Hilton_Head_Property_Values_2013Hilton Head buyers that are agonizing over a 1% counter offer from the seller are missing the point and usually the property in today’s market.  It is easy to understand why a buyer stays put on their offer in a declining market, but that option is going, going, gone.  Just look at Zillow pricing for Hilton Head over the last year.  It shows an improvement of almost 10%.  A buyer that gets sticker shock in an improving market, just may have to wait for the next recession to buy a home.

Indicators showing real estate market improvement on Hilton Head Island:

  • Number of Buyers.  Hilton Head has about 10% more buyers this year over last year.
  • Still Affordable.  Home prices are still relatively affordable by local standards, encouraging continued activity(average price is up 10% over last year).
  • Favorable Tax Consequences.  Second home tax write offs, 1031 tax deferred exchanges and capital gain treatment are all still available.
  • Supply is lower.  Inventory is down about 15% over last year.
  • Faster Sales.  Properties are selling 7% faster over last year.
  • New Construction.  New construction is increasing around the Island and in new developments.  These new properties are selling quickly.
  • Properties are worth More.  Sellers are getting more with prices up 7% YTD and 10% over this time last year on Hilton Head.
  • Demographic Factors – Baby boomers are buying for future retirement or second home on Hilton Head.
  • Mortgage Availability – Interest rates are still at relatively all time lows.
  • Confidence in the market – Hilton Head buyers are confident and concerned about losing this window of opportunity!

What should prospective Hilton Head buyers do?

Reviewing the indicators above, Hilton Head real estate buyers need to adapt to these changes in order to go to contract.  The days of not budging, moving slow, waiting for a lower price, waiting for a better property, not compromising or wanting a better interest rate is all coming to an end.  Our advise, don’t just stick your toe in to see what it is like, go ahead and jump.  The temperature for Hilton Head buyers is just right!   Start your search today!