Market Summary and Opinion
The local housing market is still red hot with no end in sight.
The number of listings hitting the market today is at an all-time high. SELLERS know that the market is hot and that prices have appreciated quickly over the past year. Well priced listings even in the higher price ranges are going under contract in a matter of days or weeks. In fact, the average number of days on the market on the grand strand is currently about 60 days. This means that a property closes about 60 days after going live as a new listing. Since it takes about 45 days for a typical property to close after going under contract, that only leaves about 15 days that a property is listed and available for purchase. So, sellers are enjoying a fast-moving market where properties are selling with few or no contingencies and at a very fast pace.
For BUYERS the picture is much different when you look at the local market from their perspective. A current search for homes available to purchase in the 29585 (Pawleys Island) zip code, for example, shows 49 active listings for resale homes. 12 of these listings are priced under $500,000. 15 homes are priced between $500,000 and $999,000. 13 homes are priced between $1M and $2M.9 homes are priced above $2M. So, if you are a buyer, the search for a home can be difficult. Buyers today need to be ready to move very quickly when they see the right home hit the market. But what a great time to buy given the low interest rates and rising prices. Buyers are feeling the urgency to buy now!
Interest rates are still at rock bottom. 30-year fixed rates are currently hovering around 2.85% on both conforming and jumbo loans. Low rates continue to be a huge tailwind for the market.
Lot sales are off from last year. The inventory of lots for sale is down sharply and prices are up. Combine this reality with extremely high construction costs and the market’s appetite for residential home sites is predictably lower even with the low supply of homes for sale on the market.
As always, call me or one of our top-notch agents at The Litchfield Company to discuss your real estate needs.