QUARTERLY SALES UPDATE – 2 02 0 E N D O F Y E A R U P DAT E –
Happy New Year! We thought 2021 would never arrive. After the many curveballs that 2020 threw us, we are happy to report that the real estate market at Palmetto Bluff has remained strong. In fact, all previously held real estate records were broken in 2020. Community-wide, we saw 319 closed transactions for $257 million. This represents a 66% increase from our best dollar volume year ever (2006 with $155 million) and a 57% increase from the record unit closing year (2006 with 203 closings). With all the headwinds we had in 2020, these are exceptional results and proof positive that our community model has wide market acceptance. So, how did Palmetto Bluff’s success in 2020 compare to the local market? We looked at several metrics from the Hilton Head Island MLS, and here are a few of the highlights: • Palmetto Bluff had an almost 50% market share for $1 million+ homesite closings in 2020 compared to all of Hilton Head Island MLS. • We had an incredible 100% and 94% market share respectively of $1 million+ and $500K+ homesites closings compared to the mainland golf-centric communities (Berkeley Hall, Belfair, Colleton River, and Spring Island). • Conversely, when looking at all homesite closings under $250k, Palmetto Bluff represented only 12% of the entire market. • For home closings over $2 million, Palmetto Bluff had a market share of 15% compared to the entire Hilton Head Island MLS, and a whopping 77% and 61% share respectively of the $2 million+ and $1 million+ home closings for the mainland communities referenced above. Beyond real estate sales, we are also seeing the strongest demand on record for custom home construction. As of this writing, there were 286 homes either under construction or in the design review process, in addition to the 741 homes already completed. Interest in our Builder Guild homes has been incredible, with 76 new sales in 2020 all being sold prior to completion and most prior to construction beginning. Demand for new homes is at unprecedented levels. One of the biggest drivers of long-term value for all properties in Palmetto Bluff is the level of inventory available on the resale market. With fewer properties to choose from, the values of all properties will continue to rise. In a mature community like Palmetto Bluff, it would not be unusual to see 10-15% of the privately owned properties listed for resale. We now have less than 2% of properties on the resale market today. These are numbers you might have seen in the initial two to three years of Palmetto Bluff’s existence. Such low levels of resale inventory represent an unprecedented opportunity for price appreciation and forward momentum for the sale of new properties, and we look forward to continuing to generate the lion’s share of buyers for properties in the community in 2021. It is clear that our vision to create a real place and not a typical project has added value for Palmetto Bluff, far exceeding anything in the local market. Our focus on the quality of the built and unbuilt environments, our commitment to sustainability and life-long learning, and our dedication to creating an authentic environment continues to pay dividends. Thank you for your continued support. We look forward to seeing you in 2021. Warm regards, The Palmetto Bluff Real Estate Company
W. BRYAN BYRNE
AMANDA CUTRER
JEFF QUINN
MARTIN ROACHE
TRACY SCHYBERG
JIM STATON