Hilton Head/Bluffton Real Estate Market Update | 2nd Quarter 2021
As we have now crested into the second half of 2021, it’s exciting to be able to report on our market’s status through Q2.
The second quarter was marked with a continuation of strong buyer demand amid low inventory, yielding one of the most notable statistics we’ve seen in our market in the last month of the quarter:
The average sales-price-to-list-price ratio for June closings was over 100% (100.2%, to be exact).
This demonstrates that multiple offers, serious buyers, and consumer confidence combined to yield strong contracts with properties selling, on average, OVER the listing price for properties closed in the month of June!
Despite this impressive statistic, Q2 also brought about signs of cooling in the nationwide market based on various sources we track. And, anecdotally, we are hearing from our peers in a variety of markets across the country that inventory is building up slightly, while the fevered pitch of panic-buying seems to be settling down.
LOCAL SUPPLY AND DEMAND
Locally, we have been tracking the relationship between new listings and new sales each month dating back to the beginning of 2019, and the graph below shows where these trend lines have crossed, demonstrating a shift in market conditions. Specifically, in May 2020, we saw the number of new sales exceed the number of new listings, which led to the eventual shortage of overall inventory that framed the subsequent seller’s market.
Since then, in April of this year, these supply and demand lines crossed once again, and we are tracking with great interest how these trends will continue into Q3.
LOCAL INVENTORY LEVELS
When we graph just the supply of homes available for sale on Hilton Head on a monthly snapshot since May 2020, it’s interesting to note that April 2021 seems to have marked a possible bottom. May and June showed progressive increases in inventory levels, but July showed another step-down. So, again, this is something we are monitoring closely as the market is certainly eager for a larger number of choices of properties to feed the substantial supply of buyers still interested in buying a piece of the Lowcountry.
With the limited supply of resale properties – combined with the allure of owning something turnkey and new – Q2 showed another strong quarter of new-development sales in the Lowcountry. In fact, at Collins Group Realty, approximately 40% of our current pending buyer sales are positioned in new-developments projects located predominantly on the mainland.
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With schools and many businesses getting back into physical-space operation mode this coming Fall, we have seen a flood of families re-locating this Summer in preparation for settling into the new school year in the Lowcountry. Meanwhile, the vacation season on HHI is extremely robust, and the roadways, waterways, and airports are quite busy. Restaurants are experiencing exceptional demand in our area, and the overall economic engine seems to be running at full speed.
In the 3rd quarter, we expect strong buyer demand to continue, while we anticipate an increase in overall available listings in the market area. Interest rates should remain attractive and stable, and the overall market should remain steady well into the Fall.
If you’d like more stats, head over to the June 2021 Market Report