The Golden Isles of Georgia — Lots of Listings, Few Buyers, Slow Start for 2007 (as of 2/05/2007)

The Golden Isles (Brunswick, GA area) did well in 2006 relative to other parts of the country.  Home sales were up 8.5% and average home prices rose 7.3%.   Nationally, existing home sales fell 8.4% and the median price of an existing home ($220,000) did not change from December 2006 compared to 2005 according to the National Association of Realtors. 

Thus far in 2007, we are off to a slow start for what we predict will be another record year for real estate in the Golden Isles.    Our market is really two markets.  Saint Simons Island is a resort location influenced by vacation and second home buyers and sellers and retirees.  Across the causeway in the “mainland,” we have a “real life” market (people transferring in and out for jobs, home owners moving up to larger, newer homes, or homeowners downsizing to smaller homes or condominiums).

Saint Simons Island experienced a “boom” in mid-2005 and home and condo prices skyrocketed.  Sellers have been reluctant to back off prices and Buyers don’t want to pay the high prices for what they perceive is inflated value.  Accordingly, home and condo listings have gone from around 360 total listings to 660.   As of this date (02/05/2007), 16 of 667 listings have gone under contract in the last 30 days.  Breaking this down further, 9 of 387 homes listed on Saint Simons Island have gone under contract within the last 30 days.   Seven of 280 condos have gone under contract within the last 30 days from 02/05/2007.  Based on sales for the last 12 months, Saint Simons has a home inventory of 12.6 months and a condo inventory of 15.6 months.

The mainland experienced a small increase in prices in mid- 2006.  Sales cooled for the latter half of 2006.  Currently, the average inventory of homes in Glynn County is a manageable 6.5 months.

We expect the “mainland” will become a balanced (Buyers and Sellers) market in the 3rd quarter of 2007.  In our view, the high inventories of listings on Saint Simons Island will not clear until 2008, leaving this a Buyers market for 2007.

For the next three to five months, Buyer swill be able to take advantage of great buys in the Golden Isles of Georgia.  Interest rates remain low.  There are many listings — more homes and condos are on the market than ever before.  Owners who must sell are wheeling and dealing to sell their homes.  Buyers can negotiate great prices and favorable terms.  And if the negotations turn sour, Buyers can move on to their next favorite home or condo since there are lots of listings to choose from.