Grand Strand Real Estate Market Update – April 2013 vs. April 2012

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We’re seeing a fairly steady yet slow increase in average sale price and sales while the number of days remains close year over year and inventory levels also only slightly declined. In terms of distressed sales, both in the single-family and condo categories, though we are seeing some improvement there is still a fair amount of inventory on hand that we need to clear through before we can see a strong comeback.

All in all, our numbers and outlook is improving though it may be taking longer than as reported in some other pockets of the nation during this very promising housing recovery period. Here’s a look at our numbers as they relate to the first quarter of 2013 compared to the same period in 2012.

Single-Family Home Sales Up, Avg. Price Remains Fairly Flat, Homes Selling Slightly Faster

Right now, we are reporting a fairly significant increase year over year in the number of single-family homes sold through the end of first quarter. At 1,144 homes sold this year versus 1,007 sold in 2012 we saw a 12% jump in single-family home sales.

In terms of prices, there are two ways to examine price trends; first by looking at the average sales price and second, considering the median sales price. Looking at the latter gives us a better indicator of where the growth in our marketplace lies. As of April 1, 2013 our average sale price was $205,000 compared to $203,000 the previous year, marking a nearly flat 1% positive change. The median sales price is $160,000 for the first quarter of this year and last, meaning that half the homes were sold above that price and the other half sold fell below the $160,000 mark.

The number of days on market fell only slightly from 194 last year in the first quarter to 182 during the same time in 2013, pointing to a very slight positive change on market for single-family homes.

Fewer Homes On-Hand, Distressed Properties Still Dominate Nearly One Third of Inventory

Looking at inventory levels in the Grand Strand real estate market, we reported a slight decrease in the number of homes available from 4,288 as of the first of April in 2012 versus 4,034 homes on hand at the same time this year, indicating a 6% decline and a 10-month supply of inventory.

Distressed sales have slowly begun to clear away though there are a significant number of homes to be sold yet with 28% of our first quarter inventory this year being distressed properties. This compares very closely to last year’s 28% of closings in the distressed property category.

Condominium Sales On the Rise, Average Price Up Slightly, Condos Selling Faster
The number of condo units sold last year through the first quarter was 845 as compared to the 8.5% jump indicated by 924 units sold this year. Though not as much of an increase, we saw a positive change by 4.5% in the average sale price of condos with last year’s average at $126,700 to the first quarter of 2013 average sale price at $132,000.  Median sales price also climbed a modest 5% year over year, going from $100,000 to $105,000 respectively.

The total days on market changed a fair amount this year going from 186 to 127 for the first three months of the year.

Inventory Steadily Clearing, Distressed Sales Continue to Dominate Condo Market

The number of available condos went from 3,963 in 2012 to 3,383 by the end of the first quarter this year, representing a 15% decline in condo inventory. The hardest hit segment in our marketplace during the market crash and throughout our recovery has been condos, highlighted in the percentage of distressed sale closings that represent our market. At 25% of closings in 2013 and 35% of closings the previous year, distressed sales still hold a significant impact on our market.

Land Sales Up a Small Amount, Prices and Days On Market Remain Fairly Flat

In terms of land sales, we have seen a huge surge in the number of building permits obtained during the past few years. Looking at the first quarter of 2013 for the number of lots sold, however, we were at 265 as opposed to 271 the year prior. The average sales price saw a very modest increase from $78,000 last year to $83,000 in 2013 through the first quarter. Distressed sales were down from 42% the year before to 35% by April 1 of this year. Time on market has remained flat with just a two-day change year over year.
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These figures indicate slight improvement in some areas and a stronger positive trend in others though the overall consensus is that we have a while to go before we can expect to see a significant change. Our inventory levels are still fairly high and the number of distressed properties continues to dominate a good portion of our market but we’re moving in the right direction. We expect to see a slow yet steady improvement over the next 18 to 24 months.

For a customized look at your property as it relates to today’s marketplace or if you’d like our assistance in finding the perfect home here in the Grand Strand, contact us today!

greg@gregsisson.com
843-251-2693