We’re thrilled to report that the real estate market on Hilton Head Island enjoyed another wildly successful year with sales and appreciation. Strong demand was persistent throughout the year and appears to be never-ending. On top of mind as we enter into 2022 is the question of how long can our market continue at this remarkable pace? The answer could surprise us. All the forces that fueled Hilton Head Island’s spectacular run-up over the last two years, the dearth of inventory, and folks looking for a healthy lifestyle, remain intact.
To illustrate, at the beginning of 2020, Sea Pines was running low on inventory with 129 homes listed for sale and the median sales price gained 26.5% as buyers shifted their priorities to resort housing. Sea Pines kicked off 2021 with only 49 homes on the market and the median sales price soared another 35.1%. As Sea Pines enters 2022 with just 9 homes listed for sale, out of approximately 3,800, the market looks poised to continue on its current path.
Over the last two years, buyers have whittled the inventory in Sea Pines down by 93.0%. This dwindling dynamic is found throughout the Island in all categories of inventory.
Against the backdrop of persistently low inventory and rising prices, more properties have successfully traded hands on the Island over the last two years than ever before, and there’s good reason to think this trend will continue.
Goldman Sachs reported in October 2021, “the supply-demand picture that has been the basis of our call for a multiyear boom in home prices remains intact,” and they’re forecasting for home prices to increase another 16.0% in 2022. Zillow gave the 2nd highest call and predicted a price gain of 13.6% in 2022.
Under The Hood in Sea Pines
Sea Pines is crossing over an inflection point, between the old and the new. This transition has been years in the making and involves multiple forces coming together to infuse a new synergy throughout the community. The roots can be traced back to The Sea Pines Resort Company rebuilding its amenities to be on par with any 5 Star Resort in the country. The architectural look, the grandeur in presence and the quality of construction they exemplified, is now being replicated throughout the community in a wave of new home construction.
In fact, everywhere you look in Sea Pines, you’ll see vast improvements being made to the physical infrastructure, to the commercial properties, homes and villas, and to the landscaping and beautification programs in the community’s common areas. Even the beaches have been rebuilt and fortified with new sand dunes. It’s the cumulative effect of all of these positive forces flowing in sync, and set in one of the world’s most beautiful surroundings, that folks are finding so irresistible.
If you’re feeling moved to search for your perfect beach property, The Sea Pines Resort is offering terrific vacation packages now through February 25th. And, February 26th through the end of the year. You might find grabbing a little rest and relaxation, over a real estate purchase, to be wonderfully therapeutic to your well being!
A Quick Look at the Numbers
Island-wide, home sales dipped 6.2% from 2020’s all-time record high of 1,572 closed transactions and the median sales price still gained 28.0% to $799,950. Over the last two years, homes on the Island have appreciated 42.8%. Inventory remains tight at the beginning of this year with only 67 homes listed for sale on the entire Island.
Villa sales from around the Island were exceptionally strong last year with an 8.5% gain. The median sales price climbed 18.7% to $359,100. Over the last two years, the villa market has appreciated 43.6%. The Island began 2022 with just 83 villas listed for sale.
Home sales in Sea Pines edged down 4.5% from the all-time record high of 352 closed transactions in 2020 and the median sales price still managed to gain 35.1% to $1,152,500. During the last two years, the median sales price in Sea Pines has appreciated by 71.3%. 2022 began with a record low of just 9 homes listed for sale.
Villa sales in Sea Pines dipped 18.2% last year while the median sales price climbed 26.2% to $568,000. In the last two years, Sea Pines villas have appreciated by 40.2%. Only 9 villas were on the market, out of approximately 2,000, at the beginning of 2022.
For a comprehensive review of the year-end Hilton Head Island MLS 2021 sales data, for communities both on and off the Island, please click the links below:
Hilton Head Island Remains Undervalued
The S&P CoreLogic Case-Shiller U.S. National Home Price Index reports, from September of 2021, the median price for their National Index has gained 46% from the 2006 market peak.
On Hilton Head Island, the median sales price topped out at $732,000 in 2006, and is now $799,950, for a price gain of just 9.2%. Buyers love a good bargain and they’ll find it on HHI vis-a-vis the rest of the county. This value gap serves as another bullish case for the Island’s real estate market to continue along its current path.
Happy Home Buyers Abound in 2022
Despite the lack of inventory on hand, and the complexity of putting successful transactions together, you’ll see thousands of happy new buyers fulfilling their Hilton Head Island dreams this year.
If the time feels right for you and your family to capture your Island dream, you can rely on our professional expertise to safely guide you through this competitive landscape. Let’s connect to make it happen!
There’s never been a better time to sell
It’s not hard to make a sale these days but how do you capture your property’s highest value in this rapidly changing market? An overpriced property can still be met with resistance but one that’s properly priced, and professionally marketed, can often bring in better results. To capitalize on these market conditions, harness the strength of Sea Pines Real Estate at The Beach Club to work on your behalf. Please call us today for details!
Our Commitment to You
We believe in putting your highest and best interest above all others. We are patient with your process and happy to educate you on the market so that you can make an informed decision in a non-pushy environment. We promise to deliver exceptional care and service to you, and to all of your real estate needs on Hilton Head Island.
Thank you and Happy New Year!