We’re pleased to let you know the real estate market on Hilton Head Island is developing a new attitude. The excessive buyer demand of the last two years, which drove our market into an absolute frenzy and pushed real estate prices to record heights, has exhausted itself.
This day was inevitable, and hastened by a dip in consumer confidence in the face of rising inflation. The combination of these events is allowing inventory levels to slowly creep up. In Sea Pines for example, they began the year with 9 homes listed for sale and today there’s around 40 homes. With these new forces developing in the market, it’s breaking the back on bidding wars. Multiple offers are still possible on some select properties, but buyers have become hard-pressed to chase much over the asking price.
With our current market operating at pre-Covid levels, sellers have taken notice of these shifting winds and have begun to moderate their expectations and pricing strategies. Unlike the previous two years, sellers are ready and willing to negotiate today.
The question, and the ongoing debate we’ll have for the rest of the year, is whether we can consolidate our new pricing highs into a solid pricing floor? With inventories running at 1%, demand fairly consistent, and the island as desirable as ever, it’s reasonable to think this may happen.
Q2 Numbers
Island-wide, home sales fell 32%, year-over-year, while the median sales price increased 17.2% to $902,100.
Island-wide, villa sales decreased 18%, year-over-year, as the median sales price gained 35.4% to $446,900.
Home sales in Sea Pines dropped 30.7%, year-over-year, as the median sales price gained 25.3% to $1,440,000.
Villa sales in Sea Pines edged down 11.4%, year-over-year, while the median sales price increased 30.3% to $712,500.
In the last two years, the Case-Shiller U.S. National Home Price Index has gained close to 37% in value. During this same period, the median sales price for a home on Hilton Head Island has appreciated by 55% and 80% in Sea Pines. Concurrently, the median sales price for villas, island-wide, has increased by 65% and 72% within Sea Pines.
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:
The Most Beautiful Place in South Carolina
Where do you think the most beautiful place is in South Carolina? The editors at Travel + Leisure have given weighty thought to this question for our state, known the world over for “Smiling Faces, Beautiful Places,” and to each state in the rest of the country. To discover the results of their esteemed opinion, and to see if you guessed right, please read: The Most Beautiful Place in Each U.S. State. It’s often said that living on Hilton Head Island is as spectacular to the senses as living in any National Park. The editors at T+L would probably agree!
Summertime and the Fishing is Easy
Anglers coming to Hilton Head Island this summer will be thrilled to find an abundance of fish lounging along our sandy shores. And, they’ll find even more fish maturing in our beautiful estuaries, swimming in our soupy creeks, clustered deep around artificial reefs just off-shore, and sailing through the air in the Gulf Stream.
In fact, our waters are so varied and bountiful that FishingBooker.com just named Hilton Head Island as America’s 2nd best destination for summer fishing. For details on the island’s newest accolade, and to learn what other locations placed in the top 10, please click on FishingBooker: Top Ten U.S. Summer Fishing Destinations for 2022.
Escape to Nature
The Sea Pines Resort is offering several getaway vacation package deals for this fall and winter. They’ve bundled together some incredible incentives and joined it with complimentary world-class amenities. It’s all designed to create unforgettable family fun and memories.
The Stars are Aligned
If the red hot seller’s market of the last two years left you feeling uncomfortable and on the sidelines, you’ll be delighted to know those days are behind us. With inventories finally on the rise and sellers willing to negotiate, now is an excellent time to engage our services.
If you’re contemplating the sale of your property, it’s a new day in our marketplace and there’s much to discuss with the changing dynamics. To capitalize on the current conditions, please give us a call.
As always, please don’t hesitate to pepper us with your thoughts and questions. We look forward to providing you with stellar service.
Thanks and have a fantastic summer!
