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.
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