Hilton Head Real Estate Experiencing a Transitioning Market in 2013


I was speaking to a customer today about our local Hilton Head Island real estate market and I felt I should spread the word to all customers. Here goes:

The real estate market in 2004-2006 was frantic. Inventory was VERY low, buyers were purchasing properties at an historic pace, and pricing was increasing EVERY DAY. This was the epitome of a seller’s market.

As we all know, this type of market is very unhealthy and could not last.

The Hilton Head real estate market hit a brick wall in phases, starting in the summer of 2006, and went downhill from there. Buyers went away, inventory began its historic climb, and the intense seller’s market from 2005 turned abruptly into a dramatic buyer’s market.

Sellers tried to keep prices high, since many purchased at the height of the market. Because of this, buyers waited. And waited. And waited.

Inventory continued to increase until sellers decided to drop prices – I started to see declines in pricing in 2008, although sparingly.

Over the last few years, interest rates have been lower than at any other time in the history of our country. The economy is improving. Unemployment is declining.

And guess what is happening. You guessed it.

THE HILTON HEAD REAL ESTATE MARKET IS STARTING TO MAKE A TURN. WE ARE EXPERIENCING A TRANSITION.

Over the past few quarters, we are seeing the following consistent statistics:

* New Listings are DOWN

* Pended & Closed Sales are UP

* Median Sales Price is FLAT & Gradually INCREASING

* Days on Market is DOWN

* Sale Price/List Price Ratio is UP

* Inventory is Dramatically DOWN

A few years ago, if a customer said “JR, can you find us a 2BR condo near the beach at Tree Tops Villas?” my typical response was “Sure! We have 10 units to choose from!”

Today? There are 2 villas to choose from and 1 of the units is not so appealing.

Why? Because the BEST properties will sell first.

For those of you who are waiting for the best time to make a real estate purchase on Hilton Head Island, it’s time to make a move before everyone else jumps in.

If you’re seriously desiring a property at the best beach in the world, with the best golf courses on the planet, and with hundreds of the best restaurants in the universe, then NOW IS THE TIME!