Hilton Head Island Real Estate Market Witnesses Dynamic Shifts in August 2024
Famed for its 12-mile-long beachfront, Hilton Head Island in South Carolina is seeing some interesting changes in real estate dynamics. From an extended average period of property listing to a steady increase in the median sales price, the real estate market in this picturesque island is undergoing numerous shifts.
Average Days on the Market
As of early August 2024, homes are staying on the market for approximately 60 days. This is a gradual increase from 46 days during the same period in 2023. Despite being a subtle rise, this reflects a slight cooling in the pace of property sales, allowing potential buyers extra time to make well-considered decisions.
Sale Prices
Properties are now selling for just under 96.0% of their original asking prices, a slight decrease from 97.1% a year ago. Though the dip may seem insignificant, it amounts to roughly an $11,550 difference based on the median sales price. This suggests that sellers are being more flexible in order to finalize deals.
Inventory Conditions
New listings have experienced a slowdown recently which seems to be impacting the available inventory. Although inventory is up by 10.2% year over year, the overall count dropped from 816 to 775 compared to last month. This indicates a fluid supply situation in the market. However, the current inventory is much lower as compared to the whopping 1,763 properties listed in 2019, emphasizing the relative strength of the market today.
Sales Figures
Interestingly, the past month witnessed a total of 167 closed sales, marking a 9.2% decrease from the same period last year. However, the cumulative sales for the year have shown an impressive surge of 33.6%. With 775 properties listed for sale and an average of 167 sales per month, the absorption rate stands slightly above 4.6 months. This suggests a possibility of the market inching towards a balanced scenario from the existing seller’s market.
Potential Shifts in Federal Funds Rate
Changes in the Federal Funds rate have the potential to impact the local real estate sector, as they could influence mortgage rates and buyer activity. All eyes are on this significant influencing factor.
Sale Price Trend
The median sale price for homes in Hilton Head Island has seen a humble increase of 1.45% in the past year. The price climbed from $1,035,000 in 2023 to the current $1,050,000, portraying persistent demand and value appreciation.
As the inventory expands and demand stays strong, understanding these trends is crucial for all real estate stakeholders. Given the approaching general elections, it is anticipated that some might adopt a “wait and see” approach, which may affect market dynamics. Stay tuned for the next month’s report to keep abreast of Hilton Head Island’s dynamic real estate market. Have a great August!
