Hilton Head, SC real estate market will go insane in 2021

0
43

[ad_1]

Buyers buying over $ 500,000 worth of homes is a sight to behold. High-stakes betting wars. Reducing the number of homes for sale by 75%.

Welcome to the Hilton Head Island real estate market. 2021 is crazy.

The Island Packet and the Beaufort Gazette spoke to local real estate agents. over a year ago on the rise in home sales following the first spike in COVID-19 cases in South Carolina.

What has changed since then?

“This is insane,” said Leah Smith, a junior broker at RE / MAX Island Realty

The Hilton Head Market is red-hot. People from all over the country are flocking south, according to real estate agents. The taxes are lower here, it’s beautiful, and the pandemic has changed the culture of work, and more residents can attend virtual meetings, according to agents.

“It’s:“ Honey, why wait? Let’s do it. Honey, we can work from anywhere. Let’s do it, ”said Smith, who has had $ 13 million worth of closed or unfinished sales since Jan. 1.

The market is currently changing the demographics of Hilton Head, Smith said.

Rather than buying vacation homes, more people are moving to the island permanently, say Smith and Robert “Elk” Reenie, head broker for RE / MAX Island Realty.

“We have a very long line of people trying to come here,” Reenie said. “This is not a bubble ’05, ’06. This is migration throughout our country in 2020-2021 ”.

Data exploration

The median sale price of detached homes on Hilton Head last month was $ 775,000. According to the Multiple Listing Service, this is 40.9% higher than the average price of $ 550,000 in May 2020.

However, gated sales of detached homes are still up 64.9% this year compared to gated sales on the island between January and late May 2020, according to MLS data. market report from the Hilton Head Area Association of Realtors. (That’s 399 sales in 2020 to 658 sales in 2021.)

In the meantime, stocks continued to decline rapidly. The number of detached homes for sale fell 75.3% year over year last month, according to the MLS.

Similar trends have been reported for condominiums and villas.

“As the weather gets warmer and pandemic restrictions ease across much of the country, the US housing market shows little sign of a cold snap. Strong consumer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows, ”the local report said.

Andy Twisdale, realtor at Charter One Realty, citing MLS data, 647 homes on the island were put up for sale in March 2020.

By comparison, there were only 117 homes on the market as of Thursday, he said.

This is an 81.9% drop in inventories, Smith said, ultimately driving prices up, inspiring sellers, and sparking wars between tenders, with some properties getting five bids at once and then making contact throughout the day.

Smith said in an interview on Wednesday that she has lost three bidding wars in the past 10 days.

“If your customers don’t pay in cash and aren’t willing to give up the contingencies associated with evaluation and validation, they probably won’t win. So they’re all in line for the next one, ”Smith said.

“Every time I look at a new property coming to the market and at a new price, it seems to me that it has gone up by $ 100,000, willy-nilly, just because of this,” she said. “This is ridiculous”.

There is strong demand for homes on the island, Twisdale said.

There were only 26 houses on the list. Sea pines on Thursday, he said. Only four of them were less than a million dollars. RE / MAX Island Realty’s Reenie added that Shipyard saw a shortage of affordable homes. Hilton Head plantation, also.

Homes between $ 500,000 and $ 800,000 are no longer found in Long Cove Club as well as WexfordReenie said.

“You think about these numbers, it’s amazing,” Twisdale said. “It’s all about supply and demand. People don’t have move to Hilton Head. They are want move here. ”

Hilton Head beaches
Sunrise at Folly Field Beach in Hilton Head Island in May 2020. Lana Ferguson Photos of employees

‘It’s pretty hard’

The market is encouraging more potential buyers to make cash offers, Reeney said.

“It’s quite difficult for a novice buyer,” he said. “We have a lot more people who have a lot more money. And not only do they pay in cash, investing big money, they buy in high dollar communities. “

Some buyers, Reenie added, are offering $ 2 million for properties worth $ 1.8 million or buying homes that are invisible after the FaceTime show.

Was wave of people estate agents say they are moving to Hilton Head from various states in the country, including New York, New Jersey, Connecticut, Illinois, Ohio and North Carolina.

Some of these shoppers used to vacation and enjoy the island, Twisdale said.

Where do we go from here?

It is unclear when the supercharged seller market will end.

“They’re going to cry at some point, Uncle,” Smith said of potential buyers. “They will stay at home longer. … Whether it’s six months or six years, only then will the buyers tell us it’s over. “

Reenie believes local trends will continue for another two to three years, he said. “I don’t think it will stop anytime soon.”

Reenie said one of his agents recently put up a three-bedroom villa for sale for $ 540,000. Received 17 offers.

“Until we see more inventory, this will be a seller’s market,” Twisdale said.

18FGyM.So.9.jpeg
A line of cars descend across the J. Wilton Graves Bridge to Hilton Head Island in 2015. Memorial Day weekend marks the start of the summer family vacation season. Jay Carr

Sam Ogozalek is a reporter for The Island Packet covering COVID-19 recovery efforts. He is also a member of the Report for America corps. He recently graduated from Syracuse University and has written articles for the Tampa Bay Times, Buffalo News and Naples Daily News.



[ad_2]

Source link