Sullivans Island Real Estate: Just What Is Going On?
Today I am looking at the Charleston MLS to see how the Sullivans Island real estate market did in 2014. First, here is a look at Closed Sales:
December Closed Sales was the same as November, each with 1 sale. The peak month for 2014 was June and April, each with 7 Closed Sales. The low point came in September with no sales.
Here is a look at 2014 compared to previous years for total sales:
Interesting to see that Closed Sales have been on the decline the last couple years. For much of Charleston Closed Sales have increased over that period. Of course, Sullivans Island hasn’t seen a dramatic drop, but Closed Sales declined nonetheless.
So, how has that affected home values? Here is a look at the Average Sales Price for Sullivans Island real estate in 2014:
The Average Sales Price on Sullivans Island dipped below the $1,000,000 mark in December. November’s Average Sales Price was $1,150,000 and in December it was $844,000.
The only other time the Average Sales Price was below $1,000,000 in 2014 was October at $952,842. The peak for 2014 came in March at $1,900,200.
Here is a look at the Average Sales Price for 2014 compared to previous years:
After increasing by 9.3% in 2013, the Average Sales Price declined in 2014 by 17.1%.
Here is a look at the Average Days On The Market (DOM):
This number took a sharp drop in December, from November’s 273 DOM to 88 DOM. August was the highest month in 2014 for DOM at 305. The lowest was February at 0 DOM.
Here is a look at 2014 vs. previous years for DOM:
As you can see, that number came down in 2014. Is this a good sign for the Sullivans Island real estate market? The next stat will let us know, and that is the Months Supply Of Inventory:
This number also dropped in December, from 11.7 in November to 9.1 in December. Here is a look at that number for the previous 3 years:
After declining in 2013, that number is back up for 2014. Interesting that in 2013 the Average Months Supply was 9.9 Months, and now that number is back to just below that level in December. Will that trend continue?
Let’s take a quick look at some other numbers to see.
There are 32 current Sullivans Island homes for sale. 9 homes are currently under contract. The homes under contract average 215 DOM, so it looks like that number will be higher.
The Average List Price for these homes is $1,639,511 so the Average Sales Price will likely increase. It is important to note that this is the Average List Price for these homes and not the price that they are under contract for. We will not know that number until after they close.
It will be worth keeping an eye on these numbers heading into 2015 to see where the trend goes. Sullivans Island in like the other island communities in the Charleston area–the sample sizes are small, and Sullivans Island is a niche market.
Because of that I don’t think you can say the market is doing poorly. When you sell no more than 7 homes in a month, it is easy for one or two homes to skew the numbers.
With the high Average DOM, chances are that some homes were chasing the market. Perhaps the increased values for 2013, along with most other areas in Charleston doing well in 2014, sellers mistakenly overpriced their homes. I think that could be the case, as shown in this graph:
This graph shows the Average Percentage of List Price–this shows the difference between the List Price and the actual Sold Price.
As you can see, throughout much of 2014 that number was way off. Usually, you want to see that number about 95% or higher. December stopped the downward trend, but will that continue?
I always preach that it is important for both buyers and sellers to know the market numbers. But it is especially important if you are looking to sell. If you overprice your listing, you end up chasing the market.
From the graphs above, it looks like many sellers mistakenly believed the Average Sales Price would continue to rise in 2014 and priced their home according to where they thought the market was heading–they ignored the actual numbers and trends.
As a result, their homes sat 0n the market longer. And, by the List-Sale price ratio, you can see that many had to drop their price and/or accept much less to get sold.
This can be very frustrating as a seller–not selling for nearly a year, and then having to sell for much less than you thought. For many sellers, they probably think they lost money when they finally sold.
However, they would be wrong–that money was never there to begin with, it simply existed in their imaginations as false beliefs.
If you are thinking of selling on Sullivans Island, it is important that you know the most recent numbers as well as the trends. You need an agent that understands them as well.
Bee sure to check out my sellers page for more information and see why I am the right agent to get your home sold, not just listed.
If you are thinking of buying Sullivans Island homes for sale, then now is a good time. It is definitely a buyers market, and it is possible to still get a good deal.
The Average Days On The Market for Sullivans Island homes for sale right now is 205. Likely, some of these sellers are very anxious to get sold.
The Average List-to-Sale Ratio is climbing back up, so now is a very good time to take advantage before all the numbers start trending back upwards.
By knowing the numbers on Sullivans Island, buyers can have more leverage in negotiations to get a better deal.
If you are looking for Sullivans Island real estate to buy, then check out my Sullivans Island MLS page.
You can search for Sullivans Island homes for sale and also sign up for a free list of homes that include addresses, prices, pictures, complete details and a Google map link. This list is updated with all new listings when they hit the market.
If you want to keep up with the latest stats for Sullivans Island, then check out my Sullivans Island Real Estate stats page.