June 2009 Issue

    INSIGHT
    by Patrick Anderson


    Encouraging Signs for St Simons Island Real Estate

    They say it's always darkest before the dawn. And trying to navigate the market
    during the last few months has been like walking through the forest at night ...
    you never know what you're going to bump into. But there are encouraging
    signs and at least some reason to believe the timing may be right for reluctant
    buyers to jump back into the local market.

    St. Simons Island had 25 MLS residential sales reported last month. While not
    a particularly high number historically, it is the strongest month since 25 in
    June of 2008. There were 30 in May 2008. The Islands as a group have produced
    an average of only 10 MLS residential sales per month over the past six months,
    so 25 sales in May of 2009 is a welcome result. (see Transactions report for
    area by area statistics).

    Further, the area is starting to see a return of the million dollar sale after several months of frightful darkness. May 2008
    produced 6 such transactions in Glynn County while the previous two months produced only one. (See Warranty Deeds
    report for all the details). While not an earthshaking total, this signifies that at least some buyers are seeing well enough
    through the darkness to pull the trigger on large transactions.

    It should not be forgotten that the Islands were the first area locally to feel the effects of the real estate slump. Island sales
    started declining as early as 3rd quarter 2005 while Mainland sales didn't weaken until 4th quarter 2006 (see Transactions
    report). So it should surprise no one if the Islands lead the way out of the forest

    Nationally, pending home sales have been up three months in a row. This is considered a leading indicator of future results
    and a good sign for the market (see Pending Home Sales article). The National Association of Realtors also report that April
    existing home sales were up 2.9% over March 2009 while still down 3.5% from April 2008.

    Coupled with the above signals, economists are now predicting rising mortgage rates (see Quick Takes article). Buyers
    currently on the fence should strongly consider jumping into the marketplace, especially if they anticipate borrowing under
    the $417,000 Jumbo Loan threshold.
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St Simons at Dawn          by Patrick Anderson