NEWS RELEASE
| MarkeTech Information Services
Carolina Shores Publishing
PO Box 31 Charleston |
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION: John Milkereit 843-577-2777 Email: MPRM@CompuServe.com Dennis Fassuliotis 843-971-1016 Email: dennisf@mtechpub.com |
MAILING DATE: JUNE 9, 1999
FIRST QUARTER BOOM IN BEACH RESORT PROPERTY SALES CONTINUES '98 PACE; VOLUME INCREASES, UNIT SALES DROP
The Charleston Area Resort Index (CARI) showed record sales volume at a seven-year high and unit sales at the lowest level in three years, according to the latest issue of the Investment Monitor. An independent news letter, it's published by Dennis Fassuliotis and covers Kiawah, Seabrook and Wild Dunes resorts. The boom in resort property sales continued into the new year.
Fassuliotis reports that the number of units sold continue to decline at Isle of Palms, Seabrook, and Kiawah, but the average price of homes, lots and villas was higher at each location than in any previous first-quarter.
He writes, "First quarter sales activity continues to be characterized with limited supply of properties available for sale and enthusiastic buyers loaded with spending power for second-home purchase." He says that any hopes of a break in the market for bargain hunters were dashed early in the year.
At Isle of Palms the shortage of lots and cost of improving existing structures confirmed an earlier Monitor projection that prices would increase. Now, old existing homes are being purchased for their location, being razed, and replaced by new ones.
The average home value at Seabrook grew more than 2 to 1 compared to Kiawah and Isle of Palms. The average lot value increased over 80 percent, a 4 to 1 comparison, and the average villa value just edged out villa growth at Kiawah with a 42 percent increase in the average villa price.
According to Fassuliotis confidence in the purchase of beach property will be seen in coming months as the market could slow a bit. Some of the wealth created by the stock market for investors that have been purchasing stocks on margin and the possibility of interest rates inching up, he writes, could force some buyers into a holding pattern. However, prospective buyers are already locked into vacation plans for the summer, and will be visiting the market.
The record-setting pace in volume so far in '99 is reflected in the following comparison to the first quarter last year.
CARI First Quarter Total Volume (in millions)
| Resort | 1Q99 | 1Q98 | % Change |
| Kiawah | $58.4 | $62.9 | -7.16% |
| Seabrook | $20.2 | $16.9 | 20.1% |
| Isle of Palms | $41.6 | $38.7 | 7.5% |
| CARI | $120.2 | $118.5 | 1.5% |
Finally, with only one period in the books, 1999 is keeping pace with last year's record setting activity. A snapshot of April activity indicates the second quarter should continue the trend of higher prices and fewer sales. Recorded unit sales for April were down almost 37% from April a year ago, but the recorded sales volume was off less than 6%
Fassuliotis heads MarkeTech Information Services and Carolina Shores Publishing located in Charleston, South Carolina. He can be reached by phone at (843) 971-1016, by E-mail at dennisf@mtechpub.com, and on the Internet at www.mtechpub.com.
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Member: National Association of Real Estate Editors