HOME PRICES, NEW LISTINGS, PENDING SALES INCREASE ACROSS THE AREA, by Jean Beck, Executive Vice President of the Hilton Head Area Association of Realtors

According to the U.S. Census, home-ownershipis at 63.4 percent for the second quarter of 2015, down 1.3 percent from the second quarter of 2014. This is the lowest rate of home-ownershipsince 1967.

To put that in greater context, home-ownership peaked at 69.2 percent in 2004, and the 50-year average is 65.3 percent. Although the data may indicate otherwise, mortgage applications have kept area Realtors busy this summer.

While home-ownershiplevels are low, the National Association of Realtors is reporting the median sales price of a home is at an all-time high right now because of a number of factors. Lawrence Yun, chief economist for the National Association of Realtors, said that can be viewed as both good and not-so-good news.

On one hand, current homeowners looking to sell their home and upgrade to something bigger or better can now sell their home for more, gaining equity for the down payment on their next home. On the other hand, rising home prices make it more difficult for first-time, younger buyers to enter the market, as they don’t have equity from a previous home and are struggling to save as it is. As the home-ownershiprate is currently at a 25-year low, Yun said this could contribute to a more unequal wealth distribution.

Locally, July new listings were up 5.5 percent to 461. Pending sales increased 53 percent to 485. Inventory shrank 16.5 percent to 2,185 units. Prices moved higher as median sales price was up 12.2 percent to $275,000.

For our area, the national prices on the rise will allow baby boomers to consider relocation. As we wind down from the summer, real estate typically picks back up in our local market. The thought of another long, cold winter up north brings fall buyers looking to make the Lowcountry home.

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Hilton Head, SC 29928
Phone: 843-671-5551
Email: elizabeth@lighthouserealtyhhi.com

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