The 2019 Annual Market Report for Hilton Head MLS is out! The 2019 housing market was driven by the strength of the economy across most of the country. The Stock Market reached all times highs, unemployment was at a 50 year low, wages increased which created new buyers. Lower mortgage rates contributed to increased affordability. Buyer activity was strong in 2019, which impacted inventory levels.
Hilton Head Market is strong with with an increase of 5.6% in closed sales and 8.7% increased in pending sales. Inventory or the number of homes for sale, decreased by 12%. Buyer demand and the shortage of available listings contributed to an increase of 3.4% to the overall median sales price of $325,000.
The top selling communities in the Hilton Head MLS :
- Palmetto Bluff
- Hampton County
- Beaufort Co _south of Broad River
- Rose Hill
- Hilton Head Lakes.
For a complete look at the 2019 Annual Market Report for Hilton Head MLS click here.
What it all means:
The success of the Hilton Head real estate market, like any other market, is determined by supply and demand. This means we need to look at how many potential purchasers are in the market versus the number of houses that are available to buy.
It’s quite evident there are two big stories impacting this year’s residential real estate market and will certainly impact the 2020 real estate market as well they are:
1. Buyer demand is already extremely strong
2. Housing supply is at a historically low level
According to NAR, the unsold inventory available today “sits at a 3.0-month supply at the current sales pace,” which is down from a 3.7-month supply in November. The current inventory is half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory.
“Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.”