When it comes to the local housing market, don’t let the numbers fool you.

True, there are more real estate listings on Daniel Island than ever before. And yes, the average days a house stays on the market has increased from mere hours years ago to between 30 to 60 days or longer today. But if a recent record-breaking contract is any indication, this island town remains a powerful force in real estate both locally and nationally. According to Dan Kingsbury, Vice President of Sales and Broker-In-Charge for Daniel Island Real Estate, the company has its first pre-construction custom home and lot contract signed for $6 million, putting the island in a league with hot property zones like the Charleston Peninsula.

"We really celebrated. It was a huge thing," said Kingsbury from his office in The Daniel Island Sales Center. "…It was quite the benchmark and puts us up into what we call ‘rare air’."

Although the deal will not be "official" until the property legally closes next year, it will undoubtedly help Daniel Island breathe a little easier in today’s softening real estate market. Earlier this month, the National Association of Realtors announced that U.S. home sales dropped nearly 3% in January, the lowest in two years. Still, The Daniel Island Company remains optimistic their award-winning community will continue to beat the trends.

"While some national reports warn of a possible burst of the so-called real estate ‘bubble’, we don’t see a danger of that happening here," said Julie Dombrowski, spokesperson for The Daniel Island Company. "Overall market conditions in Charleston are strong, and there continues to be a high demand for coastal properties like Daniel Island."

While Daniel Island’s numbers have declined somewhat, from $255 million in sales in 2004 to $232 million in 2005, Kingsbury is equally confident real estate here is showing no signs of slipping.

"We are slightly below what we were in 2005, but in February alone we did $22 million" added Kingsbury. "We’re happy, but we’re also a victim of our own success. Our new single family homes now start at around $600,000, compared to $200,000 four years ago, so you’ve eliminated a large part of the market. In spite of that, to be only slightly behind in the first two months of 2006, we’re very pleased."

Another reason for the dip, says Kingsbury, could be the sales of multi-family units, or condominiums, over the past two years. In 2004, there were 334 condos offered and sold for a total of $91 million. Only 70 units were put on the market in 2005, generating $25 million.

"So when you factor that in, we really would have done better, it’s just that in our cycle we really didn’t have any condominiums, with the exception of those 70 units, for the most part last year. This year, we’ll have about 300…we’ve not had any condos remain for sale after a given year."

When asked if he felt the island’s controversial affordable housing complex, being constructed on Daniel Island Drive, has had any impact on real estate on the island, Kingsbury had this to say.

"No more than one or two people said ‘I’m not going to buy because of the Humanities’ Foundation Project.’ There have been many who said ‘we’re concerned’…but only a tiny handful said they still couldn’t get past it. There may be more who never came to us…but overall the impact has been minimal."

Kingsbury says the "frenzied" buying in years past has seemed to level off. In those days, most everything under $800,000 was sold using a "drawing" format. When Daniel Island Real Estate offered the 177 condominium units at 254 Seven Farms Drive in 2004, they received 800 "letters of intent." Today, in contrast, only about 30% of home purchases are drawings.

"If someone asks what it’s like here today," added Kingsbury, "I just say ‘it’s no longer insane, it’s just very, very good’ because if it stays insane, you will have the bubble burst, it can’t last forever…You can’t have wild appreciation and record-setting price increases because of the hot market and not have, at some point, your leads drop off…and affect your number of sales."

Even though the number of sales may go down, notes Kingsbury, dollar volume typically doesn’t because prices are more expensive. Currently, there are about 95 property listings on Daniel Island, says Kingsbury, with about 70 more in neighborhoods along the Clements Ferry corridor.

Many of the island’s sales, say realtors, are by homeowners hoping to "cash in" on the increased equity in their homes. According to Daniel Island Real Estate, the average price per square foot today is $270 on the south end of the island and $350 on the north end. Some properties have reportedly doubled or even tripled in value. Kingsbury jokingly tells clients, "I know what you paid for your house and what you just sold it for, so when you drive around don’t ever speed because you’re gonna be pulled for grand theft!"

And while some island residents have sold their properties and moved to other locations in the Lowcountry or elsewhere, the majority chooses to stay. According to Kingsbury, two-thirds of sales on the island are from homeowners "buying up or down" or they are referrals from island residents.

"That tells you what they think of this development," said Kingsbury.

"It is very rare that I come across a seller who is moving off the island," commented Scott Campbell of Prudential Carolina Real Estate. "Quite a few are attracted to the idea of not having a mortgage, so they apply their equity to another home or condominium on the island. Others love Daniel Island Park and upgrade to get on that side of the island."

Of the Daniel Island real estate closings within the 29492 zip code in February, the Charleston Trident MLS reports that the average number of days a property spent on the market was 52, compared with just 16 one year ago.

"There is definitely a lot less activity than there was at this time last year," added Campbell. "Last January, February, March and April the market was blistering hot. In May of 2005, there was a dramatic drop. There has been an adjustment… but the market is coming back."

"I would say the only (sellers) suffering are the ones who may be naïve about upgrading for the appropriate price range or the ones who say they are just going to throw a price out there," said Kingsbury, cautioning sellers to price their homes realistically…"We have taken some that are too high, but we won’t take any that are just ‘nutty’. We say ‘look, you need to decide, either you rent it out for a year and wait, or get real on your pricing’…"

Another difference in today’s Daniel Island market is that the buyer has higher expectations. In the $600,000 and higher price range, Kingsbury says buyers are looking for granite countertops, heavier crown molding, a better trim package, nicer hardware, hardwood floors, fancier master bathrooms and more. If a homeowner purchased a house in the $300,000 range and now wants to sell it, he or she must be willing to make a few changes to get top dollar today.

"If (a seller) is unwilling to upgrade, they often become very disenchanted because they haven’t figured that out," Kingsbury said. "You may need to spend $30,000 or $40,000 to get another $100,000."

Overall, island realtors feel today’s elevated prices are fair.

"Most people understand that with Daniel Island being an ‘island’ they’ve come to expect that the prices are going to be different than in say Summerville, Mount Pleasant, or the surrounding areas," said Derrick Lemon, an island resident and realtor with Exit Charleston Group. "Today’s buyers realize what’s out there and what they can get for their money."

As in most real estate markets, Kingsbury says timing is everything.

"When a market explodes, the very last group of buyers say ‘wait a minute, I’ve owned (this house) for 6 months now and you’re saying it’s worth the same?’ All that would mean for them is that they can’t flip it for crazy money. If they keep it for two or three years, they will have a handsome return. It’s just not going to be obscene."

In an effort to discourage "investment flipping", when a property is purchased and quickly sold, Daniel Island Real Estate has implemented a new policy stating buyers of new condominiums cannot sell for one year after closing.

"The problem is if there is any kind of slowness in the market, investors bail," said Kingsbury of market problems in Las Vegas, where there was no lid on investment sales. "…Then you have supply and demand issues. We have fought and taken great measures to limit investment flipping…We want people to use their properties."

Another way to help keep the island market strong, adds Lemon, is for all realtors to work together.

"I would really like to see better communication among agents," said Lemon. "If everyone helps everyone else out with listings and showings, it is best for the community…It’s similar to the ‘Miracle on 34th Street’ philosophy. I may not have this at my store, but you can get that across the street."

For now, it seems realtors and homeowners can continue to bank on the island’s allure and overall resilience in the housing market. So while national real estate forecasters predict rough seas ahead, it would appear Daniel Island is well positioned to weather the storm.

People in the Lowcountry aren’t the only ones who have heard about Daniel Island and all that it has to offer. Places like Boston, Greenwich, Chicago, Charlotte, Atlanta, Washington DC and parts of New York and New Jersey are also "in the know" thanks to the stepped up marketing efforts of the Daniel Island Real Estate team.

"Not too many brokerage companies hit a quarter of a billion in net sales a year," said Dan Kingsbury, Broker-In-Charge at Daniel Island Real Estate. "…We have no debt on the property. It’s huge, but better than that the ownership group (here) has a long-term philosophy to spend and do the right thing and it will pay off later. Now we are bearing that fruit."

A $1.25 million marketing budget has helped Daniel Island Real Estate attract buyers from 38 states, generating some $500 million in sales over the past 6 years. In addition to making sales presentations in target cities nationwide, the company is inserting key promotional pieces into newspapers, like USA Today, in the geographic regions that meet their "buyer profile."

So what is the typical Daniel Island resident interested in? According Kingsbury, market research has revealed that wine, walking trails, nature, fitness, travel, and shopping all top the list. "I think it’s really sophisticated and exciting. We have spent time and money both in understanding the demographics of our buyers and psychographics, or what their lifestyle is about…We’ve had some really good leads from both telephone calls and e-mails. It’s cutting edge and it’s working."

An emerging market in South Florida has also caught the attention of Daniel Island marketers. Kingsbury and others in the industry call the group "halfbacks" because they are originally from the Northeast, moved to Florida and now want to come halfway back.

"(Florida) just wasn’t what they hoped it would be," said Kingsbury. "It’s a growing market for us. We’ve gotten such interest in the last 90 days that we are going to spend more money (marketing) in Florida…we’re very encouraged."

In addition to strong brand awareness, there are other factors contributing to Daniel Island’s real estate success.

"Let’s start with the magic and charm of Charleston," said Kingsbury. "In my opinion, virtually all women love Charleston, and who are the drivers in purchasing real estate? Women!"

Other perks include the uniqueness of Daniel Island, its small town atmosphere and easy access location.

"I often call it Mayberry with fiber optics," said Kingsbury. "And most people love that…We’re also the epicenter of the Charleston Metro area."

Another philosophy that has worked, according to Kingsbury, is the island’s creed to "under promise and over deliver."

"Six years ago there was so little here. There was no Publix, no Family Circle Stadium, and you had the threat of the State Ports Authority building on Daniel Island, so we really had credibility issues," he said. "People wondered if we were really going to build our own small town."

That doubt quickly evaporated as the island began to take shape and reached what Kingsbury calls "critical mass."

"We now have a professional soccer stadium, a professional tennis facility, a full blown country club, two fantastic golf courses, schools, churches, a myriad of shops…and you couple that with the lowering of interest rates and we really exploded."

Those "explosions" continue with the addition of new housing developments on the island. One of the newest neighborhoods is Smythe Park, on the island’s south end. According to Kingsbury, the park, which will include $2 million in improvements, is scheduled to be dedicated this year. But the project generating the "greatest buzz" on the island, notes Kingsbury, is the planned $45 million Carnegie hotel. Set to overlook Philip Simmons Park on River Landing Drive, the "four diamond facility" would include a world class spa, restaurant, pools, meeting space, courtyards and valet parking.

"It will really be a source of pride for all homeowners," Kingsbury said.

Another 250 multi-family units, or condominiums, are planned for the island’s south side in 2006. In addition, 24 ultra luxury condominiums are set to be built on the golf course in Daniel Island Park. New construction on single family homes continues in neighborhoods on both sides of 526.

"Activity breeds activity," added Kingsbury. "It’s a wonderful thing. It’s what you want."