Market remains competitive

As we move into September, the Hilton Head Island real estate market continues to show a blend of resilience and subtle shifts that are worth noting. Let’s take a closer look at how the numbers stack up compared to last month and where things stand against recent history.

The average days on market ticked upward this month to 77, compared with 73 in August. A year ago, in September 2024, properties averaged 67 days before selling, so we’re clearly trending longer. While this represents a cooling from the pace we saw during the spring and early summer, it’s still far better than the historical averages from just five years ago, when properties often lingered well over 150 days.

Inventory has tightened slightly, with 850 active listings now available, down from 887 last month. A year ago, there were 736 properties for sale, so despite the month-over-month dip, buyers still have more options today than they did last fall. However, inventory remains considerably lower than pre-pandemic levels when well over a thousand homes would typically be on the market at this time of year.

Closed sales saw a strong bump, jumping to 193 this month compared with 159 in August. That’s a 21% increase month over month and also a solid gain over the 136 closings recorded in September 2024. This rebound in sales activity is a positive sign that demand remains intact, especially for well-priced homes in desirable locations.

The list-to-sale price ratio slipped again, coming in at 94.7% compared with 95.2% in August. A year ago, sellers were averaging about 95.9% of their asking price, so while sellers remain in a strong position, buyers are negotiating a little more successfully than they did last year.

Prices, however, continue to tell the broader story. The median sale price sits at $1,154,500, up from $1,087,500 in 2024 and continuing a steady upward climb from $1,035,000 in 2023 and $925,000 in 2022. Looking further back, it’s remarkable to see how much appreciation has occurred since 2020, when the median was just $624,750.

So, what does all this mean? Hilton Head remains primarily a seller’s market, though it is clearly less frenzied than in recent years. Rising days on market, small dips in sale-to-list ratios, and an expanding pool of inventory all point toward a more balanced environment. What continues to hold the market back from stronger momentum is the mortgage rate environment. Many homeowners are still sitting on ultra-low interest rates and are unwilling to give up that advantage to move up. Buyers are willing to pay higher prices for better homes, but they are far less willing to shoulder those prices alongside loan rates that have more than doubled from pandemic lows.

As we head into fall, expect the market to remain competitive but with slightly more negotiating room for buyers than in the recent past. Sellers who price properly are still in control, while buyers who are patient and decisive can find real opportunities.

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