Hilton Head Real Estate Market Explodes, Sets All-Time Record

Posted by Rick Turner on Monday, January 27th, 2014 at 2:27pm.

The Hilton Head Island real estate market virtually exploded in 2013! While the national real estate market has been turning upward, our local area market has set an ALL-TIME RECORD!

For the last 10 years home sales in the Hilton Head real estate market have averaged 1,976 homes per year, according to Hilton Head Area Multiple Listing Service (MLS) statistics. In 2013, an extraordinary 2,730 homes were sold. This is an unbelievable increase of 38 percent! In fact, this breaks the previous record set in 2005 by 99 homes. See chart below.
 
Number of homes sold per year since 1997*
*MLS statistics not available prior to 1997. 
2013 - Most Sales Ever!
This historic pace of home sales is significantly better than the national rate. According to the National Association of REALTORS®, national home sales for 2013 were at a seven-year high, but not close to the record set in 2005. The fact that the Hilton Head area market has set an all-time record demonstrates just how desirable this "little corner of the world" really is. 
 
One of the contributing factors to this area's success is the massive generation of Baby Boomers now stampeding into their retirement years. According to one national survey, the Carolina's are their first choice for where they would like to move to, even above Florida. Considering the impact of the Boomers and the increasing sales and prices, all signs point to continued success in 2014.
 

Median Home Price is Rising 

The rate of home sales was not the only encouraging statistic in the Hilton Head area real estate market last year. The median price of homes sold in 2013 rose to $285,000, the highest in four years. While the median price has increased 14 percent since the "bottom" a year ago, prices are still historically low. In fact, the median sale price is still nearly 28% below the peak of $395,000 set in the beginning of 2007.

Now is an ideal time to purchase property in the Hilton Head area. Trends seen in the local and national markets indicate that with the increase in sales and prices, along with the decrease in inventory, these low prices will not stay low for long.Homes purchased now are highly likely to increase in value in the coming years.

Interest Rates are Still Practically Too Good to be True

According to Freddie Mac, mortgage interest rates in 2013 were the second lowest rates in the last 42 years! The average rate for a 30 year, fixed-rate mortgage was only 4.33%. You can see additional changes in mortgage rates over the past 33 years in the graph below. The combination of rising home values, increased sales, and low interest rates are continuing to fuel what is an already amazing market nationally and in the Hilton Head area. 
Annual average-commitment rate on 30 year fixed mortgages. Chart shows 1981 - 2013

Hilton Head Real Estate Expert

If you were waiting for just the right time to buy and catch prices on the upswing, then now is your moment! Log onto the best real estate search engine in the area, HiltonHeadRealEstateSearch.com, and select some properties of interest. Then contact us with your questions or to schedule an appointment. We will look back a year or two from now and realize this winter was an incredible time to buy real estate: low, low interest rates and rock-bottom, but rising, prices!

Rick

Rick Turner has been one of the top Realtors in the Hilton Head Island-Bluffton-Beaufort area for over 30 years. He loves being involved in community activities and spending time with his lovely wife. In his free time his wife and he thoroughly relish spending time with their children and grandchildren.  

Rick Turner

Turner/Rudd Team

Engel & Volkers Hilton Head Island - Bluffton 

Mobile: 843-816-0796

E-mail: Rick.Turner@evusa.com

Website: www.turnerruddteam.evusa.com

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