WHERE'S THE BOUNCE?

The number one question on the minds of local real estate investors is: "When will the market turn?" The mission of this newsletter is to help subscribers answer that question before anyone else. By putting a microscope on local real estate statistics and spotlighting area development activity, we hope to assist our readers in making profitable investment decisions for the future.
Obviously St Simons Island and Glynn County have been affected by the national downturn in real estate. When analyzing the local market, it's helpful to consider the factors that drive local real estate activity in the first place.

On the mainland, a diverse and growing local economy fuels a vibrant real estate market that only recently showed signs of slowing down. Most of the demand has been for mid-priced homes in North and West Glynn County. The statistics clearly show that sales in Mainland Glynn were still going strong until the 4th quarter of 2005 when unit sales first declined against the same prior quarter. (Click chart to enlarge)


Note how in 2004 the number of sales on the Mainland versus the Islands was almost identical. However, by the end of 2006 the Mainland was turning over twice as many homes as the Islands. Clearly, homes with moderate price points targeting permanent residents had became a focal point for realtors in Glynn County.

Unit sales in the Islands started declining during the third quarter of 2004, over a year earlier than the Mainland. This is not particularly surprising given its resort character, higher price points and heavy reliance on second home buyers. It will be interesting to see which segment first shows signs of recovery. We'll be watching closely.