Rising interest rates might affect Bluffton the most-- Market Mondays Bluffton
With interest rates rising half a point, the largest increment increase since 2000, will Bluffton be affected? Plus, we talk about the Bluffton real estate market and answer the question, "Who will get more inventory first; Bluffton or Hilton Head?" on today's Market Mondays. Thanks to special guest host Bland Kiser and Gerry Prud'homme for filling in for Dan!
We're starting to see more homes come on. The market in Bluffton interest rates have gone up a half of a percentage point and we have special guests. Gerry Prud'homme all that more stay tuned. All right, well it's Monday, May 9th. I'm Bland Kiser Prud'homme team at Carolina Realty group. I have a special guest with me, the godfather, Gerry Prud'homme founder of Carolina Realty group.Thanks for joining us. So glad to have you here. Gerry, I know you've been following the Bluffton market and the Hilton head market, but today's show is mostly about Bluffton, right? What are you seeing in Bluffton as of May 9th? Yeah, I mean, we're definitely seeing an increase in. That started to happen the beginning of the year and Bluffton Hilton head it's actually just started in the last two months.Just finished doing the marker reports for Hilton head and inventory is about, up about three times over where it was a year stock plus, and currently. You know, has 31 new listings that came on the market this week. And that compares to a 24 last week and it's, and it's up for the year and also prices are up substantially.It's amazing prices go up. We do, we do, we do. And and I guess one of the things we're going to talk about our interest rates and how that'll impact the market. And I would, I would guess that. It would be insignificant on Hilton head because of the price point and the fact that most of the buyers are paying cash or have the ability to pay cash.But 30% of the real estate market nationally is made up of first time home buyers. And the majority of those first time home buyers in our local market will be buying in blessed. So if there is a segment of the market, Is impacted by rising interest rates. I think that's where we would see it first and then left.And when that happens, you know, it kind of creates a chain event where, you know, if people aren't buying first time properties and selling those properties and moving up, then it kind of slows down the process of turnover, which leads from 1.1 price point. Right. I was just speaking with a friend of mine last week, and he's say 27, 28 years old, ready to buy his first home.Right. But because of interest rates has been a little bit priced out of the market together. I mean, I think we're going to see that in some of the markets. I think also we're looking at a situation where we know the fed needs to raise rates more than what they've done already. There was a half.Increase, which I guess is the largest increase over 20 years. There are some economists that say in order to stem inflation, where it's at right now, it would take a rate of close to 8%. It's going to be interesting to see what, what takes place. Wow. Well, I'm just curious. When you look back, historically speaking, I hear stories from early eighties and so forth where interest rates were 18, 17, 19%.So I'm just curious in your mind, how has that so much different than today, your 2022? I mean, it's a good question. Bland. You know, I've been in the real estate business for 35 years and I have never seen a market like we're seeing today. And quite honestly, I don't think a market like this has ever existed with.You know, the fed tries to control employment, you know, keeping it, keeping employment, unemployment as low as 10, they try to control prices, keeping prices stable, and then they control long-term interest rates, but we know the prices aren't stable, so they have to work on controlling those prices. But if we look at the overall overall health of the market here locally.It's very strong buyers that we're seeing mostly people who are again, paying cash a could pay cats that not highly leveraged, you know, the, the crazy, you know, liar loans that we had. Back when the market crashed in 2008, 2009, those don't exist anymore. So I think we have a much different buyer. We haven't really seen speculators in the market.People who are purchasing property here, purchasing profit, because they want to live. And, you know, a lot of that happened happened because of COVID and that trend continues. So there is still pent up demand out there in the market, lack of inventory. So I think the market is going to continue to, to do, to do pretty well.And I think again, if anything happens, it's going to be that low price tier where we see the slogan. That's an exciting time. All right. Well, it's that time? During the market Monday segment where we go to the mailbag and Jerry, if you have an extra minute or so, would you mind answering the question? Try?We have, well, we have a gentlemen named Jackson who asks, which market will see the homes come back on the market, Bluffton or Hilton head. I assume that means which market is going to have more. That's right. I mean, that's a, that's a good question. And I'm not sure. I, I have, I have the correct answer, but I have an opinion we've seen so far this year, that Bluffton inventory has outpaced what's happened on the island, but I expect that with increases in interest rates, we'll see that trend perverse itself.We'll see more inventory. Come on the market on Hilton head. And probably less coming on the market and lost, but I think, you know, I, I think that we're definitely going to see an increase in inventory in both markets as we go through 2022. Wow. Well, we sure need it. He needs some saints can get some properties for people to consume because it has one type.We, we certainly do people who have been in the market to purchase a property, have been challenged with. I think, you know, the lack of inventory and multiple offers on properties that after sale. So some additional inventory would be welcomed by everyone. Yes, but Gerry thanks so much for joining us this week and we'll be back with Hilton head island and then stats next week.