Hilton Head Island real estate market update - May 2025
Hilton Head Island’s real estate market continues to evolve as we head into May 2025. While the island’s lifestyle remains as attractive as ever, the market dynamics have shifted notably over the last month, offering fresh insights for both buyers and sellers.
One of the most significant changes is the drop in average days on market. Properties are now selling in just 63 days, a sharp 22% decrease from 81 days last month and a notable improvement from 70 days at this time last year. This faster pace signals continued demand, even as broader market conditions shift. Meanwhile, sellers are achieving 95.4% of their original asking price on average, a slight dip from 96.1% a year ago but still a strong showing.
Inventory on Hilton Head Island has expanded considerably. The number of available properties has jumped 25% year over year, from 721 listings in May 2024 to 901 today. New listing activity has picked up pace, giving buyers more choices than they’ve had in recent memory. At the same time, closed sales have slowed slightly. There were 164 closed transactions this past month, down 9.9% from 182 at this point last year.
The supply of homes currently stands at six and a half months, unchanged from last month. This level of inventory marks a transition point — with anything above six months typically indicating a shift toward a buyer’s market. While the numbers suggest we’re right on the edge, individual property types and price points are starting to show more pronounced buyer-favorable trends.
One of the bright spots in the data is the increase in median sale price. Year to date, Hilton Head Island’s median home price has risen to $1,200,000, up 10.4% from $1,087,500 in 2024. Some of this gain can be attributed to renewed activity in the luxury segment. While a few high-end sales don’t create a lasting trend on their own, the momentum is encouraging and could set the tone for the upcoming summer season.
Wider economic conditions continue to play a role. Tariffs and persistently higher interest rates have led to some buyer hesitation, especially among those needing to stretch their budgets. The rapid growth in inventory over the past 60 days has accelerated the market’s slow drift toward buyer territory. How much further that shift goes may depend heavily on policy developments coming out of Washington, D.C., in the months ahead.
Dan Prud’homme is the Visionary & Success Coach of The Prud’homme Team at William Raveis Real Estate. dan@danprudhomme.com theprudhommeteam.com
