewer homes on the market leads to higher prices so this is a welcome change in our marketplace. Currently there are approximately 4,200 homes listed on the market and of the active inventory about 10% or 485 of them are distressed properties (either foreclosed homes or short sales).

Sales

Looking at the end of the fourth quarter last year and the beginning of the first quarter of 2012, we are seeing that closed transactions are about equal for both single-family homes and condominiums.  The total number of houses sold in the first quarter of this year totaled 929 with 299 of them being short sales or foreclosures – almost a third of the total sales.  Similarly, of the 785 condos sold, nearly a third of them were distressed sales with 271 being short sales or foreclosures.

Pending Sales

The most interesting activity lies within the deals that went under contract.  The previous quarter resulted in 1,065 homes under contract and 776 condos pending.  At the end of the fourth quarter last year we had 1,400 homes waiting to close.  With a total of 1,841 homes or condos that went under contract during the last 90 days, the overall figure shows an increase of approximately 25% over the previous quarter’s pending contract numbers.  This is a clear indication that there are more buyers seeking to capitalize on lower prices and record-setting low interest rates.
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As we enter into the second quarter of this year, it is interesting to note that inventory and sales are relatively flat and a third of closed sales from the previous quarter were a result of distressed situations.  The increased number of pending sales, however, shows a positive trend toward more deals closing as we progress forward.

For sellers, this is a time when it is critical to have your home priced right and in optimum condition.  Homes that fit this description are the ones that are selling quickly (often in the first 60-90 days) and are seeing multiple offers in many cases.  In terms of sales, this has been our best first quarter in over 4 years and we look forward to even better months ahead!

If you have further questions about where the property market is headed or where you fit in all this – contact us today!