Hilton Head Real Estate Market Reflection – September 2023


We are at the end of summer, especially from the tourism standpoint, and our island should start to slow down with kids up north going back to school after Labor Day. It will be a nice change getting into our favorite restaurants, enjoying less crowded beaches, a little less traffic on our island and especially the cooler weather.

From our real estate perspective, the number of sales since the start of the year are down 18-20%. This is due to a combination of the lack of inventory and higher interest rates. Home prices have remained at record highs. Our average sales price verses asking price has dropped 3-5%, showing Sellers are becoming more negotiable, and our average days on market has increased, which are both signs of a market in transition. It will be interesting to see if the FED will continue with rate increases. We are watching the market closely.

You should have received your 2023 tax reassessment notice in the mail. It’s important to know that your “Capped Value” in the notice is the number used to calculate your property’s taxable value for the next 5 years, not the “Assessed Value”. Assessment ratio indicates whether your property is primary use (4%) or (6%) .  Using the tax calculator found on the Beaufort County website incorporates the millage for your area and allows you to calculate your tax. There will be a statutory rollback of millage so we anticipate that millage will decrease by 6-8%, and actual 2023 tax bills will be less than the projection provided by the tax calculator which uses 2022 millage rates. Please call us should you have any questions!

Thinking of trading up, trading down, or just moving around town? Now more than ever, you need experienced agents like Herman & Davis to help you navigate the changing landscape! Whether you are buying, selling, or both, it’s never too early to meet with us. We are always happy to sit down with you to discuss, strategize, and develop a plan that will meet your goals.