Encouraging Signs for St. Simons Island Real Estate

They say it's always darkest before the dawn. And trying to navigate the marketduring 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 encouragingsigns and at least some reason to believe the timing may be right for reluctantbuyers to jump back into the local market.

St. Simons Island had 25 MLS residential sales reported last month. While nota particularly high number historically, it is the strongest month since 25 inJune of 2008. There were 30 in May 2008. The Islands as a group have producedan 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 forarea 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.