FROM WHERE WE SIT…
In just a blink of an eye, another year has come and gone, and we hope you made some great memories! While memories can be fleeting, there is one thing that isn’t, and that’s our commitment to being your trusted resource for all things real estate! As is our tradition, we are wrapping up 2023 with our annual State of the Market Report, with a recap and predictions of 2024.
2023 – WHAT WE CAN BRAG ABOUT
Hilton Head hit the highest median home sale price on record this year, with an average of $1,035,000!
- Homes that had the best market response were renovated and staged for sale. Dated homes sold as well, but at reduced prices to price-conscious buyers willing to accept the cost of an eventual upgrade.
- Homes went from being listed to sold in an average of 43 days, which is still a fast market time!
- Inventory continues to be limited; currently, we have 176 homes listed for sale.
- Demographics are favorable, as baby boomers continue to drive our market. A flood of people are moving south, away from highly taxed states. Some think our home prices are bargains. They discover Hilton Head, often by friends, and fall in love with the beauty of our area, years-round sunshine, and friendly people.
2023 – WHAT WE CAN MOAN ABOUT
- The purchase price of owning a home has dramatically increased.
- Insurance rates and tripled, especially in areas impacted by coastal storms and flooding.
- The increase in home prices has caused assessed values to go up and property taxes have risen significantly.
- Interest rates went up to 8% this year creating a pushback.
- Although many buyers pay cash, the luxury market is still sensitive to interest rates. Some people have been on hold making non-essential “around the neighborhood” moves. They don’t want to trade their 3% mortgage for a 7% one. We don’t blame them but, at some point, life changes will dictate moves, and that motivation will outweigh the trade-off. In perspective, it has been 60+ years since interest rates were at 4%. Who will wait 60 years for it to happen again?
- A glimmer of hope…2024 predictions vary, but interest rates should adjust downward, maybe to a low of 4.6% by this year.
IN A NUTSHELL…
- Looking back, the 2023 market normalized.
- Looking ahead, the 2024 market will be slow and steady.
There will be no shortage of buyers for Hilton Head with the flood of people wanting to move to our area. Uncertainty about the economy, upcoming elections, and global conflicts will continue to affect buyer confidence. Homes that are upgraded will command top dollar and those that are dated will need to adjust their price.
