2013 Folly Beach Real Estate Market Report
Is it a buyers market or a sellers market?
In 2013, prices held steady and inventory dropped dramatically. Low inventory creates a sellers market, however no rise in prices show that buyers were not willing to pay more than they were a year ago. It appears like we are in a stalemate. I am seeing multiple offers on well priced properties within days of coming on the market, showing that demand is there, but only at the right price. Some inventory has been sitting on the market untouched for years.
108 properties sold on Folly Beach in 2013, which is a good number and continues the steady growth of the real estate market. Prices inched higher and inventory is favoring the seller, with little quality homes to choose from in the lower price range, and quality, attractive construction starting around the $600,000 price range. Demand returned for oceanfront and luxury properties, which is where you can find your best buys on the beach. The low end of the price range has been picked over, but oceanfront homes still have some opportunities. There are quality homes under $1 million and another in the $800’s that may not around for very long. The east side of the island past the washout saw no sales as the erosion scared buyers away, this should turn around as renourishment begins.
We see in the chart below that total number of sales were down slightly from 2012, however historically 100 sales is a good number for Folly Beach. Both median and average prices stayed the same. My theory is that the days of double digit annual appreciation are over and we will return to normalized slow growth. In order to sell you home you must have it priced correctly, which is why you need the help of a market expert.
Condominium sales remained the same in 2013, showing demand, but not raising prices. Mariners Cay was the complex with the most sales in 2013 with 11, ranging from $213,000-$305,000. The townhomes on the river side of the island, including Waters Edge and Turtle Bay, had 8 sales in 2013 ranging from $420,000-$485,000. The Charleston Oceanfront Villas had 5 sales in 2013 ranging from $600,000-$700,000.
Even though there were slightly less home sales in 2013, prices were higher than 2012. I attribute this to the lower inventory, and here is where the sellers market is the strongest. A few years ago there were plenty of bank owned homes and distress sales pushing prices downward, but that has gone away and there are slim pickings at the lower price ranges. There are very few quality homes under $500,000, which is the new baseline for homes prices on Folly Beach.
Take a look at the chart of properties sold by price range. The majority of sales lie between $200-400,000 as in past years. This is an incredible value for a beach community so close to Charleston and shows why so many people choose Folly Beach. There was an increase in the $500-600,000 price range from 2012 showing that people are buying quality construction homes in good locations. You will see that there is strong sales in the higher price range. In 2011, 8 properties sold above $700,000. That number rose to 20 in 2012 and continued strong with 21 in 2013. Overall there is a widening of the chart and it fills out in the higher price ranges.