We’re thrilled to report that for the fourth year in a row, and in the midst of struggling sales, the real estate market on Hilton Head Island has posted another impressive year of rising real estate values.
NAR reports real estate prices around the country have risen 40% since 2020, but on Hilton Head Island, the median sales price for homes has gained 90.5%. Incredibly, our market remains a value proposition when compared to other resort markets such as Vail, up 105%, and Nantucket which gained 108%, both through Q3 of 2023.
Never in our careers have we seen the principle economic levers that control our market move in such dramatic fashion as we’ve seen over the last four years.
The first lever moving our market comes in the form of persistently strong demand from folks purchasing into the Island’s resort lifestyle, regardless of economic conditions. Demand was so strong in 2020 and 2021 that it collapsed our inventory levels to record lows and has largely kept them there. But as strong as buyer demand for Hilton Head Island has proven to be, it moves like the tides with ebbs and flows.
And nothing in real estate controls the flow of transactional tides with more gravitational force than adjustments made to the interest rate. Our market’s second lever is controlled by the Fed and when they reduced interest rates, into an excited market in 2020 and 2021, real estate transactions on the Island jumped 40.3% and 33% above 2019 levels. When the Fed began pushing interest rates to 22 year highs in 2022 and 2023, real estate transactions on the Island fell 13.5% and 30.3% below those same 2019 levels. The interest rate tide is expected to recede this year so watch to see if sales transactions pick up.
The third principle lever to our market, which controls pricing, is the availability of inventory. Nothing affects pricing more than the excess or the limitations of properties available for sale. The level of inventory on the Island has fluctuated over the last four years from a low of 0.30% in March of 2022 to 1.39% at the start of 2024.
Looking at the continued interplay of these three market levers, we expect prices to grind higher in 2024, coupled with a slight increase in sales transactions.
A Look at the Numbers
Home sales around the Island fell 19.3%, year over year, while the median sales price gained 14.4% to $1,065,000.
Villas sold around the Island dropped 19.9%, year over year, as the median sales price rose 17.2% to $510,000.
Homes sold in Sea Pines decreased 16.9%, year over year, while the median sales price gained 8.0% to $1,405,000.
Villas sold in Sea Pines dwindled 12.6%, year over year, as the median sales price increased by 3.5% to $735,000.
For a comprehensive review of the Hilton Head Island MLS sales data for 2023, please click on the links below:
For all other communities, please contact us for a personalized report.
Congratulations to the Town of Hilton Head Island!
The Town of Hilton Head Island has taken their role in emergency management to a whole new level. Should a natural disaster hit the Island, the Town is fully prepared to meet the event with structures of response already in place. The Emergency Management Accreditation Program (EMAP) has awarded Hilton Head Island with their prestigious accreditation for the Town’s disaster preparedness. This accomplishment was no easy feat and demonstrates the Town’s commitment to being a world-class community. Hilton Head Island is only one of three communities in South Carolina, and one of 91 communities worldwide, to receive this accreditation. For details please click here.
Let’s Seize the Day
Time is limitless… until it comes to the time we spend with loved ones. 2nd home ownership affords families a place to come together, to foster closer connections and create long lasting memories. There’s no better time than today to begin experiencing what 2nd home ownership can do for you and your family.
Please give us a call. We look forward to providing exceptional service to all your real estate needs on Hilton Head Island!
Wishing you and your family and happy and prosperous New Year,