Thanks for posting the question about Seabrook Island, Bob!
One of the major developments that is now occurring is the first phase of the Horizon Plan, a $31 million refurbishment project which includes a new community center with a 6000 square foot and lakeside pavilion, a new golf clubhouse and dining facilities, a new beach club, and a remodeled 22-acre equestrian center along with a renovated tennis complex. More information on this can be found in an article published in the Charleston Regional Business Journal http://www.charlestonbusiness.com/pub/13_26/news/11042-1.html
When asked a question on Trulia, I like to respond with specifics directly in the posting. This not only provides you with real estate details but other interested readers as well. As an Accredited Buyer Representative, I certainly would be happy to chat with you in more detail but I donâ€™t think that should be a prerequisite to getting the information you are seeking.
So, how have market values held up on Seabrook, you asked. I have just completed a year-end analysis comparing median price, days on the market (DOM), list price to sales price (LP/SP), and inventory of homes. Here is what I found.
On Seabrook Island the median sales price of a single family home for 2007 was $749,000, which represents a 3.3% reduction from 2006. However, the Seabrook market has shown much more significant declines, notably in 2002 which witnessed a 15% decrease compared to the median sales price of the year before. 2007 recorded the fewest sales of homes (n=39) during the past eight years and a two-thirds drop from 2006 (n=104). The good news is that since 2000, property values on Seabrook Island, in terms of median sales prices of single family homes sold since 2000, have increased 42.7%. Further, successful sellers are waiting much less time (118 days) than those who sold between 2000 and 2004 where the DOM average was double (240 days). In short, 2007 saw substantially fewer island homes sold for a slightly lower price at about the same length of time than during 2006.
For single family homes the LP/SP ratio in 2007 was 92.2% compared to 95.7% in 2006 and 96.1% the year before. Below 95% is considered a â€œsoft market.â€ These data, however, mask the magnitude of price drops in 2007 on Seabrook. The LP/SP ratio is based on the final listing priceâ€”many homes are reduced two or more times before a buyer is found. In order to more accurately assess the strength of the market it is important to compare the original listed price (OLP) compared to what is finally paid at closing. These data are not available through the MLS, but are compiled by Sears & Partners. During the last half of 2007, the LP/SP ratio for existing single family homes on Seabrook Island was 92.4%. But, comparing the sale price to the original list price yields a ratio of 88.9%. The average price reduction on a Seabrook home sold during the last six months was $132,745 (details for Seabrook and other areas can be found at http://www.searspartners.com
). Further, incentives such as the seller paying some or all of buyerâ€™s closing costs or giving cash credit to the buyer for repairs are not reflected in the OLP/SP ratio.
Inventory of homes is another major factor contributing to the Seabrook market. Six months inventory represents a balanced market. At the height of the sellerâ€™s market, in 2005, the average for all single family homes on Seabrook was 6.2 months, the next year it was 8.8 months, and last year it was 31.8 months.
Given these sets of data, this is a terrific time to purchase a home on Seabrook. Values will very likely increase as the local and national markets equalize toward the end of 2008 and into 2009. Further, the new facilities brought through the Horizon Plan coupled to the continued influx of boomer retirees into the Charleston area, and the relative value of Seabrook compared to other high-end areas (e.g., Kiawah, Wild Dunes, Daniel Island) will mean that your move to purchase a home will be a wise investment. More detailed information about Seabrook Island and other Charleston market areas can be found on my website. Good house hunting!
James Sears, PhD, ABR
Sears & Partners
CSA Real Estate Services