Home sales in the Golden Islands continued to hit new highs in 2021 in what continues to be a seller’s market.
Home prices have increased 17% in the past year, with the median home price rising to $ 310,000, according to the Georgia Association of Realtors. The increase is due to a 5% drop in listings while pending sales increased 1%. In other words, more buyers are looking for less homes.
Real estate agent Al Brown, chairman of Al Brown Co., said there was no sign the real estate market would slow down anytime soon in the Golden Isles.
“When you have more buyers and overall inventory goes down 24%, supply and demand dictate prices go up,” Brown said. “The number of days on the market decreased 40% to 26 days and the month’s inventory supply decreased 30% to 1.4 months due to stiff competition.”
The luxury home market is particularly strong, with the sale this year of a single-family home in Sea Island for $ 27.5 million, a record for the state.
Brown negotiated the deal to sell the 14,000 square foot oceanfront mansion owned by Frank Argenbright of Argenbright Security. The new owners are listed in the Glynn County Public Records as LLCs and the individuals wish to remain anonymous, Brown said.
In 2020, three Sea Island homes sold for over $ 6 million. As of November, nine homes have been sold on Sea Island for that price, including the record-breaking sale of $ 27.5 million.
The median price of homes on Sea Island rose 25% to over $ 3.43 million, according to MLS data, making it one of the most exclusive and expensive markets in the country.
Condominiums in Sea Island’s upscale luxury market saw their median prices jump 43.6% to $ 3.76 million. One sold for $ 4 million in 2020, but as of November there have been seven, including a sale for almost $ 8 million.
“The trend was nationwide, which begs a serious question, what will end this solid race or at least block it?” he said.
Interest rates are expected to rise by around 0.25% in 2022, with fluctuations over the course of the year.
The current rate for a $ 250,000 home is down 20% with a credit rating of 720 or higher for a 30-year fixed rate of 3.375% or a 15-year fixed rate of 2.65%, a- he declared.
Demand for housing in the Golden Isles will remain strong even as rates rise, said Mark North, vice president / regional sales manager for United Community Mortgage Services.
“Housing demand and the shortage of new construction and existing housing will replace virtually any rate hike,” North said. “Sales will be more impacted by prices than by tariffs.”
Fixed rates will help homebuyers, he said.
“There is good news for buyers in 2022 when it comes to better fixed rates as compliant loan amounts increase from $ 548,250 to $ 647,200,” he said. “Compliant loans traditionally offer lower fixed rates, lower down payment options and lower credit scores required for approval, which will increase the purchasing power of consumers. “
The coming year should remain a sellers market as long as stocks remain low.