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Real Estate Market Insights for Hilton Head Island


Cortni Dietz

Real Estate Market Insights for Hilton Head Island

Hilton Head Island is nestled among the palm trees on the coast in the charming Lowcountry of South Carolina, offering a fabulous selection of first-class amenities and emphasis on family enjoyment. As a popular destination for the real estate market, with increases in median sale price (+17% to $890,000 YTD as of May 2022*) and decreases in days on market until sale (-23% to 80 days YTD as of May 2022*), it’s now more important than ever to make sure you have a trusted and experienced real estate partner by your side.

And whether you’re interested in purchasing or selling a vacation home on Hilton Head Island or leasing your property to generate income—we have the insight you need. Inspirato Real Estate recently had the chance to pick the brain of area expert, Phil Schembra, Owner and Broker-In-Charge of Schembra Real Estate Group, to get some insider information on this red-hot real estate market.

Please read the Q&A below to discover why it is an opportune time to purchase a property on Hilton Head Island and what you may expect through the remainder of 2022.

What do you appreciate most about the Hilton Head Island area?

The quality of life and natural beauty that Hilton Head Island is known for throughout the world, which is largely a product of the special emphasis on the controlled land planning and environment. But most of all it is the people that are attracted to our Island; the diversity of the residents and guests who visit the Island and fall in love with it.

What are some of the main drivers for prospective buyers on Hilton Head Island?

Both residents and second home buyers are attracted to the Island because of our quality of life, world-famous reputation, emphasis on our history, the arts, the philanthropic endeavors and much more. With the Hilton Head Island Airport and the Savannah/Hilton Head International Airport conveniently at our fingertips, there is easy access to our Island. 

How would you describe the style of home and architecture on Hilton Head Island?

Charles Fraser, the early pioneer on the Island, had the concept of developing the Island while protecting its natural beauty and vegetation. Today, these stringent guidelines continue as The Town of Hilton Head Island implements building codes that are reinforced throughout the Island. In private communities, the architecture is thoughtfully chosen and approved by the Property Owners Associations (POA).  

What trends are you seeing in the Hilton Head Island real estate market so far in 2022?

We are experiencing an influx of potential buyers that are placing more emphasis on purchasing property to enjoy now for family enjoyment and less emphasis on the investment aspect. This trend has been evident since the early days of the pandemic as buyers are searching for communities that offer a superior quality of life for their families.  

What should potential home buyers expect through the remainder of 2022?

For the remainder of 2022, homebuyers should expect that prices on Hilton Head Island will continue to rise, although not at the dramatic pace that we have experienced during the past two years. Inventory will remain at low levels as sellers have limited opportunities to either invest in a new property or switch to other markets.

Why is it still a good time to make a vacation home purchase on Hilton Head Island, even with interest rates increasing?

The timing continues to be the perfect opportunity to purchase on Hilton Head Island. Although prices have escalated over the past several years, our prices remain commensurate to other world-class oceanfront residential resort communities.

Another key factor to understand is that a large amount of our owners purchase property not only as a solid real estate investment, but for family enjoyment. As a resale community with content owners, we will never have enough inventory to meet the demand. With the shortage of inventory, our market will remain stable with capital appreciation still available despite the increase in interest rates, which are still at historic lows.

Can you share a recent success story with us?

We have so many interesting stories, but in May 2022, I sold an oceanfront home in Palmetto Dunes. The owner and I ultimately decided to list the home for $5,995,000, furnished. I placed the home on the market and on that same day, we received four offers: three were all-cash, and all were sight unseen. After several rounds of negotiating, the final selling price was an all-cash offer of $6.6 million furnished. 

All these offers transpired in one business day, with four families vying to purchase the home, having never seen the property. This purchase, along with so many others, was driven by the emphasis on our quality of life and their desire to be a part of our extraordinary community. 

Are you ready to jump in and get started with your vacation home search on Hilton Head Island? Get started here. Inspirato Real Estate can help you find your dream home or investment property, then connect you to a local real estate professional, like Phil Schembra, to assist with your purchase, and lastly, Inspirato can lease your property from you with benefits that make ownership easy.

*Market data provided by Phil Schembra, Owner | Broker-In-Charge of Schembra Real Estate Group

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