Palmetto Bluff Lawsuit + Zillow Forecasts- Market Mondays Bluffton
Dan is back with special guest Ken Vilcheck to talk everything Bluffton Market related in today's episode of Market Mondays- Bluffton. Zillow forecasts for home evaluations shift, Bluffton average sale prices are sky high, and the private equity firm that owns Palmetto Bluff is being accused of malpractice. What are the next steps?
Um, meadow bluff homeowners, little class action lawsuit going on. Zillow puts out new pricing forecast and the latest on the Bluffton market this week market Monday with my special guest and Vilcek. So I have Ken check with me here today, Ken, thanks for stopping by. Thank you for having me. So did you see the article, um, that, uh, about Cylo in their sales forecasts? You know, they're, they've updated their sales forecast now that we're through the first quarter and the increase in average selling price. They're bringing it down a little bit. I did see that. Yeah. Okay. What's your thoughts on that? I'm seeing what they're projecting and I think due to inflation a spike in interest rates, because I thought before the demand for real estate was due largely to how low interest rates were historically.I think as rates continue to spike, you start to take a level, a different level of each part of society that says I can't afford this anymore. You couple that with the inflationary pressure on home prices, And that's kind of a double whammy and specifically Bluffton looking at, uh, this week's numbers in Bluffton. And you think that still holds true, you know, inventory is down, you know, over 30% year over year. Um, we look at sales sales are down only 18%, but as you know, the properties, uh, that are going under contract that's down at 33%. So what's happening right now in terms of properties going under contract. Eventually result in a sale. That number is down by more than the inventory. Yes. And, but what I think is interesting that the article points out, uh, the sales so far this year, if you projected out, it will still be a record. It would, if you take out 20, 21, 20, 22 will still be a record. So I kind of get the sense that we're getting to a normalization. And, um, all the hysteria of multiple offers and things going way over ask is starting to moderate some. So, um, I'm not seeing as many people bid for a property and I'm not seeing the price going over, asked as much as, Certainly if the house is spectacular. Exactly. Correct. And, uh, and then updated house. We tell people all the time, what we're seeing is most everybody wants to move in ready. People don't want to buy the house and then have to fix it up before they moved here from the Northeast. Exactly. So, and you know, the cost to do so is. Prohibitive and in a lot of cases right now, it is. And the fact that they don't know who they're dealing with here. yeah, a couple of times, I mean, make no mistake about it bought then it's just on fire. The average selling price a year ago was 490,000. And right now at 672037% increase. So a lot higher than what Zillow is using for our areas in the average, uh, those numbers are just amazing. It's just showing. Popular the low country is right now. So the next thing I wanted to ask you about Ken, did you see the article? It was reported by a couple of neighbors about Palmetto bluff and there's a, it looks like a, let's say a mini class action lawsuit coming, coming into the picture I did. Um, and back to my. Prior career in investments. Um, I think what scares people, and there are enough professional financial people that live in Palmetto bluff. And typically when a private equity firm buys you it's for a pure investment for a short period of time, flip it, make a profit, give it to the next person to do the same. And that I think is their fear is. They're not there. They're looking purely the private equity firm that owns them. The current owner. We're just looking purely at the bottom line. How much can we make off of this potential potential, right? Exactly. Yeah. Uh, kind of an underlying thing. As I read, I read a couple of different articles about it, but the thing that seems to be underlying here, and I'm wondering if it's true, is there a smoking gun? You know what I want to read through it? There is some indication that they might've had some documentation, some internal documentation that supports some of the allegations, but do they really have a smoking gun? All of these allegations that this entire thing is a hoax. Yes. And that is why I think you will have a lawsuit. And because I think they're going to go into a discovery phase to see how much information they have. Yeah, it's, uh, it's going to be one to watch. It'll be interesting. And that's a behemoth. Yeah. You want to stick around and help me answer this week. Mailbag question. Sure. It's a tough one. So this week's mailbag question is with the new construction of the new proposed rigids. Is that going to have a positive impact or negative impact on hill and island real estate? What's your thoughts? I, I really think positive. Uh long-term and in fact have discussed this with several people. People who have been here multiple times. Understand the check-in time is a horror check out. Time is a, is second in line to being a whore that you just know that you're going to be backed up for two hours or three hours on 2 78. So I've told people, Hey, we're putting in a new bridge, three lanes on each side, they're going to move the lanes back to Moss the Moss Creek light. Hopefully. This will help the flow of traffic. And I think, uh, most people who come here have the idea that, Hey, I'm looking beyond this construction phase. Um, yeah, it's gotta be a little bit of a headache construction phase, but long-term this is what Hilton head island. Yeah. Yeah, no, I think during construction, I think it's going to be a night. Yes. Um, it's going to be terrible. You know, sometimes that's, what's required for progress. Um, I mean, do you think this bridges well overdue? Oh my gosh. I mean, like, I, I live in Moss Creek and so I travel over the bridge once in the morning and once in the afternoon. And I cannot think of a time here. Let's say month that that 12 minute trip has taken me less than 40 minutes. Yes. Including this every single day. The same. Yeah. So, um, you know, is it is a huge, you know, six lane or whatever. Sorry. Bridge or bridges. I mean, there's talk about, there's going to be multiple. They're going to replace the one that goes over McKay's Creek, uh, with probably two. Um, so there could be four bridges to, you know, on to pick the island and then to onto the. You know, it's going to be big. It's going to be massive and it's not, you know, there's no way to make a bridge that looks natural. So my big idea, and of course, you know, all it takes is money. Yes. We just gotta make a tunnel. It's gotta have a house. I wouldn't get rid of all the bridges. Anything more natural than that? No, they give us like a Hyperloop. Take us down to seat binds and back out. Absolutely. Kali along, keep calling on. You heard it here. Let's call you on bail. Hilton it out. There you go with a hyperlink, Ken. Thanks for coming in. Thanks for having me. I'm in, that's it for today. You need to come back next week for market Mondays. We're going to talk about Hilton head island and I'm going to have a very special guest, Ms. Margaret Crenshaw, one of our favorite people see you next week.