We're thrilled to report the real estate market on Hilton Head Island experienced a spectacular year in 2020. The national trend of folks pursuing a higher quality of life with access to nature and outdoor activities, coupled with the ability to work from anywhere, has produced the 2nd busiest year on record for home and villa sales on the Island. And as the year progressed, and inventory levels dwindled to record lows, the Island's pricing malaise of the last several years was finally broken.
Home sales on Hilton Head Island rocketed up 46.8% from the previous year and the median sales price increased 11.8% to $625,000. The strength of the market came from buyers putting a premium on the need for extra living space, both indoors and out. A total of 1,569 homes were sold on the Island in 2020 beating the previous record of 1,358 sold in 2005.
Villa sales from around the Island increased 16.9% year-over-year and the median sales price rose 20.6% to $302,500. It was the third busiest year for villa sales with 1,396 sold but well below the 2005 record of 1,924.
Home sales in Sea Pines were particularly hot in 2020 with a 60% increase in transactions over the previous year. The median sales price rose 21.9% to $853,000. The oceanfront market had a record breaking year with 22 homes exchanging ownership. Of the approximately 3,839 homes in Sea Pines, 49 were listed for sale at the beginning of 2021.
The villa market in Sea Pines was fairly quiet during the first half of the year. Most of the activity occurred from midsummer on with sales posting an impressive 32.4% gain in 2020. The median sales price increased 7.8% to $450,000. At the beginning of 2021, there were 21 villas listed for sale out of approximately 2,042 in the community.
For a comprehensive review of the Hilton Head Island MLS 2020 sales data, broken down by various communities both on and off the island, please click on the links below:
Hilton Head Island Continues to Represent Great Value
Even with last year's success, our local real estate market remains a value proposition to buyers when compared to the rest of the country. The S&P CoreLogic Case-Shiller US National Price Index for homes is now 25.48% above it's 2006 index value. As for Hilton Head Island, we remain 17.1% below our peak median price of $732,500 set in 2006.
The Beaches of Hilton Head Island Garner New Award
Great news, you don't need a passport to visit or live on one of the world's best rated island beaches. Conde Nast Traveler's has tallied the votes of its readers and announced the beaches of Hilton Head Island to be among the best in the world! To see who's on the list and where the Island is ranked, please click: "The 25 Best Island Beaches in the World: 2020 Readers' Choice Awards."
It's a New Real Estate Market on Hilton Head Island
There was a flurry of activity in the market last year and it reminded us of the go-go days of 2004-2005. The key difference between that market and this one is buyer motivations. In the go-go days, it was an investor market and flipping properties for a quick buck was all the rage.
Today's buyers are in search of a place where they and their families feel safe, secure and they can spread out.And, they're giving off signals to hunkering down and embracing this new lifestyle.
If you're giving consideration to selling your property, you're hard pressed to find better time than now. We look forward to sharing our insights with you on how to capitalize the most in this selling environment.
With limited inventory, it's certainly more of a challenge for buyers these days. You'll be pleased to know the type of inventory you're looking for is always coming to the market. Being prepared to take advantage of those opportunities when they arise requires preparation and focus. To that end, we're delighted to educate you on our local market, to explore all of the real estate options available to you, and to assist you with your due diligence needs.
We look forward to providing you with the expertise and service you need to achieve your real estate goals in 2021!
Thanks for your referrals and enjoy your winter,
THE LOVE FAMILY