We focus our blog on highlighting important information that buyers should know about as well as trends affecting Hilton Head's oceanfront communities.
I've been getting a lot of questions from clients about the following trends they see when searching around for listings: 1) Many listings have been on the market for over 3 months. 2) A seemingly high number of price decreases. 3) Some listings sell within 24 hours and get multiple offers.
How can all of these trends be happening at once? Follow the motivation.
In a primary real estate market, buyers and sellers looking to make a change often have urgent goals driven by life changes (jobs, schools, etc). Here on Hilton Head, buyers and sellers often have more discretion and are ok waiting for the right opportunity.
For sellers, getting their "make me move" price is often the only goal. If they don't get it for weeks, or even months, that's ok. They will either keep coming down to enjoy their property or, better yet, keep getting rental income as they wait. While some sellers will slowly reduce their unrealistic prices (which is often why you see so many price decreases), others will stay put.
In Palmetto Dunes, I recently worked on a potential deal where we were close to negotiating a final price for a house that was very old and likely a teardown. Surprisingly, the sellers simply lost interest in any potential deal midway through the process and said they hate the thought of no longer sipping coffee on the back porch. As a result, they stuck to their higher number that was far beyond what the comps would support, and the buyer had to look elsewhere. While that is often a frustrating experience, it helped us prepare and get a great deal on the next listing that popped up soon after.
For buyers, making a move to Hilton Head is a big decision. Getting a "forever home" can be a daunting challenge. As a result, if the floor plan is too tight, the ceiling heights are too low, the cart path is too close to the house, or that gator in the lagoon has a funny look in its eyes, the buyers will say, "Let's look for the next one."
While many buyers can get annoyed at not finding the "just right" property, going through this process is the only way for the buyers to truly understand what they want. When the perfect house at an ideal price hits the market and has a lot of interest, buyers who have been looking for a while are often better positioned to get the deal done. They know not only their own desires but also what constitutes a good deal in the market. There was a renovated condo listed in Sea Pines recently with an amazing view of the Calibogue Sound, and it attracted multiple offers quickly. The buyers who won the bid had been looking for a while, had owned in the area before, and knew exactly how much they were willing to pay for it after researching the market for a few months.
If all of this sounds like a lot to navigate, we are happy to help. Let us know if you have any questions as you search for your next property on the island.
Over the past few months, the urgency in our market has been focused on buyers of retirement age looking for their forever home. I've worked with three buyers recently who all took a different approach.
One found a spec home in Wexford that fit their taste exactly. Before they saw it, they had no plans to move to Wexford or move from their other property on Hilton Head. After walking through the house and meeting with the Marketing Director of the community, they realized it was a perfect fit.
Another buyer wanted new construction but did not want to wait the usual 18 months that it would take from start to finish. They were also frustrated that new spec home listings would sell very quickly and they wanted to travel down to the island to see the listings in-person. To help get ahead of the curve, I drove around the community they had targeted, Indigo Run, and identified 5 lots with building activity. When I called one of the lot owners, I learned it was a builder that was scheduled to finish in 8 months and now was the perfect time for the buyers to make design selections.
The third buyer had focused on Leamington. It can be tough to wait for the right listing in Leamington because there are only a little over 300 homes there. We finally found a listing that looked good. The buyers booked the first flight in the next morning and we were under contract the following night. While they are not planning to gut the house, they will be making cosmetic changes to the kitchen and bathrooms that suit their taste.
Whether you would prefer to wait for the right spec home listing, build new, or search for a potential renovation project, contact me to help you find the perfect place that will make Hilton Head your permanent home.
Home prices on Hilton Head continued to go up in 2025. While most areas saw average prices increase by 5%-8%, Sea Pines rose by 23%. This was mostly driven by retirees looking for their forever homes. Across the island, sellers with move-in ready homes asked for above-market prices and they mostly got them. However, there were many sellers with older or lower-quality renovations that priced their homes too high and they sat on the market. As a result, Days On Market throughout the island was up 20% over last year.
For condos, buyers were driven more by getting a starter property for themselves on the island instead of purchasing purely to achieve a positive return on their investment. That's because the short-term rental market for condos cooled off a bit this year with many would-be renters opting to explore Europe instead. Condo prices on Hilton Head were mostly flat. Larger condos with more square footage and bedrooms saw price appreciation this year. Smaller condos (less than 700 sq ft) saw more units for sale and declining average sales prices.
We have seen a steady increase in listings for sale on Hilton Head. Compared to 12 months ago, there are 25% more homes for sale and 19% more condos for sale. This increase in inventory has not yet had a negative effect on pricing. Homes have seen a 7% appreciation and condo pricing has remained flat.
Setting the initial list price has become more of a critical decision. A few years ago during our low inventory market, many sellers would price high and be pleasantly surprised by the positive response from buyers. Now, if a property is not priced correctly, it can easily be forgotten in a few weeks. Buyers checking new listings need a good reason to act. If they don’t see one, they will wait.
Breathtaking ocean views from this classic Sea Pines 5 bed/7 bath oceanfront home. Built by high-end builder Johnson-Delaney and designed by renowned architect Peter Brower, this superior quality home has been meticulously maintained and never rented. 2nd floor great room has cathedral ceilings that give plenty of natural light. Large gourmet kitchen with Viking stove. 2 fireplaces and a screened porch. Spacious primary suite with adjacent office. Elevator stops on 3 levels. 2-car garage. 2nd primary suite on first floor. Privacy is assured with landscaping surrounding pool/spa and secluded walkway to the beach.
The economy is certainly going through strange times and the Hilton Head real estate market is no exception. Here are a few of the trends we are seeing:
Market Activity
While our market mostly plateaued from late May 2022 to early January 2023, it has seen a steep increase in activity since late January. This is mostly driven by investor buyers looking to defer paying capital gains taxes on a recent sale by purchasing a move-in ready property that they can quickly rent after closing. As a result of this, prices for move-in ready homes/condos with strong rental potential have been going up again and many sellers are seeing multiple offers.
Prices are going down for unrenovated and dated properties. Also, contractor availability is starting to free up. As a result, patient investors will likely see good fix and flip opportunities.
Listing Availability
March typically begins our busiest listing season of the year, but the return of increased buying activity has dwindled the number of available homes/condos for sale. We're expecting this to change as we approach the RBC Heritage Classic.
Cost Changes
The Beaufort County tax assessor will reassess property values for 2023 taxes. This is an event that usually happens every 5 years. For property owners, it could result in their taxes increasing to reflect the jump in property values over the last 3 years. Insurance rates are also going up mostly in response to increased building costs.
Are you thinking about purchasing a property you can put on the short-term rental market? Here are some answers to the questions that we are often asked:
Where are the short-term rental areas on Hilton Head?
You may assume that all the properties you see on our site can go on the short-term rental market. However, over half of the communities on Hilton Head do not allow short-term rentals. Here are the areas where most of the short-term rentals are on the island:
While most of the listings you see in these areas do allow short-term rentals, there are some complexes and subareas (ex. Leamington residential area) that do not. It's best to check with your agent to make sure that the property you have your eye on is a safe bet.
Out of those communities, where should I focus my search?
If you want to be in a resort community with trails, a beach club, a security gate, golf access and a generally quieter area, consider the following:
For the most part, the closer you are to the beach, the better your rental income will be. However, there are a few exceptions: Homes/condos in Harbour Town with a pool do very well on the rental market. Renters like getting coffee or a bite to eat in Harbour Town and then taking the Sea Pines Trolley to the beach. Also, in Palmetto Dunes/Shelter Cove there are complexes that are almost a mile from the beach that do well on the rental market because the Dunes Buggy offers an easy shuttle to the beach.
Are you ok with your renters bringing their pets?
Charging renters a fee for their pets is sometimes a good way to increase your rental income but the damage pets can do to a property can more than offset that benefit. If you are buying a condo, many complexes do not let owners have pets and even fewer allow renters to have them. If this is an important point for you, make sure you are provided with rules for the complex to verify this.
How are short-term rentals typically managed?
You can either hire a short-term rental manager or rent it yourself using VRBO/Airbnb. While you will pay less to rent it yourself, it can be very time-consuming and your success will often depend on how fast you respond to inquiries. If you are not able to devote your time and attention to it, or prefer not to, it's best to work with a rental manager. Competition between rental management companies on Hilton Head has only increased over the years. Your agent can recommend a few companies to evaluate. It's best to start with companies that have a strong presence in the area/complex you are considering.
How many weeks out of the year are properties typically rented?
The short answer is usually around 26 weeks/year (between March-September). However, many properties have winter renters (called snowbirds) that can rent the property for weeks at a time. Some owners that have been renting for a long time have repeat renters that continue to enjoy their property every year and they will have bookings that exceed 35 weeks/year.
What is the Town of Hilton Head's Short-Term Rental Initiative?
Over the past few years, short-term rentals have been popping up in areas of Hilton Head where they were not commonly found. There were also a number of property owners renting through VRBO/Airbnb that were unresponsive if an emergency happened or their renters threw a noisy party. To address concerns like these, the town is launching an initiative to regulate short-term rentals. If the proposed initiative passes, the following changes would go into effect in 2023:
1) Short-term rental owners would need to apply to the town for a permit ($250).
2) Short-term rental managers (owners or agents) would need to be physically present to respond within an hour of notification to a complaint or some other responsive action needed.
Click here for more information on this initiative.
Did you know that a new condo complex is being built on Hilton Head? It's a 22-unit, luxury condo complex overlooking Skull Creek and the Intracoastal Waterway in the area where the Old Fort Pub used to stand in Hilton Head Plantation. This site is known for its breathtaking sunset views over the water. Each of the 22 units will have 3 beds/3 baths (2,108 sq ft) and a spacious balcony (180 sq ft) that views the water. The master bedroom and dining area will also have water views. The five-story, steel/concrete building will have covered parking, a waterfront pool, community grilling, sundecks and a firepit.
The condo fee is scheduled to be $973/month, which will include insurance, cable, internet, propane, pool maintenance, landscaping, trash collection, pest control, capital reserve and common area maintenance. The complex is expected to be finished in October 2022 but the units are for sale now. Here are the ones available.Let us know if you have any questions.
We're realtors, not contractors—and, truth be told, not even very handy. However, we've seen a lot of home inspections over the years and there are a few issues that are fairly easy to visually inspect before you get ready to make an offer.
Here they are:
Roof
There is an adage that contractors like to say: "All problems start with the roof." And, like most cliches, it's true. While there are now 30-year shingles available, 20 years is the usual lifespan for an asphalt shingle roof. Cedar shake lasts about 30 years and metal roofs can last 40-70 years. Expect the seller to know and disclose the age of the roof. Look carefully at the roof in the daylight and see if you notice any sagging, buckling or damaged shingles. If there are darkened pockmarks on the shingles, the roof may have hail damage, which could be remedied by the seller's insurance. Go into the attic and see if you see any water stains or signs of leaks on the underside of the roof. Keep in mind that some roof issues are easily fixable like leaks around a vent stack, an isolated instance of a few damaged shingles or a puncture from a fallen branch.
HVAC System
You won't find gas furnaces or boilers in the Lowcountry. Since temperatures rarely get below freezing, almost all of the HVAC systems are heat pumps. They are highly efficient for both heating and cooling and can usually last 10-14 years if regularly maintained (serviced every 6 months). Heat pumps consist of two components: an indoor air handler and an outdoor condenser. Some larger homes will have multiple heat pumps (referred to as zones). As a result, you'll want to check the dates of the heat pumps to plan for their eventual replacement and factor that into the purchase price for the house. Some labels will clearly state the manufacture date, but many will require getting the date from the serial number. Your agent will likely know how to do this. When you walk through a home, notice if there are rooms that have no venting or have large sections of the home serviced by separate mini-split units. It may be a sign that the home has not been properly climate controlled and there could be elevated levels of mold, which could require reconfiguring the entire HVAC setup. Along these lines, check the thermostats when you are at the house. If the temperatures are set to extreme levels for cost savings (i.e. over 78 in the summer) that may also contribute to a mold issue.
For most heat pumps, the 3rd and 4th digits of the serial number denote the year the unit was manufactured.
Pipes
It's important to check the year a home was built since it may reveal potential issues that were common at the time of construction. If a home was built between 1983 and 1997, there is a chance it has "the bad pipes." I'm referring to polybutylene (PB) plumbing pipes. The PB fittings of these pipes have a dramatically high failure rate and led to a class-action lawsuit. Starting in the late '80s, these pipes were used with copper fittings, which reduced the failure rate but are still a liability because chlorine is known to break down polybutylene over time. Most owners replace these pipes with PEX. Because we have mild winters, most plumbing pipes are not insulated and are easy to spot in attics or crawl spaces. If you see pipes that are dark grey and the date of construction matches the above dates, they are likely polybutylene. Another sign is if they have "PB" or "Poly-B" printed on them. Be sure to factor that into your offer and keep in mind that most homeowner insurance carriers, will not cover these pipes.
Fake Stucco
If a home you are considering has a stucco exterior and was built from the mid-1980s to the late-1990s, the exterior is likely fake stucco, which is also referred to as EIFS or synthetic stucco. If not properly installed and maintained, EIFS can be prone to water penetration, decay of the underlying plywood and even insect infestations. As a best practice, get a stucco inspection if you suspect a home exterior is EIFS. Stucco inspectors will not only confirm the type of exterior materials present, they will also use a thermal camera to identify any possible areas where there is a moisture intrusion issue that needs to be addressed. Most of the problem areas occur at the windows, doors and areas of kick-out flashing. As a quick test when you are at the house, try knocking on the stucco. If it feels hard as a brick, it's probably real hard-coat stucco. If it feels hollow like drywall, it's probably EIFS.
Flood Prevention
Hilton Head is a low-lying area and has many sections that are susceptible to flooding. As a result, it is important to confirm the flood zone and the elevation of the first-floor living space of any home that you are considering. Click here to identify a property's flood zone by address or on a map. For details on elevation, a surveyor needs to be hired to produce an elevation certificate. This is especially important in the southern areas of Hilton Head where the grade is usually 7-8 feet above sea level. The great majority of Bluffton and many areas on the north end of Hilton Head are designated as being in an "X Flood Zone," which means they have a much lower flood risk.
Most sellers in higher-risk flood zones will include an elevation certificate with their listing. Many properties on Hilton Head have elevation certificates on file with the town and are available here. There are three reasons why the elevation and flood zone matter:
Renovation Potential: If the first-floor living space has an elevation that is lower than the elevation requirement for new construction (3 feet above the base flood elevation or 13 feet above mean sea level, whichever is higher), owners are only able to get a permit in the town of Hilton Head for 49% of the assessed or appraised value of the structure. For example, if the property is worth $500,000 with $250,000 land value and $250,000 structure value, an owner is only able to get a permit for a maximum renovation value of $122,500. Thankfully, that limit is not cumulative. As a result, you can close out the first permit for the maximum renovation value when the work is done and get another as long as the living area of the home is habitable (e.g. not stipped to the studs).
Mortgage Requirement: If you are planning to get a federally insured mortgage to purchase a house in an A or V flood zone, you are required to get flood insurance.
While there are dozens of other important items to pay attention to (e.g. flooring, windows, dry rot, pool, electrical, etc), these five are easy to visually inspect and can be costly if overlooked. Thankfully, hiring a good inspector will take the pressure off of you to properly evaluate the condition and safety of a home. Ask your agent for a trusted home inspector as well as what inspections and surveys are appropriate for the home you are considering. Let us know if you have any questions.
If you are browsing properties for sale on Hilton Head and looking for something that you can't find, you'll want to know about a new listing status that has recently been added by our MLS. It's a "Coming Soon" status called "Listing Delay." Listings are in this status when the listing agreement is signed but the marketing and photography are not ready yet. These listings are only visible to realtors and the general public will not see them online.
Since we've recently had a dramatic increase in sales and most listings now spend far fewer days on the market, we have successfully helped many buyers get a head start on the competition by monitoring Listing Delays for them. Please let us know if you have a specific home, condo or lot that you are searching for. If we find a match in Listing Delay, we are happy to share the main details and go to the property to give you a virtual tour.
