Summer is usually our slowest season. Would-be buyers and sellers are either vacationing in other areas (mostly Europe these days) or busy prepping their kids for school. This summer, however, sales activity on the island was busier than normal, driven mostly by newly minted retirees looking for their “forever home.”
Demand Is High For Golf-Club Properties
Private clubs on Hilton Head have seen a big increase in demand. As of this writing, Long Cove has only 1 home for sale with 8 under contract. That's a change from a year ago when there were 19 homes on the market and 0 under contract. The surge in activity is likely due to more buyers finally deciding to make the move to Hilton Head as well as the private clubs redoing their clubhouses and amenities. Wexford and Indigo Run have both recently finished renovations to their clubhouses. The clubs are investing in these improvements partly to remain competitive with other clubs and partly to accommodate increased demand on their facilities as there has been a sizable increase in permanent residents due to many owners and buyers finally retiring.
On Hilton Head, there are 8 major private clubs. A few require property ownership within their community to join (e.g. Long Cove and Wexford). Others are optional and even allow members to live outside of the community where the club is located (e.g. Sea Pines Country Club, Golf Club at Indigo Run). The fees range from a social membership at The Country Club of Hilton Head ($250 initiation/$2,280 annual dues) to Wexford where the club membership and HOA are combined ($90,000 initiation/$23,380 annual dues).
New Price Records In Sea Pines
Oceanfront homes in Sea Pines continue to set new price records. Whereas 2 years ago the highest oceanfront sales price in Sea Pines was around $10M, we have since seen three new oceanfront homes sell between $12M-$15M. Overall, Sea Pines is still seeing impressive price appreciation -- averaging 12% annually for homes -- but it has cooled off slightly from last year. While closed sales are still high, the average number of days on the market is also high, showing that many Sea Pines buyers are waiting for the right property.
The Condo Market Is Mixed
Prices for condos are still appreciating modestly for 3 bed units and are mostly holding steady for 2 bed units. Demand is down for 1 bed units and the beachfront bargain condo market is now a buyer's market.
Fall is the beginning of our second busiest season for new listings. If you are thinking of selling your property or are in the early stages of looking for your dream property on the island, we would be happy to hear from you. Contact us.