Hilton Head Island Real Estate Market Update - October 2024

By Dan Prud’homme

Contributor

The Hilton Head Island real estate market continues to show some interesting trends as we enter the final quarter of 2024. With the weather cooling down and the summer rental season behind us, October presents a perfect time to take a closer look at the evolving market dynamics over the last month.

One of the key indicators to watch is the average number of days on the market. In October, properties spent an average of 68 days on the market, up from 56 days at this time last year. However, it’s important to note that before Hilton Head Island became such a hot spot during the pandemic, the average was a much higher 162 days. This recent shift suggests a return to more balanced market conditions, though still far from the pre-pandemic norm.

The percentage of the original asking price that sellers are receiving has also seen a slight dip. Currently, properties are selling for about 95.6% of their original asking price, compared to 96.8% last year. While this may seem small, the difference equates to approximately $11,000 based on the median sales price. This is something both buyers and sellers should keep in mind as negotiations become more nuanced.

Inventory levels, always a critical factor, have also seen some movement. Year over year, inventory has risen by 6%, from 667 properties to 708. Although this increase is welcome, it’s still a far cry from the 1,348 properties available five years ago. What’s more, 708 listings is relatively low for this time of year, as we typically see a surge in inventory after summer rental income has been realized.

Sales activity has cooled slightly, with 134 closed sales this month, down by 5.25% compared to the same time last year. With inventory sitting at 708 properties, this equates to just over five months of supply, which represents a slight shift from the rising inventory levels we observed throughout much of 2024.

Finally, the median sale price has dipped slightly, down 1.8% year to date from $1.1 million to $1.08 million. This decrease is more reflective of a softening in the ultra-luxury market, which often slows during election years. Second homes, especially at the top end of the market, are highly discretionary purchases, and it’s no surprise to see a bit of hesitation in this segment.

Looking ahead, buyers should pay close attention to interest rate trends. As rates are expected to decrease, competition in the market will likely intensify, making now an opportune time to buy before things heat up. It wouldn’t be surprising to see multiple-offer bidding wars return this winter and into the spring, as there is substantial pent-up demand that will be unleashed with more favorable rates. While this shift may not immediately affect the ultra-luxury segment, it’s only a matter of time before that market also takes off.  I believe we are in the proverbial “calm before the storm”.

Until next month!

Dan Prud’homme is the Visionary & Success Coach of The Prudhomme Team at William Raveis Real Estate. dan@danprudhomme.com, www.theprudhommeteam.com