We’re pleased to report the real estate market on Hilton Head Island is holding its own with continued price gains through the 3rd quarter of 2022. However, there’s no doubt about the change of attitude in our market with buyers expressing more caution and sellers looking to play ball.
Can the economic storm clouds gathering on the horizon promise better days ahead for buyers? Perhaps. It seems certain to blow the froth off the top in pricing, but without a significant increase in inventory, it’s hard to imagine market values declining by much.
In Sea Pines, even though the number of homes for sale is up a whopping 355% since the beginning of the year, only 41 are on the market, representing just 1% of the existing inventory. And out of approximately 2000 villas in Sea Pines, only 13 are listed for sale. This same narrative is playing out across the island, for homes and villas, at all price points.
In Q2 and much of Q3, inventory slowly grew on the island but September saw the first month-over-month decrease in the number of homes and villas listed for sale. After a lull in summertime activity, homes going under contract from August to September jumped 86% (29 to 54) and villas soared by 195% (24 to 71).
If inventory remains near these lows, any economic storm buffeting the island is unlikely to capsize our market. Our ballast is the good fortune of offering folks the lifestyle of their dreams surrounded by immense natural beauty. It’s an irresistible draw.
The number of homes sold islandwide fell 32.8%, year-over-year, as the median sales price increased 17.6% to $911,500.
Villa sales around the island dropped 19.4%, year-over-year, while the median sales price rose 22.9% to $430,000.
Homes sold in Sea Pines decreased 28.8%, year-over-year, as the median sales price increased 7.8% to $1,250,000.
Villa sales in Sea Pines declined 19.8%, year-over-year, while the median sales price gained 24.8% to $710,000.
For a comprehensive review of the Hilton Head Island MLS sales data for Q3 2022, for both on and off-island, please click the links below:
What’s Driving Demand for Hilton Head Island Real Estate?
One possible explanation comes from the good readers of Conde Nast Traveler. In the 35th annual Readers’ Choice Award, and for the sixth year in a row, they just voted Hilton Head Island to be the Best US Island. They didn’t just think highly of Hilton Head Island, over 250,000 of their participating readers scored Hilton Head Island above every other island in the world. To see how they ranked the world’s most beautiful islands, please click here.
This is more than just a banner press for the island. Happy vacationers who fall in love with Hilton Head Island soon become happy property owners, creating a virtuous demand cycle.
How Do We See the Market Going Forward?
Choppy waters coming from the economy will lead to squishy pricing on the island as buyers dig their heels into the sand, and sellers, pointing to the laws of supply and demand, will stubbornly attempt to lock down the gains from the previous two years.
Turnkey properties will continue to attract top dollar and move quickly while properties in need of work, or in poor locations, will take more time and discount to sell. The incentive to buy will come from finding the right property for all the right reasons.
From our experience, finding the right property for you and your family requires due diligence and planning. So why wait? We’re happy to answer all your questions about Hilton Head Island real estate and to help you with your process of discovery and fulfillment.
Please call us today. You’ll be thrilled with your outcome!
Thanks and have a fantastic fall,