As we begin 2012, many of us in the business feel it will be an exciting New Year for Kiawah for many reasons. And early sales activity from our real estate buyers seem to indicate they share this optimism as well.
Already in the first 40 days of ’12, our buyers have signed 28 new contracts to purchase properties on Kiawah! If we annualize these numbers, this is a 25+% increase in the number of buyers this year as compared with last year. And this calculation is based on winter sales activity, which is usually our slowest time for attracting buyers!
Even though we are early into the ’12 market, it may still be worth noting the mix of different types of properties buyers are focusing on so far: 9 Vacation/rental villas & cottages; 4 lots; and 15 single-family homes. This “mix” is quite similar to all of last year’s preferences as single-family homes top the buyers’ choice of purchase.
Last year 49% of the 201 buyers bought single-family homes on Kiawah vs. 54% so far this year; in ’11 20% of buyers bought lots vs. 14% early in ’12; and 32% of this year’s first buyers bought vacation villas & cottages compared to 31% in ’11.
Now, what about the prices? Gone are the days when a buyer could come into my office and offer 25% below list price and still get the attention of our sellers. They were able to do this shortly after the end of ’08 when the national housing bubble burst, but they are seldom successful 3 years later. Keep in mind all real estate markets are unique. In past years (’09, ’10) we still had a lot of over-priced properties on the market that were left over from the pre-2008 boom market on Kiawah. And in many cases, buyers rightfully could expect and get a discount off of those unrealistic list prices.
But today, selling prices have definitely firmed up, inventories are starting to shrink, and prices have started to creep up at bit. For the past 3 years, serious sellers have struggled to find the market by gradually reducing their asking prices. One of the reasons for this shift in today’s market is that sellers are taking more of a firm position when negotiating. An indication of this is many won’t respond to low-ball offers because they just don’t want to go much lower. (note: last year our office wrote nearly 100 contracts for buyers that sellers would not accept!). Most of our sellers are now in tune with the market because they’ve struggled for the past 3 years to find the market by gradually reducing their asking prices. Kiawah’s serious sellers now have their properties realistically priced today and are able to offer buyers a great value at, or very near their asking price.
Another credible factor during this time has been the resiliency and financial strength of the Kiawah community as a whole. As a community, we have weathered the economic challenges of the past 3 years better than most. Having a debt-free master developer and resort owner has had a lot to do with this confidence. Financial strength and stability in tough times is very important to new buyers who have many options available to them when it comes to where they place their money. I believe many Kiawah buyers also sense we are at the bottom of our market. And they have become more comfortable this year by responding positively with their stored up cash. They know and love Kiawah and feel now may be the time to make their move.
And while our buyers and sellers were getting back in sync with our local market, our lending institutions were also going through a learning curve of their own. As distressed properties sold off and market confidence began to slowly improve, our thrift institutions began to get back in business and redefine their lending practices. Consequently, today our qualified buyers finally have access to financing rates and terms our generation has never seen before. This cheap money is now making our existing buying opportunities on Kiawah even more affordable than ever.
With all this being said, I believe the stars are now aligned in a new direction to move us into a new market of opportunity on Kiawah…..excellent prices, great selection of properties, well-established and credible community with awesome amenities, historically low interest rates for long-term financing needs, all located in one of the most beautiful places in the world.
In addition to the dynamics of our real unique estate market, when Kiawah owners look around at other communities, they realize we have so much to be grateful for! Our community has a debt-free developer (KDP) a resort owner/operator (KGR) both of whom have already kept their promises by completing over 95% of our 30-year master plan, they’ve built and are operating a 5-star ocean front hotel and spa. Both owners have a long-term vision to continue to collectively improve our community and our way of life in a first class manor year after year.
All this is further coupled with Kiawah’s financially strong community governments represented in the Town of Kiawah, our Kiawah Community Association, and the Kiawah Architectural Review Board. They all enable us to offer a very complete package of services to our current owners as well as our new neighbors yet to come. And let’s also not forget the beautiful City of Charleston. Right down the road just 30 minutes away. This year she beat out San Francisco as the #1 Best City in America! The sun is truly shining on Kiawah!
Now, if all of this is not enough to be excited about this New Year…..this summer, Kiawah gets to “strut her stuff” on the world stage of the golfing community as we all prepare to host the first “Major” to be held in South Carolina…the 2012 PGA Championship (August 4-12)! It will be played on “the most difficult golf course in the United States” our Ocean Course…and be televised around the world to millions.
How great will all this be? It’s early, but I think it’s going to be a great year!
Already in the first 40 days of ’12, our buyers have signed 28 new contracts to purchase properties on Kiawah! If we annualize these numbers, this is a 25+% increase in the number of buyers this year as compared with last year. And this calculation is based on winter sales activity, which is usually our slowest time for attracting buyers!
Even though we are early into the ’12 market, it may still be worth noting the mix of different types of properties buyers are focusing on so far: 9 Vacation/rental villas & cottages; 4 lots; and 15 single-family homes. This “mix” is quite similar to all of last year’s preferences as single-family homes top the buyers’ choice of purchase.
Last year 49% of the 201 buyers bought single-family homes on Kiawah vs. 54% so far this year; in ’11 20% of buyers bought lots vs. 14% early in ’12; and 32% of this year’s first buyers bought vacation villas & cottages compared to 31% in ’11.
Now, what about the prices? Gone are the days when a buyer could come into my office and offer 25% below list price and still get the attention of our sellers. They were able to do this shortly after the end of ’08 when the national housing bubble burst, but they are seldom successful 3 years later. Keep in mind all real estate markets are unique. In past years (’09, ’10) we still had a lot of over-priced properties on the market that were left over from the pre-2008 boom market on Kiawah. And in many cases, buyers rightfully could expect and get a discount off of those unrealistic list prices.
But today, selling prices have definitely firmed up, inventories are starting to shrink, and prices have started to creep up at bit. For the past 3 years, serious sellers have struggled to find the market by gradually reducing their asking prices. One of the reasons for this shift in today’s market is that sellers are taking more of a firm position when negotiating. An indication of this is many won’t respond to low-ball offers because they just don’t want to go much lower. (note: last year our office wrote nearly 100 contracts for buyers that sellers would not accept!). Most of our sellers are now in tune with the market because they’ve struggled for the past 3 years to find the market by gradually reducing their asking prices. Kiawah’s serious sellers now have their properties realistically priced today and are able to offer buyers a great value at, or very near their asking price.
Another credible factor during this time has been the resiliency and financial strength of the Kiawah community as a whole. As a community, we have weathered the economic challenges of the past 3 years better than most. Having a debt-free master developer and resort owner has had a lot to do with this confidence. Financial strength and stability in tough times is very important to new buyers who have many options available to them when it comes to where they place their money. I believe many Kiawah buyers also sense we are at the bottom of our market. And they have become more comfortable this year by responding positively with their stored up cash. They know and love Kiawah and feel now may be the time to make their move.
And while our buyers and sellers were getting back in sync with our local market, our lending institutions were also going through a learning curve of their own. As distressed properties sold off and market confidence began to slowly improve, our thrift institutions began to get back in business and redefine their lending practices. Consequently, today our qualified buyers finally have access to financing rates and terms our generation has never seen before. This cheap money is now making our existing buying opportunities on Kiawah even more affordable than ever.
With all this being said, I believe the stars are now aligned in a new direction to move us into a new market of opportunity on Kiawah…..excellent prices, great selection of properties, well-established and credible community with awesome amenities, historically low interest rates for long-term financing needs, all located in one of the most beautiful places in the world.
In addition to the dynamics of our real unique estate market, when Kiawah owners look around at other communities, they realize we have so much to be grateful for! Our community has a debt-free developer (KDP) a resort owner/operator (KGR) both of whom have already kept their promises by completing over 95% of our 30-year master plan, they’ve built and are operating a 5-star ocean front hotel and spa. Both owners have a long-term vision to continue to collectively improve our community and our way of life in a first class manor year after year.
All this is further coupled with Kiawah’s financially strong community governments represented in the Town of Kiawah, our Kiawah Community Association, and the Kiawah Architectural Review Board. They all enable us to offer a very complete package of services to our current owners as well as our new neighbors yet to come. And let’s also not forget the beautiful City of Charleston. Right down the road just 30 minutes away. This year she beat out San Francisco as the #1 Best City in America! The sun is truly shining on Kiawah!
Now, if all of this is not enough to be excited about this New Year…..this summer, Kiawah gets to “strut her stuff” on the world stage of the golfing community as we all prepare to host the first “Major” to be held in South Carolina…the 2012 PGA Championship (August 4-12)! It will be played on “the most difficult golf course in the United States” our Ocean Course…and be televised around the world to millions.
How great will all this be? It’s early, but I think it’s going to be a great year!
