Hilton Head Island Real Estate Market Update – August 2024

The Real Estate Market at a Glance

Hilton Head Island, South Carolina is going through intriguing changes in its real estate market setting. As observed in the first week of August 2024, there are a couple of major trends buyers, sellers, real estate professionals, and interested observers ought to be aware of.

Primarily, there has been a gradual increase in the average period properties spend on the market. At present, homes are staying on the market for about 60 days, up from 46 days the same time the previous year. This gradual increase signifies a slight deceleration in the speed at which homes are being sold, thus allowing buyers more time to make informed decisions.

Sale Prices and New Listings

Property sale prices are now selling for just under 96.0% of the initial listed price, a drop from 97.1% from a year ago. This minor decrease correlates to roughly a $11,550 difference based on the median sales price and alludes to a market where sellers are making concessions to finalize deals.

The rate of new listings on the market has recently slowed down, subsequently affecting the available inventory. While inventory has increased by 10.2% year over year, escalating from 703 properties last year to 775 in the present year. However, this figure has declined from 816 the previous month. This decrease by 41 properties from June accentuates the fluctuating supply in the market, providing significant insight to prospective buyers and sellers.

Market Strength and Closed Sales

Comparatively, the present inventory is significantly lower than the 1,763 properties available in 2019, accentuating the relative strength of the market. The closed sales for the past month concluded at 167, marking a 9.2% decrease from the same period last year. However, year-to-date sales have seen a considerable surge by 33.6%.

With 775 properties for sale and 167 monthly sales, the absorption rate has slightly increased to just over 4.6 months. This indicates that while Hilton Head Island continues to be a seller’s market, it is leisurely moving towards a more balanced, neutral market.

Market Influencers and Upcoming Trends

Another essential aspect to watch out for is the potential decrease in the Federal Funds rate, which could significantly influence mortgage rates and buyer activity.

The median year-to-date sale price for homes in Hilton Head Island has seen a modest increase of 1.45% over the past year, climbing from $1,035,000 in 2023 to $1,050,000 today. This stable growth highlights the ongoing demand and value appreciation in the region.

As the market continues to adjust with growing inventory and robust demand, being informed of these market trends is crucial. With the approaching general election, it is expected that some buyers and sellers might adopt a “wait and see” approach, potentially impacting market activity.

Stay tuned for updates in next month as we continue to observe these advancements and provide insights into Hilton Head Island’s vibrant real estate market. Here’s to a productive August, Hilton Head!