We’re happy to report the real estate market on Hilton Head Island is off to a reasonably good start this year with real estate values continuing to advance higher. Buyer demand has downshifted from a state of unbridled frothiness a year ago to being above average today. Inventory remains problematic and has shrunk an additional 35.1% since the beginning of the year, leaving only 63 homes and 48 villas listed for sale on the entire island. Multiple offers are frequent and winning bids are based on generous terms as much as on price.
Home sales islandwide fell 37.3%, year-over-year, while the median sales price gained 6.5% to $799,000.
Villa sales islandwide dipped 6.6%, year-over-year, but the median sales price jumped 39.9% to $399,000.
Home sales in Sea Pines dropped 34.7% from last year’s record-setting first quarter while the median sales price posted a 21.3% gain to $1,328,000. Of the 59 homes that closed in Q1 2022, only 17 were below the asking price.
Villa sales in Sea Pines have shown the greatest strength on the island with a gain of 5.3% over this time last year and the median sales price has risen 32.4% to $690,500. Of the 40 villas that closed in Q1 2022, only 6 were below the asking price.
For a comprehensive review of the Hilton Head Island MLS sales data for Q1 2022, for both on and off-island, please click the links below:
Who’s Buying in this Environment?
With escalating prices, scarce inventory and competitive bids, some buyers are moving to the sidelines to wait this period out. Others, those with a long-term commitment to the island and the lifestyle it affords, are plowing ahead and sinking their roots into our sandy soil. Buyers are doing their due diligence and picking properties they’ll enjoy for the next 5 years or more. Some folks are looking to lock themselves into the market with a villa purchase. They may seek to take advantage of 1031 tax-deferred exchange opportunities and trade-up along the way to their eventual retirement home. Those that are ready to retire or relocate see this purchase as a longer-term holding of 10 years or more. Folks in this category have always intended to become a part of the island and they’re making good on their plans regardless of the day’s events.
New Rules and Regulations are Coming to Owner’s of Short-Term Rental Properties.
Complaints of nuisance short-term rental properties has The Town of Hilton Head Island reviewing new rules and regulations to curb bad behavior. For more information on this topic, please visit these two links:
‘Balancing act’: Hilton Head wants to regulate short-term rentals like Airbnbs.
Hilton Head Island Town Council Committee Approves Recommendations for Short-Term Rentals
If you flew onto the island last year, you knew you weren’t alone. More than 388,000 arrivals came through the airport causing a 66% increase over pre-pandemic passenger levels in 2019. To answer this sharp uptick in traffic, The Hilton Head Airport is formulating plans to increase the size of the terminal by adding an extra 42,000 square feet to the building’s current 18,000 square feet. The project’s cost is $37.5 million and is expected to take 2.5 to 3 years to complete once it begins.
What’s your Best Beach Day look like?
Hilton Head Island is awarded No. 1 beach town in the south for 2022. The readers of Southern Living magazine recently voted Hilton Head Island as the best beach town in the South.
To book your best vacation experience to Hilton Head Island, look no further than to The Sea Pines Resort Guidebook for Spring 2022. From sharpening your game around the green or net, to taking a sunset dolphin cruise, Sea Pines offers an unbelievable array of outdoor activities perfectly suited for individuals and the entire family.
Whether you’re buying or selling, it’s never too early to start a conversation about real estate on Hilton Head Island. We’re always happy to take your questions, help you to explore your thoughts and to develop a tailored action plan. Please contact us at your convenience.
Thank you and have a wonderful spring season!
