Once just a vacation, now a first home
While Hilton Head and Bluffton are permanent homes to some folks, others come to the lowcountry for vacations. Many rent but a lot are buying. In fact, vacation home sales are outperforming total existing-home sales. Sales of homes intended for vacation use rose to 109,100 in the past three months of July-September, a 44% gain from the level of 75,600 sales during the same period last year, according to NAR estimates based on information gathered from the monthly REATORS® Confidence Index Survey1 and NAR’s existing-home sales estimates. In comparison, total existing-home sales during July-September rose 13% year-over-year (1.72 million in July-Sept 2020 vs. 1.52 million in July-Sept 2019).
Low mortgage rates + COVID
What’s contributing to this increase? The pandemic and low mortgage rates have increased the desirability and affordability of owning a vacation home. Many buyers want a vacation home as a getaway from crowded and COVID rich cities. The ability to work from home also means buyers who can work from home. And this means they can spend more time at (and maybe even move to) their vacation home. Historically low mortgage rates have also made a home purchase more affordable. Rising prices in past years have yielded larger home equity gains that can be tapped (through say a home equity loan) to use for a down payment.
The data says…
If you have a lowcountry home and are thinking of selling, recent market report numbers may help you know what to expect. In Hilton Head in March, detached homes were on the market for an average 98 days. Bluffton homes saw an average of 106 days on the market. As April moves into May, traditionally the busiest season for real estate, you can expect to see even shorter time on the market. The lesson: if you’re in the market to sell, now is the time. And get the boxes ready and the movers scheduled. The data shows selling won’t take too long!
