Hilton Head Island Real Estate Market Witnesses Significant Developments in the Summer of 2024
In Hilton Head Island, South Carolina, the real estate market has experienced notable shifts as of August 2024. The changes observed can be expected to impact potential buyers, sellers, and industry professionals in multiple ways.
Average Duration on the Market on a Rise
Latest data shows that the average duration for properties staying on the market has been gradually increasing. With homes staying on the market for approximately 60 days, as compared to 46 days during the same period the previous year, a slight slowdown in the pace at which homes are being sold is evident. This gives potential buyers more time to finalize their decisions.
Sale Prices Slide
The average sale price of properties has witnessed a decline, with houses now being sold at close to 96.0% of their original asking price, compared to 97.1% a year ago. Translating approximately to an $11,550 difference based on the median sales price, this indicates the willingness of sellers in making concessions to get the deals closed.
Inventory Availability – A Mixed Picture
The number of new listings on the market has seen a drop recently, affecting the total inventory count. While there was a 10.2% increase in inventory year over year (rising from 703 properties to 775), the overall figure dropped by 41 from 816 properties in June 2024. However, compared to the 1,763 properties available in 2019, the current inventory still indicates relative market strength.
Drop in Monthly Sales but Year-to-Date Sales Skyrocket
The total closed sales for the past month recorded a 9.2% decrease from the same period last year with 167 properties sold. However, the year-to-date sales recorded a significant boom, with a 33.6% increase. Post accounting for the 775 properties currently for sale, and with 167 monthly sales, the absorption rate has slightly increased to just over 4.6 months. This rate signifies a gradual shift from a seller’s market towards a neutral, balanced market in Hilton Head Island.
Median Sale Price Increase and Federal Factors
The median year-to-date sale price for homes in Hilton Head has witnessed a small rise of 1.45% since 2023, reflecting the stable demand and appreciation of value in the area. However, prospective buyers should mind the potential decrease in the Federal Funds rate, as it could further influence mortgage rates and buyer activity.
The Future Real Estate Landscape
As the upcoming general election could see some buyers and sellers adopting a “wait and see” approach, the forthcoming activities in the market may be influenced. Hence, staying informed about these trends will continue to be imperative in making educated property decisions on Hilton Head Island.
