Hilton Head Island Real Estate Market Update – January 2025
By Dan Prud’homme
Contributor
The Hilton Head Island real estate market wrapped up 2024 with some interesting trends, and as we step into the new year, there’s plenty to talk about. Whether you’re a buyer, seller or just keeping an eye on the market, understanding where things stand right now is key. Let’s dive into the numbers and what they mean for you.
First off, average days on the market (DOM) increased to 66 this past month, up from 45 days at the same time last year. While that might seem like a big jump, let’s keep some perspective. Back in 2019, the average DOM was 128 days, and in 2020, it was 119 days. So, while properties are taking a bit longer to sell compared to last year, we’re still in a much better spot than we were just a few years ago.
Sales prices have dipped slightly. Right now, properties are selling for about 95.6% of their original asking price, compared to 97.3% last year. While that’s a bit of a drop, it’s worth noting that in 2019, the average was 94.5%. This tells us that while the market has cooled off a bit from the frenzied activity of recent years, it’s still performing better than it did pre-pandemic.
Inventory is where things get interesting. We’re currently at 731 active listings, which is up 6.6% from 686 this time last year but slightly down from the 737 we saw in November. For some perspective, five years ago, there were 1,289 properties on the market, nearly double what we have today. Inventory typically shrinks in the late fall and winter, and this year is no exception.
Closed sales came in at 116 for December, down 7.2% from 125 a year ago. With the current inventory levels and sales pace, we’re sitting at just under six months of supply. It’s still a seller’s market, but just barely. Buyers have more breathing room now.
One of the bright spots continues to be sales prices. The median year-to-date sale price has climbed 4.35% from $1,035,000 in 2023 to $1,080,000 today. That’s a testament to the ongoing demand for Hilton Head Island properties, especially from second-home buyers and investors who see the long-term value of owning a piece of paradise.
Looking ahead, all eyes are on interest rates. If rates drop below 5%, we’re likely in for a fantastic year. And if they get closer to 4%, buckle up. It could be one for the record books. Hilton Head’s real estate market often moves a little differently than the national trends because of our high concentration of second-home and investment property sales.
So, what’s the bottom line? The Hilton Head Island market held strong despite some serious headwinds in 2024, and 2025 is shaping up to be an exciting year. Whether you’re buying, selling or just curious about what’s happening, now’s a great time to get involved. Stay tuned for more updates as 2025 unfolds. Happy New Year!
Dan Prud’homme is the Visionary & Success Coach of The Prudhomme Team at William Raveis Real Estate. dan@danprudhomme.com, www.theprudhommeteam.com
