2019 REAL ESTATE YEAR IN REVIEW
INTRODUCTION & OUTLOOK
Dear Hampton Lake Members, I am pleased to report that 2019 represented yet another breakthrough year for real estate sales in Hampton Lake! We experienced the 10th straight year of growth trends and again Hampton Lake claims the spot as the the top-selling non age-restricted community in the area. Notable metrics include average sales price gains such as lakeview lots which were up 10.5% to an average of $235,585. And resale homes on the Lake saw an increase of over $57K on average - an 8.3% bump from last year to an average sales price of $747,253. Many of the product sections that sold robustly in the last few years are now sold out or nearing sell out. As of the release of this Review, the Lakeside Homes Collection by Logan Homes had just one home remaining and the Cottages at Parkside, also by Logan, had only 2 homes left to sell. Less than 20 units remain with K. Hovnanian Homes in all sections. And only 17 developer lots (custom) are remaining out of the nearly 1,000 custom lots developed since Hampton Lake’s opening in 2006. Scarcity is now quite apparent in most price and type segments and with the low supply, demand is driving prices higher. For 2020, a positive buying climate is expected to yield continued results. The Reed Group development team is finalizing construction on the last lakeview and preserve-view lots in the community. These lots are located to the right of the new entrance on the forthcoming loop completion/extension of Flatwater Drive. These lots, all of which have been sold to builders, will feature custom home plans. Our final new neighborhood, The Witmer Collection, is scheduled for release in the first quarter and is located to the immediate left upon entering the new gate. These two story single family homes will offer an attractive traditional neighborhood design with front sidewalks and a garage entry at the rear of the home on a connected alley. With the new entrance now completed and the Parkside Amenity Center on track for a midyear grand opening, the sales environment should be strengthened by these enhancements to the resident experience and further increase Hampton Lake’s value proposition. In the marketing realm, refinements that were made in early 2019 to increase the quality of prospective buyers has paid off. The community experienced higher total sales with fewer leads and property tours. Eliminating poorer-performing lead sources allowed us to focus more narrowly and produce buyers who were closer in their purchase process to a decision than we have seen in prior years. Finally, a thank you to the members who continue to impress prospective purchasers with smiles and waves. We reguarly hear from our customers about the warm and welcoming encounters they have with residents like you as they tour the community and contemplate making Hampton Lake their new home. Please connect with me directly if you have any comments about this report. And if you have questions specific to the value or marketability of your home or lot, please reach out to one of our sales team members for expert guidance. We look forward to hearing from you. Sincerely,
Chris England Broker in Charge Hampton Lake Realty
2019
Snapshots
299 2019 TOTAL SALES IN HAMPTON LAKE
165 2019 END USER SALES
134
BUILDER LOTS
44
END USER LOTS
121
HOMES
SALES SUMMARY Total transactions in Hampton Lake ended the year at 299, up by 36 sales from last year’s 263 transactions. The total volume for sales transactions increased by $14M to $93.9M. End user sales were down 23 sales from 188 in 2018 to 165 in 2019. Bulk sales to builders were at 134 (there were no bulk builder sales in 2018). End user sales were down slightly, and we expect that end user sales will level off and eventually decline into the future as the community’s final new offerings are sold and the resale market matures and establishes a healthy and more predictable inventory level. The availability of homesites continues to be quite limited and the developer has completed the release of all retail lots to ever be offered, of which only 17 remain. A number of large sales of product lots to builders took place in 2019, including the sale of lots to Logan Homes for the Anchor Bend Collection, and two collections which are still in plan development which have not yet been announced by the builders. Demand remained strong for lots through the year and prices increased across the board. For preserve-view lots, prices rose to an average of $121,253, up 4.5% from $115,993 last year. Lakeview lots increased an impressive 10.5% to $235,585, up from $213,285 last year. Home sales of all types increased slightly from 115 homes in 2018 to 121 homes sold in 2019. Prices increased 2.3% to a community-wide average of $571,969, up from $558,852 last year. While preserve-view homes had a very minor drop in average sales price, lakeview homes broke the $700K mark. And sales of resale homes on the water were in high demand, selling for an average of $747,253.
$93.9M 2019 SALES VOLUME IN HAMPTON LAKE 4
SALES SUMMARY
The 8-year graph tracks the number of end user sales by Hampton Lake Realty, by month. Hampton Lake can often count on late Winter/early Spring and mid Summer/early Fall to yield substantial sales activity. In 2019 we saw a big rebound in Fall sales activity from 2018 which had a drastic drop from September through December. In 2019, Hampton Lake sold 58% more in the last 4 months of the year than in 2018.
2019
Sales of Note
Highest home sale: 24 Palmetto Cove Ct. for $1,260,000. Listed and sold with other brokerages. Highest lakeview developer lot sale: Lot 1211 for $269,900. Listed & sold with Hampton Lake Realty. Highest lakeview resale lot: Lot 3026 for $265,000. Listed & sold with Hampton Lake Realty. Highest preserve view developer lot sale: Lot 1210 for $149,900. Listed & sold with Hampton Lake Realty. Highest preserve-view resale lot: Lot 4849 for $140,000. Listed and sold with other brokerages. Trending: 8 Homes sold for $800,000 or higher. Trending: 31 lakeview lots sold for over $200,000 in 2019. Trending: 11 preserve-view lots sold for over $100,000 in 2019.
5 5
NATIONAL & LOCAL MARKET SUMMARY The country is now in the longest economic expansion in history, and had 127 straight months of growth by the end of 2019. Record low unemployment continued and wages saw increases albeit some leveling off in growth. GDP growth which hit numbers well above 2% last year, are also seeing a leveling off as growth inches back near the historical 2% benchmark. JP Morgan Chase, in their Economic Year in Review, summarized the state of the US Economy this way: “Despite recession risks rising given persistent trade tensions, cyclical sectors of the economy, such as autos, housing, business investment spending or inventories, do not appear over-extended, the labor market is tight, and inflation is stable, making the case for economic resilience.” Specific to housing, affordability remained a hot button issue but showed some signs of improvement in 2019 as inventory caught up and builders responded by developing additional home starts at lower price points. Both inventory and new housing starts increased through the year. Sales of both new and used homes also saw gains. Related, the Housing Market Index (HMI) increased 19 points to 75 from 56 in December 2018. This index, tracked by NAHB (National Association of Home Builders), is a respected indicator of the health of the national housing market. Numbers above 50 and considered positive. Since last year’s Review, the key funds rate experienced three quarter-point decreases by the Fed in 3 consecutive months in August, September and October of 2019. These decreases were implemented due to the Fed’s concerns about slowing growth and muted inflation. A positive outcome of these reductions is that the conforming 30-year fixed mortgage trended down through the year to the mid 3% ranges, some of the lowest mortgage rates in history. For 2020, economists at NAHB are predicting similarly low rates and expect that fixed-rate mortgages will remain low at a forecasted level of 3.88%. Locally, real estate growth in the Lowcountry continues to see year after year gains. Hilton Head & Bluffton markets showed positive movement in every metric. Pending and Closed Sales were up year over year by 8.7% and 5.6% respectively. The Median Sales Price average was up 3.4% from last year. The area’s growth and climate continue to attract buyers nationally. With favorable growth, climate, tax burden, and lifestyle, the demand for real estate in the Lowcountry is well positioned to continue the pattern of year over year growth.
6
BUILDING SUMMARY Construction at Hampton Lake continues at a strong pace. 2019 had a modest 10% dip in total homes completed for the year and represented the 5th year in a row of 100+ homes completed in the calendar year. Builder spec homes and neighborhood lot/home packages represented 57% of all builds completed while end user custom home construction was at 47%, down modestly from 50% last year. New custom homes continue to be built larger every year even as
building costs remain high. Although the rapid increase in labor and materials for home constuction has somewhat moderated, there is no indication that costs will see reductions from current levels and the market demand seems to be bearing the current cost of constuction predictably. As 2019 closed out, there were 59 homes under active construction and 985 completed for a total dwelling unit number of 1044. This is a 72% build-out of all anticipated units planned for Hampton Lake.
The average custom home size has slightly increased in 3 of the last 4 years. In 2019 Hampton Lake saw almost 30% of custom homes being built larger than 4,000sf some of which were over 6,000sf in size.
2019 Building Highlights 72% 1,044
$80M
PERCENTAGE BUILD OUT OF HOMES ON ALL LOTS IN HAMPTON LAKE (COMPLETED AND FINAL PHASES)
TOTAL ROOFTOPS COMPLETED OR UNDER ACTIVE CONSTRUCTION IN HAMPTON LAKE
APPROXIMATE VALUE OF IMPROVEMENTS TO VACANT LOTS IN 2019 (Custom Homes)
TREND SHOWING THE NUMBER OF HOMES COMPLETED DURING EACH OF THE LAST 5 YEARS
7
8
MARKETING STATISTICS
HOME STATES FOR NEW PURCHASERS
32,000+ CURRENT PROPRIETARY MARKETING DATABASE OF PROSPECTIVE PURCHASER LEADS FOR HAMPTON LAKE
4,838
702
NEW PROSPECTIVE PURCHASER LEADS GENERATED IN 2019 FROM ALL MARKETING SOURCES
ON SITE PROPERTY TOURS WITH PROSPECTIVE PURCHASERS BY HAMPTON LAKE REALTY
New Inquiries Last 5 Years
589 NUMBER OF PROSPECTIVE PURCHASERS REFERRED BY OUTSIDE REALTORS
27 NUMBER OF STATES NEW HAMPTON LAKE PURCHASERS CAME FROM IN 2019
9
77 NUMBER OF NEW PROSPECTIVE PURCHASER LEADS REFERRED TO THE COMMUNITY BY CURRENT PROPERTY OWNERS
LOT STATISTICS
TOTAL LOT SALES LIFETIME OF COMMUNITY
In the last 2 years we saw a dip in total lot sales due to a then-sell-out of available product lots for builders and limited retail inventory. With the development of new custom lot phases and builder lots, we saw a big rebound this year which was predicted. We expect that 2019 will be the last year we see lot sales at or near 100 sales as lot development is nearing community completion and vacant, unimproved lots become even more scarce.
10
LOT STATISTICS
With a trend that we expect to continue, resale lots outsold developer lots 2 to 1. With only 17 developer lots remaining at the end of 2019, resale lots should represent most or all lot sales moving forward.
Lot sales to end users were down as a percentage of total sales as predicted and represented a little more than a quarter of total lot sales. The large difference is due to several large sections in final phases which have been sold to builders.
LOT PRICE TREND LIFETIME OF COMMUNITY
Both lakeview and preserve-view lots saw the highest average sales prices in 11 years. Lakeview lots were up 10.5% year over year and saw a 7-year increase of 234%. Preserve-view lots were up 4.5% year over year with a remarkable 7-year increase in of 290%.
11
LOT STATISTICS
This graph shows the 6-year trend for resale lot sales by type. Sales of all resale lots dipped 9% as a result of low supply of preserve-view lots. Lakeview lots saw an increase of 4 sales. With so few unimproved lots remaining in the community, sales numbers should continue to trend down into the future.
Lakeview lots again held an advantage to preserve view lots and sold closest to their list price. The implied discount on Preserve-view lots despite very low inventory may be due to specific lot quality such as unusual orientation or building suitability.
Days on Market for Lakeview lots was back down to low levels where preserve-view lots doubled their average time to sell. Examining the listings showed a number of less desirable lots on the market for over 2 years which lengthened the average time period to sell.
12
HOME STATISTICS
Total home sales increased slightly from last year with 121 sales, the second highest number in community history. Pre-designed neighborhood home sales continue to sell strongly at mid-market price points. Prices below $400K were nearly nonexistent in the community, which kept the home sales number lower than in 2017. We expect that with new builder sections and models opening in 2020 we should again see total home sale transactions in the 100+ range.
13
HOME STATISTICS
HOME PRICE TREND
LIFETIME OF COMMUNITY - ALL HOME TYPES
Average prices for homes increased overall in 2019, with an average sales price of $571,969, up 2.3% from last year - the highest average price in 11 years. Lakeview homes broke the $700K price average, up 3% from 2018. The preserve-view home average dropped slightly to $507,502, just $3,171 less than last year’s average.
14
HOME STATISTICS
The 7-year home price trend for resales excludes lot/home package and pre-designed builder homes. Average pricing rose by 2.6%. Individually, the preserve-view home average was down 3.2% to an average of $521,182. Resale lakeview homes stood out and were up in 2019 by over 3x last year’s gains to an 8.3% increase! The average price of a resale home on the lake reached $747,253.
For the first time since Phase 3 opened, resale and custom spec homes outsold presigned lot/home packages.
15
2,662 SF
AVERAGE SIZE OF ALL PRE-DESIGNED HOMES SOLD
$519,424
AVERAGE SALES PRICE OF ALL PRE-DESIGNED HOMES SOLD
HOME STATISTICS
51 lot/home packages were sold in 2019, 10 less than in 2018. K. Hovnanian sold 67% of these in the Lake Bluff/Foxpath neighborhoods. Logan Homes’ Cottages at Parkside are nearly sold out with just two cottages left at year end. And Logan’s Lakeside Homes Collection, located near the original amenity center, nearly sold out as well with 10 out of the 11 remaining homes selling by the end of 2019.
Oriented with lake views, Logan Homes’ Lakeside Collection and Parkside Cottage neighborhoods sold for the highest average for pre-designed lot/home packages in 2019.
In 2019, resale homes with preserve-views sold 43 days sooner on average than preserve view homes.
Preserve-view homes identically matched lakeview homes when comparing list price to sale price.
16
DEVELOPER LOT STATISTICS
SOLD OUT SOLD OUT SOLD OUT 4 AVAILABLE 11 AVAILABLE SOLD OUT
Lots in Phase 3 (All phases of the Hampton Lake expansion initially released in 2015) included a total count of 242 custom lots. At the end of 2019 only 17 developer lots for custom construction remained that will ever be offered. Additionally, 100% of all non-custom builder lots for neighborhood lot/home packages have been sold.
17
A NOTE OF THANKS FROM THE DEVELOPER As we look back on a remarkable year for real estate at Hampton Lake, we wish to express our warmest thanks to the many who helped us make 2019 so successful. To the Hilton Head Area Association of Realtors, the Multiple Listing Service of Hilton Head, and the entire Hilton Head and Bluffton area real estate community, please accept our warmest thank you on behalf of myself and the entire Hampton Lake sales team. We are privileged to alongside the very best real estate agents in our area. Your ongoing support made it possible for Hampton Lake Realty to accomplish a total of 139 sales in 2019! We couldn’t have done it without you.
Pratt Reed CEO/Reed Group
BROKERAGES
REALTORS
THANK YOU! Aimee Brasington Amy McCormick Andrea Albright Barry Fiebert Beth Bohmert Beth DeAngelis Beth Green Bonnie Bogart Brian Wheeler Charles Mayhew Charlotte Main Cheryl Pierce Chris Haro Christina Forbis Christine Wisniewski Danner Benfield David Thorton
Debbie Iredell Diane Barber Duke Delcher Eileen Smith Fred Hogshead Glenda & Lonny Satterly Howard Cohen Janie Brown Jeff Hall Jennie Moore Joan Weaver John Fee Jon Haldane Julie Hoffman Karen DePace Kasia Pawelek Kathy Fotia
Alliance Group Realty Bay Street Realty Carolina Realty Group Carson Realty Celia Dunn Sotheby’s Int’l Realty Century 21 Diamond Realty Charter One Coldwell Banker Coldwell Banker Platinum Partners
Katie Rice Keller Welch Ken Hiatt Larry Frawley Lee Gray Lisa Sulka Lonnie Goulet Lou Ann Kelly Lorri Lewis Marcia Hunter Mariann Virgona Mary Lynn Finn Myra Davis Nancy Butler Nancy Cantor Nonna Klinect Paul De La Torre
Collins Group Realty Cora Bett Thomas Dunes Marketing EXP Realty Foundation Realty Go Gated Realty Hilton Head Area Properties Hilton Head Island Real Estate Brokers KCT Coastal Realty Group
Randy Fix Rich Reed Richard Kadesch Richard MacDonald Rick Yelverton Robert Rini Robyn Henke Scott Collins Sheri Bush Stacha Schiller Stinson Steve Brown Sue Remble Susan Yahn Tiffini Polacci Tom Jackson Velinda Fisher
Keller Williams Lowcountry Real Estate RE/MAX Island Realty Referral Realty Sea Pines Real Estate Beach Club Southern Lifestyle Properties The Beach Company Weichert Realty
REALTY
OUR HAMPTON LAKE SALES TEAM
Jenny Auld
Chad Doyle
Jamie Lindsay
Sales Executive jauld@hamptonlake.com 843.247.2995
Sales Executive cdoyle@hamptonlake.com 843.816.2187
Sales Executive jlindsay@hamptonlake.com 828.408.3033
Sherrie Taylor
Allen Ware
Brent Whitaker
Sales Executive staylor@hamptonlake.com 843.540.1313
Sales Executive aware@hamptonlake.com 843.384.0684
Stacey Garbett
Heather Wilson
Chris England
Office Manager/Closing Coordinator
Guest Relations Coordinator hwilson@hamptonlake.com 843.836.5255
Broker in Charge cengland@hamptonlake.com 828.836.7430
sgarbett@hamptonlake.com 843.836.7918
Sales Executive bwhitaker@hamptonlake.com 843.446.9144
This is LakeLife
WWW.HAMPTONLAKE.COM
843-836-LAKE (5253)