Luxury real estate is a niche market and caters to a limited number of prospective buyers.
According to a survey done by Realtor.com in April 2014, 13 percent of respondents stated that they are looking to purchase a high-end luxury home; and 26 percent said they may consider a luxury home.
Features most desirable to luxury homebuyers include a view, with waterfront as the most preferred; a chef’s kitchen; outdoor living area with kitchen, fire pit and bar; and a lavish pool.
Locally, luxury is defined at a price point starting at approximately $1.5 million.
However, luxury could mean different things to different people. Twenty-five single family homes sold for $1.5 million or more in the first six months of 2014 through Hilton Head Multiple Listing Service. Inventory in this price range remains high and there is upwards of 22 months of supply.
Optimistically, the greater Hilton Head area couldn’t be better posed for those searching for luxury properties.
Resale value is a very important indicator to luxury homeowners, and with the recent capital improvements and redevelopment in the area, it increases the value of real estate and the appeal to buyers.
The unique landscape and design of the community emulates the quality of life desired by luxury homeowners. With the various lifestyle choices within the Lowcountry there is luxury living for every heart’s desire.
REALTORS RELEASE MARKET NUMBERS
South Carolina Realtors recently released its statewide housing market reports. The reports indicate that consumers are now finding more listings in their search results than they have in years, as higher prices have motivated more sellers to list their homes.
New listings in the state of South Carolina increased 1.2 percent to 8,445. Pending sales were up 11.6 percent to 5,416 and inventory levels fell 3.2 percent to 47,054 units.
Prices continued to gain traction as the median sales price increased 3.6 percent to $164,699. Days on the market was down 4.3 percent to 110 days. Sellers were encouraged as months supply of inventory was down 7.6 percent to 8.5 months.
The departure of investors from the scene should benefit first-time homebuyers, but student debt and sluggish wage growth have slowed the transition. The economy is growing, albeit slowly. Contrary to the forecasts of most economists, inflation remains tame, partly enabling the Federal Reserve to keep rates low for longer.
Jean Beck is the executive vice president of the Hilton Head Island Association of Realtors
