REAL ESTATE SALES RESULTS REVIEW 2017 For Stone Harbor & Avalon

With the extremely POSITIVE ECONOMIC OUTLOOK that developed coming into 2017 and continuing into 2018, there was much more sale activity in the 1st quarter of 2017, than in previous years and it continued throughout the entire year. One of the most noticeable increases in sales was in the HIGH END sale market. The $3,000,000 and up market had the most sales than at any time in Stone Harbor and Avalon sale history, with 22 properties in Avalon and 16 in Stone Harbor selling for $3,000,000 and up. Overall, on Seven Mile Beach, there were 414 properties SOLD in 2017 compared to 387 SOLD in 2016. 414 SOLD properties is the highest total since 437 properties SOLD in 2005.

The only drawback to the Stone Harbor/Avalon sale market in 2017 was the fact that sale listing inventory was the lowest since 2005.

NEW CONSTRUCTION SALES continue to have a very positive impact on property values. With the abundance of NEW CONSTRUCTION on the island, land values continue to increase which is evident in “tear down” property values rising.

SEA’S YOUR OPPORTUNITY!!!! Stone Harbor and Avalon property owners - if you are considering selling in 2018, this is the best possible time to sell your property with tremendous demand from buyers especially with the amazing increases in the Stock Market and continually low mortgage rates. NOW IS THE TIME!!!!

SHORTAGE OF SALE LISTINGS: The shortage of sale listing inventory is the only thing that is slowing the sale market to any degree. This is especially true in Stone Harbor where 8 fewer properties SOLD in 2017. This is the reverse of what happened in 2016 when the number of Stone Harbor properties SOLD increased and Avalon properties SOLD decreased.

On a barrier island, like Seven Mile Beach, Average Sale Price is not always the best indicator of whether there is appreciation or depreciation in property values. Average Sale Price is greatly impacted by the number of high end and low end properties selling. The 19.1% increase in single family average sale price in Stone Harbor compared to the 6.8% increase in Avalon has a lot to do with the fact that there was a much higher percentage of homes that SOLD above $3,000,000 in Stone Harbor vs. Avalon in 2017. Avalon has 5,669 real estate units compared to 3,395 in Stone Harbor. Determining the value of property is much more specific than looking at Average and Median price of properties on a barrier island where there is such disparity in value from block to block going east to west, BEACH to BAY.

The two categories to focus on that impact property values in Stone Harbor and Avalon are SINGLE FAMILY HOMES & CONDOMINIUMS where 90% (Stone Harbor) and 96% (Avalon) of SOLD properties came from these two categories in 2017, of the five real estate categories of sales as seen on pages 4 & 5.

SINGLE FAMILY HOMES: In 2017 both the Average Sale Price and the Median Price increased over 2016 in both Avalon and Stone Harbor. In Stone Harbor the number of single family homes SOLD stayed the same as 2016 with 83 home selling, whereas in Avalon it increased by 13.

CONDOMINIUMS: In Stone Harbor both the Average Sale Price and Median Price decreased in 2017, whereas in Avalon both the Average Sale Price and Median Price increased slightly. In Stone Harbor the number of condominiums SOLD decreased by 6 from 2016, whereas in Avalon the number of condominium units SOLD increased by 22. Avalon’s increase in average sale price had mostly to do with NEW construction condo/townhouses. Stone Harbor’s drop in average sale price has to do with the lack of new construction condo/townhouses and the very small amount of inventory in this category.

AVERAGE DAYS ON SALE MARKET: The average DAYS ON MARKET (DOM) for all properties SOLDfrom 2016 to 2017 decreased in Avalon from 215 to 193. In Stone Harbor the number increased from 216 to 230 DOM. NOTE: If a sale listing expires or is withdrawn from the market and relisted it starts over with zero days on market and this has been happening in the range of 25% of the time, making the true number of DAYS ON SALE MARKET higher than what is listed by the MLS (Multiple Listing Service). The true average time it takes to sell a property in this vacation home market is closer to one year. In reviewing the Average Days on Sale Market you will see that even in the very best of times (See charts below) the Average Days on Sale Market was in the range of 150 to 190 days. This is much different than in primary home residential markets where in the very best times the Average Days on Sale Market could be less than thirty days. In a primary home market there is a greater sense of urgency due to buyers and sellers relocating for work, school districts, etc. compared to a vacation home market. Call Hugh @ 609-602-0300 to discuss the Stone Harbor and Avalon sale market and the value of your property. Email: Hugh@HughMerkle.com 

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