Are home buyers giving up?
Time for market Mondays this week, we're going to talk about Bluffton it's heritage week on Hilton head island, and Ellen young stops by to talk to me about whether or not this is a real estate bubble, the Bluffton real estate market. The big news this week is properties going under contract have dropped again down to 37% decline from where we were last year in properties, under contract. That's a big number. And those of you that have been following along know that I have just been in disbelief at how. The average selling price in Bluffton is to the average selling price on Hilton head island, average price on Hilton head island. Right now 784,000 Bluffton 676,000. I've never seen that value dot high for Bluffton. Well, my team has brought it to my attention that the, the factor that's influencing that is Palmetto bluff, Palmetto bluff has had 70 sales so far this year, 70 sales in the first. Of this year, if you take those 70 sales out, the average selling price in Bluffton goes from 676,000 to 544,000, a 24% difference in the average selling price or reduction in the average selling price in Bluffton. If you own property in Bluffton let's thank Palmetto bluff. For boosting our average selling price. So at this point I would like to introduce my guest Ellen young, good friend. Great colleague tell us what's happening with the real estate market. Is it slowed down? Uh, the real estate market is still really hot. It's slowed down a little bit, um, in that. There might not be 20 offers per property. Now maybe there's five to 10. We running out of buyers. No, we're not running out of buyers. Some of them are holding off some buyers I've got are like waiting to see what the market does for a bubble. Maybe. Yeah. There's some people out there. We had a, we had a comment on one of our. Uh, they talk about prices going down. I want to ask you about that before we go on, but is there a bubble coming? I don't believe so to go. So, so then why we've not run out of buyers. There's still plenty of buyers, right? Less houses to buy less houses to buy the inventory still remains really low. The demand still remains high. The interest rates, even though the. Slightly, um, they're still relatively low. I got into this business 24 years ago and 8% was considered a great interest rate. So it's still very low or buyers getting discouraged some, but I think what would you tell. If they were fortunate enough to work with you, I would just say, I truly believe this too. I would just say that the right property will come along for you. And that even though you might have made three or four offers and not. Got an outbid. Uh, they're still the right property for you. I always feel like, and I truly believe this. That if something, if a property doesn't work out, it wasn't meant to be for you. Do you have a trick? Is there a trick and Allen opened up the bag of, well, the there's a trick. I wish I wish I had a magic wand or a magic potion. It's not like that. It's just that, um, If you don't get the property that you think is really right for you, maybe there's something out there better before you go. I want to ask you a question and this actually comes from a comment on one of our posts. I believe his name was Jason said that interest rates going up, we're going to cause a five to $600. Maybe even more increase in people's payments and that's going to cause prices to go down. Do you think that's the case now? Why the low inventory. We still have extremely low inventory and I'm even making calls. And I know a couple other people on our team are making calls to try to get more listings and most people don't want to sell. So with the low inventory, high demand, um, people wanting to get out of certain areas of the country, you know, we're still a prime. Primary stole a lot of people not getting financing to right. Like a lot of cash buyers. Yeah. Yeah. So Jason, what I would say is there's a lot of cash buyers out there and, and those certainly influence the market. There are markets where I think prices could come down a little bit. Those are the markets that have been feeding us, buyers, people leaving places like California and the. To come south. They don't have to go to the office anymore. They can work from home. Those markets. Yeah. Maybe here I'd make a wager with it. Prices are not going to go down. Nope. Thanks Allen. Thanks for stopping it. When you come back, I'll come back. Now. This week is. The heritage, the time that Hilton head island shines on the national stage of the heritage is a really important and tournament to South Carolina. They have donated 47 and a half million dollars to South Carolina charities since 1986. We wish Mr. Stewart Cink, the best of luck. He's a three time winner and, uh, hopefully he goes out there and repeat. And, uh, this year it's sold out folks. 120,000 tickets sold out and last with regard to heritage is we want to wish Bryce and Nima, local boy, local Bluffton guy. Good luck in the tournament this year. Let's bring it home for blossom. If you'd like all the numbers for Bluffton, exact numbers year to date for the Bluffton real estate market. The link is below. If you have any questions from this week's show, please drop them in the mailbag and we will answer them next week. I want to wish all of you, a happy heritage. Get out there, enjoy the tournament. Enjoy this spectacular weather and we'll see you next week.