Real Estate Market Summary of 2016 on Folly Beach

2016 was a red hot year for sales as 166 properties changed hands, up 11% from the year before. This high number makes me remember back to the 2008-2010 time frame when Folly Beach was lucky to have 100 properties sell per year. Things have been growing steady since that time and year after year there have been increasing sales. The lower priced properties used to be in the $400,000's and now there is very little to choose from under $600,000. The heavy demand in 2016 drove inventory to extremely low levels, as buyers gobbled up what was for sale and sellers have not replaced the selection with new properties. I guess everyone is staying on Folly Beach!

The average price of a single-family home on Folly Beach rose 8% in 2016 to over $700,000. This is the highest average I have seen since the economic crash of 2008. Also worth noting in 2016, sellers received a higher percentage of their list price. There is much more demand than supply in the market at the moment, so I see prices continuing to rise, and sellers getting more of their asking price. While sellers are happy, I am speaking to many frustrated buyers who can't find what they are looking for.

Folly Beach condominiums are incredibly hot right now. In 2016 the average price of a condominium jumped 14% to over $400,000. Entry level condominiums like Mariners Cay and Turn of River sold the most in 2016, and even though prices rose, buyers still flocked to purchase them. While you could get one for under $300,000 in the past, they are now selling in the $350,000 range and more for premium locations. Oceanview and Oceanfront condominiums also rose with the Charleston Oceanfront Villas leading the way into the $750,000 range for an average size and location. There were several purchases in the $550,000 range oceanfront as well. Inventory is extremely tight in the condo market on Folly Beach, and a few buildings have even encountered construction deficiencies, which is why you need an experienced and knowledgeable agent by your side.

The number of vacant lots sold on Folly Beach doubled in 2016 from the year before and the average price was up 16%. As the inventory of existing homes plummeted, more buyers chose to purchase a lot or a home to tear down and build their vision of the perfect Folly Beach home. Oceanfront lots were selling in the $800,000's, second row and marsh view lots selling near $500,000 and interior island lots selling near $300,000. There is so much that goes into buying a lot and building that you need to make sure you are working with an expert on your new construction plan. Wetlands, waste disposal systems, zoning,and permits are just some of the hurdles needed to be cleared to build a home on Folly Beach.