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Hilton Head Luxury Real Estate Update

In the Hilton Head Island Luxury Market (over $2m), statistics show there were half as many sales in the second half of the year than in the first half. However, there were 35% fewer new luxury listings that came on the market in the second half of the year. The net effect was an increase in inventory.

More of a Lull Than a Crash

Despite the recent decline in # of transactions, there are no critical signs of distress in the luxury market. Low inventory contains the ability for buyers to lowball, home values remain fairly stable, and many homeowners are keeping their low-interest rates. The affluent are content to look beyond the short-term turbulence and focus on future opportunities instead. Although prices have fallen modestly during the last four to five months, they are still at near-record levels across North America.

Re-evaluating Expectations

All markets tend to be cyclical, but the major difference in this one was how swiftly this change occurred, as the impact of a weakening economy took its toll on the luxury market. The rush is over, as is the likelihood of fast investment returns and unchecked frenzy of selling and buying of luxury homes. That being said, the last few years have left their legacy on the luxury market and it has a growing influence. This increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, although that demand will return to a more sustainable level.

With interest rates trending upward Americans have seen their monthly payments increase, thus leading to the return of Adjustable Rate Mortgages.

The average 30 year fixed interest rate is currently at 5.37% with 0.67 in points for a conventional loan (loan size $647,200 or less) with a 20% down payment. A large contrast from the average of 3.17% a year ago.

Given the significant and quick rate increase this year people have started to inquire about adjustable rate mortgages in an attempt to keep their monthly payments in check. The 3^rd week of April saw 9% of loan applications written as adjustable rate mortgages, which is double of where it was just 3 months ago.

The housing crisis between 2007 and 2009 left a negative stigma around adjustable rate mortgages, though when used properly can be very beneficial and cost effective, but to ensure it is the correct mortgage choice there are a few questions one should ask themselves.

• How long do I anticipate on holding this mortgage?

Adjustable Rate Mortgages come with a fixed rate component for a period of time followed by a number that indicates how often the rate can adjust. For example a 5/6 month ARM implies that the interest rate will be fixed for the first 5 years and then has the ability to adjust every 6 months after the initial five year period. If you only plan on owning the home for 4 years then a 5/6 month ARM would be a good choice. Adjustable Rate Mortgages also most commonly come with 7 or 10 year fixed portions. 

• How much money are you able to save by utilizing an adjustable rate vs fixed rate

On a $647,200 loan, comparing today’s 30 Year Fixed Rate 5.37% vs a 7/6 month ARM rate of 4.5%  one would see the following:

This chart shows a $343 monthly savings by utilizing the Adjustable Rate Mortgage. If we take this $343 and multiply it by 72 months (number of months until the ARM adjusts) one would save $24,696 in the first 7 years. No refinance is going to cost this much.

With interest rates continuing and inflation trending upward one way to reduce your monthly output is an adjustable rate mortgage. These programs are not for everyone and a level of due diligence as well as understanding is essential, but understood and handled properly can be an advantageous tool to borrower money more cost effectively. 

Need a moving house checklist? Here’s a step-by-step guide to moving smoothly.

Moving to a new home? Congratulations! Now the real work begins— it’s time to prepare for your move. Moving can be stressful. Follow the steps below to stay organized and reduce stress. One simple step at a time— you can do this!

8 Weeks Before Moving Day

Begin to research moving companies. Go online— browse websites and read reviews. Reach out to anyone who has recently moved to help you make the right choice. In Hilton Head Island we highly recommend Hilton Head Moving and Storage. Call 843-837-2255 and ask for Peter or James!

Start sorting through your belongings and decide what you will keep, discard, or donate. Many local non-profit organizations, such as Church Mouse Thrift, on Hilton Head Island, will pick up unwanted furniture at no charge (chairs, tables, lamps, etc.).

Notify your children’s school and get a copy of their records. Contact the new school for enrollment.

6 Weeks Before Moving Day

Make a trip to the store to buy supplies. You will need boxes, markers, tape, and bubble wrap. STAPLES is a one-stop-shop for moving supplies!

Contact your local doctors to get copies of your family’s medical records if you are making a long-distance move.

4 Weeks Before Moving Day

Remember that moving company your neighbor was raving about? It’s time to give them a call and secure your moving truck and crew.

Start packing items that you can do without for a month.

Contact your homeowner’s insurance company to notify them of your move and get quotes for your new residence.

Visit your local post office and fill out a change of address form, or do it online here.

2 Weeks Before Moving Day

Notify current utility companies of your move and contact new ones to schedule service to begin at your new residence.

Plan to use up most of the food in your kitchen. If you have any left over food on moving day, donate to The Deep Well Project.

Notify important parties such as friends, family, bank, subscription services, employer, etc.

Keep packing!

1 Week Before Moving Day

Confirm the date and time with your moving company.

Pack, pack, pack—the countdown is on!

1 Day Before Moving Day

Keep important documents related to your move on hand.

Pack up those last minute items that you have been using.

Gather all property keys for the new owner: door, mailbox, garage door opener, etc. Deliver to your landlord, Realtor or closing attorney.

Get lots of rest— tomorrow is the big day!

Moving Day

Help your movers identify fragile and large items before they begin.

Stay present to make sure all items are removed from the house.

Arrive at your new home before the movers, if possible. Check to see if any boxes are damaged and double check the moving truck to make sure all of your belongings are accounted for.

Liked our moving house checklist? Here are our other posts you might enjoy.

Looking for pet-friendly restaurants on Hilton Head Island? Here are the top places eat with your beloved pup.

People are often surprised when we tell them that dogs are allowed on the beaches of Hilton Head.  Dogs are allowed all the time with the exception from Memorial Day to Labor Day from 10am-5pm (when it is just too hot, we don’t want them to have heat strokes).  It is really in the dogs’ best interest.

If you can’t stand to be without your furry friend when eating out, you are in luck.  Due to our fantastic weather in Hilton Head and Bluffton, SC, we have several restaurants with outdoor seating.

Our List of Pet-Friendly Restaurants on Hilton Head Island

▪  Bistro 17, 17D Harbourside Ln, Shelter Cove Harbor, Hilton Head Island

▪  Black Marlin Bayside Grill, 86 Helsman Way, Suite 103, Hilton Head Island

▪  British Open Pub, 1000 William Hilton Pkwy D3, Hilton Head Island

▪  Butcher’s Market And Deli, 102 Buckwalter Pkwy #3G, Bluffton

▪  Captain Woody’s, 6 Target Rd, Hilton Head Island

▪  Charbar Company, 33 Office Park Rd #213, Hilton Head Island (treats available for canine visitors)

▪  Cheap Seats Tavern 2, 142 Burnt Church Rd #A, Bluffton (dogs must be leashed)

▪  Cinco Mexican Grill, 102 Buckwalter Pkwy, Bluffton

▪  Corner Perk, 1297 May River Rd, Bluffton

▪  The Cottage, 38 Calhoun St, Bluffton

▪  The Crazy Crab, 104 William Hilton Pkwy, Hilton Head Island (dogs only allowed at high-top tables)

▪  Fat Patties, 207 Bluffton Rd, Bluffton

▪  Fishcamp on Broad Creek, 11 Simmons Rd, Hilton Head Island

▪  Flatbread Grill and Bar, 2 N Forest Beach Dr, Hilton Head Island

▪  Frankie Bones, 1301 Main St, Hilton Head Island (dogs must be leashed)

▪  The French Bakery, 28 Shelter Cove Ln, Hilton Head Island

▪  Frosty Frog Cafe, 1 N Forest Beach, Hilton Head Island

▪  Giuseppi’s, 25 Bluffton Rd #601, Bluffton (dogs must be leashed)

▪  Holy Tequila! 33 Office Park Rd, Hilton Head Island (treats available for canine visitors)

▪  Hudson’s Seafood House on the Docks, 1 Hudson Rd, Hilton Head Island

▪  It’s Greek to Me, 11 Lagoon Rd, Hilton Head Island

▪  Jane Bistro & Bar, 28 Shelter Cove Ln #109, Hilton Head Island

▪  The Juice Hive, 14 Johnston Way, Bluffton

▪  Katie O’Donald’s, 1008 Fording Island Rd B, Bluffton

▪  Local Pie, 15 State Of Mind St, Bluffton

▪  Local Pie, 55 New Orleans Rd #106, Hilton Head Island

▪  Lucky Rooster Kitchen + Bar, 841 William Hilton Pkwy, Hilton Head Island

▪  Main Street Cafe & Pub, 1411 Main St, Hilton Head Island

▪  Marley’s Island Grille, 35 Office Park Rd, Hilton Head Island

▪  Mellow Mushroom, 33 Office Park Rd #4, Hilton Head Island (dogs must be leashed)

▪  Mickey’s Pub and Grill, 435 William Hilton Pkwy, Hilton Head Island

▪  New York City Pizza Bar Restaurant, 45 Pembroke Dr, Hilton Head Island

▪  Nick’s Steak and Seafood, 9 Park Ln, Hilton Head Island (seating only available outside until about 3 p.m. in the summer)

▪  Okatie Ale House, 25 William Pope Dr, Bluffton

▪  Old Fort Pub, 65 Skull Creek Dr, Hilton Head Island

▪  Old Oyster Factory, 101 Marshland Rd, Hilton Head Island

▪  Old Town Dispensary, 15 Captains Cove Rd, Bluffton

▪  One Hot Mama’s, 7A Greenwood Dr, Hilton Head Island

▪  The Quarterdeck Waterfront Dining, 160 Lighthouse Rd, Hilton Head Island

▪  Reilley’s Grill and Bar, 7D Greenwood Dr, Hilton Head Island

▪  Red Fish, 8 Archer Rd, Hilton Head Island

▪  Relish Cafe, 33 Office Park Rd #216, Hilton Head Island

▪  Rock Fish Seafood and Steak at Bomboras, 101 A/B Pope Ave, Hilton Head Island

▪  San Miguel’s Mexican Cafe, 9 Harbourside Ln, Hilton Head Island

▪  Scott’s Fish Market Restaurant, 17 Harbourside Ln, Hilton Head Island

▪  Signe’s Bakery & Cafe, 93 Arrow Rd, Hilton Head Island

▪  Skillets Cafe & Grill, 1 N Forest Dr, Coligny Plaza, Hilton Head Island

▪  Skull Creek Boathouse, 397 Squire Pope Rd, Hilton Head Island

▪  Southern Barrel Brewing Co., 375 Buckwalter Pl Blvd, Bluffton

▪  Street Meet The American Tavern, 95 Mathews Dr, Port Royal Plaza, Hilton Head Island

▪  Up the Creek Pub & Grill, 18 Simmons Rd, Hilton Head Island

▪  Walnuts Cafe, 70 Pennington Dr #20, Bluffton

▪  Watusi, 71 Pope Ave, Hilton Head Island

▪  WiseGuys, 1513 Main St, Hilton Head Island

▪  World of Beer, 30 Shelter Cove Ln #140, Hilton Head Island

If you are looking for “off leash” dog parks, we have a couple of great options on Hilton Head and Bluffton.  In Hilton Head, go to the Chaplin Community Park.  The great thing about this park is that you are very close to the beach so after your puppy dog releases all their energy running around, you can take a leisurely walk on our beautiful beach. Go to this link for more information about the Hilton Head dog park.

If you are staying in Bluffton, you and your dog will enjoy the newly completed dog park at Oscar Frazier Park. Check out their facebook page.

Hilton Head and Bluffton are very dog-friendly communities so if you are visiting or thinking about moving here, please know that your furry friends are welcome most everywhere!  At Herman & Davis Properties, we are always happy to meet new fur parents.  Stop by our office anytime for information on HHI Living and pick up a few doggo biscuits for your fur baby!

Dear Hilton Head Friends and Community,

We need your help with Hurricane Relief Efforts for Tallahassee, Blountstown and beyond.

We are gathering supplies for those affected by Hurricane Michael and will deliver them per Red Cross’ instructions via our Florida Red Cross Board member, Tom Derzypolski.  Please help us collect the following supplies for these incredible small towns across this devasted region. Drop off sites are listed below.

We will be taking the trucks to Florida on Monday, October  22^nd.

SUPPLIES:

Water

Paper products, i.e., towels, toilet paper, tissues

Hand sanitizers

Wipes for elderly

Baby products, i.e., diapers, wipes, formula (liquid if possible), stage 2,3 jar food

Children’s snacks/snack packets

Pediatric Pedialyte

Kids clean underwear

Towels and wash clothes

Blankets, pillows, sleeping bags

Gloves – cloth and plastic

Bug spray

Cleaning products

Bleach

Flashlights and batteries – C, D and triple AAA

Charcoal, lighter fluid

Propane

HILTON HEAD ISLAND:

1. Herman & Davis Properties – 5 Park Lane
2. Dunes Marketing Group – Palmetto Dunes entrance
3. Alliance Roofing – 132 Island Drive (Corner of Matthews and Island Drive)
4. The UPS Store – 33 A Office Park Road, Park Plaza Shopping Center
5. Smooth Juice Bar – 11 Palmetto Bay Road, Suite 107A (next to Starbucks and Five Guys

BLUFFTON:

1. Town Square Realty – Okatie Village Center (Beside Food Lion & behind Mi Territa Restaurant)
2. The UPS Store – 20 Towne Drive, Belfair Village

In an effort to better communicate with you as a homeowner and potential seller Herman & Davis properties will be sharing Market Report letters through this blog. We are kicking this initiative off with Sea Pines Plantation at Club Course for May 2018! Stay tuned for more letters in the coming weeks and let us know if you want more information about an area that you do not see!