Q2 2024 Performance Snapshot
Island-wide home sales: +12.4% YoY; 22.4% below 2019 levels
Island-wide home median: $1,087,500, +8.7% YoY; +105.1% since start of 2020
Island-wide villa sales: -4.3% YoY; 19.4% below 2019 levels
Island-wide villa median: $520,000, +2.9% YoY; +111.3% since start of 2020
Sea Pines home sales: -3.9% YoY; 16.9% below 2019 levels
Sea Pines home median: $1,337,500, -0.9% YoY; +111.8% since start of 2020
Sea Pines villa sales: -13.5% YoY; 20.3% below 2019 levels
Sea Pines villa median: $810,000, +9.4% YoY; +86.2% since start of 2020
Sea Pines home inventory: 70.5% below January 1, 2020 levels
Island-wide inventory: 4.1 months of supply; up 78.6% YoY
National context: NAR home sales -2.8% YoY through May; prices +5.8% — HHI homes up 105.1% since 2020
We’re pleased to report the real estate market on Hilton Head Island is holding its own as the attitude of buyers from around the country sinks to all time lows. Fannie Mae recently released a survey finding 86% of consumers thought this was a bad time to purchase real estate. However, 14% of those folks thought otherwise and a number of them were on Hilton Head seizing the day and embracing the Island’s lifestyle.
On the one hand, softness in demand is moderating the strength of pricing and sales around the Island. On the other hand, with inventory still so tight, bidding wars remain common on nice properties in good locations. These bidding wars are a bit different than from a few years ago. Buyers today are competing on price rather than on concessions such as home inspections.
Realtor.com recently reported that year-over-year through May, inventory levels in the South have risen 47.2%. On the Island, inventory is up 78.6% during that same period and now represents a 4.1 month of supply. Anything below 6 months is considered to be a sellers market.
For another perspective, Realtor.com reports inventory around the country remains 34.2% below pre-pandemic levels. Currently in Sea Pines, the inventory for homes is 70.5% less than what it was on January 1st, 2020. And since February of 2021, the inventory level for homes and villas in Sea Pines has remained at or below 1%.
Having such scant inventory on the market for all these years has produced some astonishing results. Zillow reports home values around the country are 45% higher than before the pandemic. Here on the Island, the median sales price for a home is up 105.1% since the beginning of 2020. For villas on the Island, the median sales price is up 111.3%. You’ll find the median sales price for homes in Sea Pines has gained 111.8% and villas are up 86.2% respectively.
Here’s the good news for buyers. There’s no need to fret, you haven’t missed the boat to your dream Island yet. Even with property values doubling on Hilton Head over the last 5 years, real estate values on the Island have only now reached parity with the rest of the country according to the S&P CoreLogic Case-Shiller National Price Index. From January of 2004 to January of 2024, the Case-Shiller Price Index rose from 139 to 310, an increase of 123%. Here on the Island, the median sales price for a home during that same period rose 126.5%, from $470,000 to $1,065,000. Reasonably priced real estate can still be found on Hilton Head Island vis a vis the rest of the country.
As much as anything, what powers the Island’s real estate market comes from Hilton Head Island’s reputation as being a world class resort destination for active retirees. And the one segment of the market that won’t put their plans on hold, are soon to be retirees.
A Look at the Numbers
Q2 2024 Hilton Head Island Home Market Performance
Home sales Island-wide increased 12.4%, year-over-year, and the median sales price gained 8.7% to $1,087,500. However, sales remain 22.4% behind 2019 levels. Of note, The National Association of Realtors reports home sales through May are down 2.8%, year-over-year, and prices are up 5.8%
Q2 2024 Hilton Head Island Villa Market Performance
Villa sales around the Island fell 4.3%, year-over-year, while the median sales price increased 2.9% to $520,000. Sales are running 19.4% behind 2019 levels.
Q2 2024 Sea Pines Home Market Performance
Home sales in Sea Pines dipped 3.9%, year-over-year, and the median sales price edged down .9% to $1,337,500. Sales are 16.9% behind 2019 levels.
Q2 2024 Sea Pines Villa Market Performance
Villa sales in Sea Pines fell 13.5%, year-over-year, as the median sales price increased 9.4% to $810,000. Sales are running 20.3% behind 2019 levels.
For a comprehensive review of Hilton Head Island MLS sales data for Year to Date through Q2, 2024, please click on the links below:
Q2 Hilton Head Island Homes
Q2 Hilton Head Island Villas
Q2 Sea Pines Homes
Q2 Sea Pines Villas
For all other communities, please contact us for a personalized report.
Real Estate 2.0
By August 17th of this year, the new rules to real estate will be up and operational around the country. In fact, new documentation and procedures that align with these new rules are already being implemented in anticipation of the start date. Most notably, it is no longer assumed the seller will offer a commission to the buyer’s agent. Sellers will have broad discretion on what, if any, compensation they’ll offer to the buyer’s agent.
And buyers, who choose to have fiduciary representation, will now be responsible for paying their agent’s commission and entering into Exclusive Buyer Agency Agreement before any substantive conversations on a property can occur. The Agreement will spell out the geographic area to focus on, price range, time frame of the agreement, and the amount of compensation they agree to pay their agent. These Agreements can last anywhere from a day to a year which should give buyers the opportunity to find the right agent for their needs. The chief goal of the DOJ is to give buyers and sellers the ability to control costs by negotiating the compensation they agree to pay their agent for the services rendered.
One of the ways this new system is being envisioned has the buyer, and their agent, turning to the seller first to see what, if any, compensation the seller is willing to pay the buyer’s agent. If what’s being offered is less than the amount the buyer has agreed to pay their agent, the buyer will then be responsible for bridging the commission gap to their agent. This may influence which properties a buyer is willing to consider, so it’s a good reason for sellers to think about offering a commission to the buyer’s agent.
We’re pleased to delve deeper into this conversation with you so that you know your rights and options. There are two documents a buyer will need to sign before they can have any meaningful conversation with an agent. The first document is the South Carolina Disclosure of Real Estate Brokerage Relationships and it defines the types of representation available to buyers in South Carolina. The second document is The Exclusive Buyers Agency Agreement and it defines the terms, duration and fee a buyer is willing to pay their agent.
While the new system is a great departure from past practices, our initial interactions with it so far have been pleasant and straightforward.
The Best Rooftop Bar in the Country!
Locals have always known the Ocean Lounge at The Sea Pines Resort was a great place for a romantic drink or to have dinner with friends under the stars. What we didn’t know until recently was how everyone else felt.
Using data from TripAdvisor and Instagram, the editors MandoeMedia have released their rankings of the 50 Best Rooftop Bars in the World and in the U.S. for 2024. According to their extensive research, they’ve determined the Ocean Lounge at The Sea Pines Beach Club to be ranked No. 1 in the U.S. and No. 5 in the world!
As always, we look forward to providing exceptional service to all your real estate needs on Hilton Head Island. Please don’t hesitate to call us with all your questions. It’s a pleasure to be of help!
Wishing your and your family a wonderful summer.
