Hilton Head Island Real Estate Market Update: October 2024
As we find ourselves in October 2024, Hilton Head Island is showcasing some intriguing trends in its real estate market. With the summer rental season wrapping up and the air beginning to cool, it’s the perfect time to dive into what’s been happening over the last month.
A Look at Days on Market
One of the noteworthy indicators is the average number of days properties are spending on the market. This October, homes have clocked in at an average of 68 days on the market. This is a rise from 56 days at the same time last year. Yet, it’s still a significant improvement compared to the pre-pandemic average of a whopping 162 days. What does this mean? It suggests that we’re witnessing a movement towards more balanced market conditions, though we’re still not quite back to where we were before the pandemic changed everything.
Sellers Adjusting Expectations
Next up, let’s talk about how much sellers are receiving relative to their original asking price. Currently, properties are selling for about 95.6% of the original asking price, compared to 96.8% last year. Now, while that might seem like a tiny dip, it actually equates to a difference of around $11,000 based on the median sales price. This is definitely something buyers and sellers need to keep on their radar, especially as the negotiation landscape becomes a bit more complex.
Inventory Levels: What’s the Story?
Inventory is always a hot topic in real estate, and this month tells an interesting tale. Over the past year, inventory has climbed by 6% from 667 properties to 708 properties available. While this is a welcome increase, it’s still a rather low number for this time of year since we normally see a bump in inventory following the summer rental rush. To put it in perspective, we had 1,348 properties available five years ago, which is a significant contrast.
Slowing Sales Activity
Let’s not forget about the closed sales activity. October saw 134 closed sales, which is down by approximately 5.25% compared to this time last year. With the current inventory level of 708 properties, that suggests we have just over five months of supply on the market. This is a slight departure from the increasing inventory trends we experienced earlier in 2024.
Median Sale Price Trends
Now for the median sale price, which has dipped by 1.8% this year, dropping from $1.1 million to $1.08 million. This decline appears to be mainly related to the slowing ultra-luxury market, a common phenomenon during election years. It’s worth noting that purchases of second homes at the top end of the market are often quite discretionary, explaining the current hesitance in that segment.
What Lies Ahead?
Looking forward, buyers should definitely keep an eye on interest rates. If predictions hold, we might see rates on the decline, which could stir up competition in the market once again. That said, now might be a golden opportunity to buy before things heat up. If favorable rates come into play, we may witness the return of multiple-offer bidding wars this winter and into spring—especially since there’s a substantial demand that’s just waiting to be released.
While the ultra-luxury segment might not feel the effects right away, it’s clear that a shift is on the horizon. For now, we can speculate that we are experiencing the “calm before the storm”. Until next month, happy house hunting!
