Inventory is the key word when breaking down the state of the Folly Beach real estate market.
Looking back to 2017, we saw very low levels of available homes for sale, causing a dip in total sales in 2018. Then inventory improved in 2018 and early 2019 bringing us back to normal. After lower sales in 2018, 2019 rebounded with a terrific amount of real estate sales on Folly Beach, proving that demand still exists on Folly Beach. I described the market as balanced in recent years and I still think that is true, however inventory began dwindling again towards the end of 2019, making it harder for buyers to find the properties they are looking for, and giving a leg up for sellers who have a quality product and are priced right. The inventory that came on the market in late 2018 and in 2019 was in the lower price points as homes in the $500,000’s led the way as the highest number of sales in any one price section. There were far many less homes sold over $1 million in 2019, resulting in a much lower average price for single family homes, as you will see in the charts below. Availbility affected this greatly as there are currently very little to no available homes oceanfront and in the highest price points. If you’re a seller, demand is there and inventory is low, so allow an expert to help you sell it for the most you can get. If you’re a buyer, low inventory means you need someone looking out for you so when that hot property comes on the market, you can be ready to pounce. Make sure you are working with an expert like me to achieve your goals on Folly Beach.
Folly Beach Total Sales
In 2019, total property sales on Folly Beach ticked up slightly continuing a healthy, balanced market, which is good for both buyers and sellers. Demand exists for quality homes, but sellers must be priced right or they will sit on the market, which is why it is critical to choose an expert when buying or selling on Folly Beach.
Folly Beach Home Sales
Sales of single-family homes on Folly Beach fell in 2019 compared to the year before, attributed to the lack of inventory mentioned above. But take a look at the drop in average sales price to nearly $800,000 and the increase in days it took to sell, meaning lower priced properties were being gobbled up and buyers were picky in 2019. In a smaller sample size such as Folly, these averages can be affected greatly, and should not be discouraging. Let me value the property for you to make the best decision you can. An oceanfront home sold in 2019 for over $2 million on Folly, however there were also 6 oceanfront homes sold between $1,000,000-$1,300,000. The average price/sq ft for homes on Folly Beach in 2019 was $446.
Folly Beach Condominium Sales
Condominiums on Folly Beach were popular in 2019. They improved across the board with gains in average price, total number of sales, and a lowering of the average days on market. Prices eased higher as they became more attractive to buyers in the $400,000’s with no inventory of homes to buy. Condominiums across the Folly River bridge in Mariners Cay and Marsh Winds could be bought between $300,000-$400,000, but the lowest priced condominium on the island sold for $525,000. A few oceanfront condominiums sold starting at $670,000 and there were 6 Charleston Oceanfront Villa sales last year with the highest reaching $940,000. The unique nature of each condomoinium complex is why you need to work with an expert who knows the value and history of each of the buildings.
Folly Beach Lot Sales
Total number of lot sales remained steady, but average price went up, mostly as a function of the type of inventory selling. In 2018 half the lots sold were off the island, and in 2019 they were all on Folly Island proper. 8 out of 12 lots were sold in the $300,000’s and all of those were interior lots. One of the bigger sales was a parcel that consisted of 3 lots for $945,000 again placing interior lot value in the $300,000’s. A smaller oceanfront lot on the East side sold for $860,000 and a tear down home purchased for lot value on the West side sold for $1,000,000. There are many details that go into determining the value of raw land, so it is important to enlist the help of an agent who knows what buyers are looking for.
2019 Folly Beach Sales by the numbers
As you can see in the charts below, homes in the $500,000’s were popular among Folly Beach buyers last year. In 2017 and 2018 you can see a shift in total sales towards higher price points, but that was thrown out the window in 2019. Before jumping to any conclusions, remember that inventory is the theme of this summary. Properties for sale were in short supply in the higher price points, and at the end of 2019 there were only two oceanfront homes for sale, the lowest total I have seen in my career. Much of the new inventory was in the $500,000’s and buyers gobbled them up as easy pickings, low hanging fruit. As more homes become available I expect that to even back out and prices to continue to rise. If you feel it is tough to gauge what your home is worth, or want an opinion on the value of the property you are interested in purchasing, please contact me and let me help you avoid costly mistakes. I love to help people build wealth in real estate, especially on Folly Beach. Thanks for reading!