Real estate market analysis: Last year’s results and trends to watch in 2025

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The Hilton Head/Bluffton real estate market showcased resilience and steady growth in 2024, standing out as a bright spot amid fluctuating trends in other parts of the country. While many markets saw significant declines in demand and sales, the Lowcountry region maintained its appeal, demonstrating robust confidence in property values and offering a balanced environment for buyers and sellers alike.

Home prices in Hilton Head and Bluffton continued their upward trajectory in 2024, with the median sales price increasing by 5.3% and the average sales price climbing 8.2% year over year. This brought the average sales price to an impressive $753,195. Such growth underscores the market’s strength and the enduring desirability of the area.

In terms of activity, the market remained stable compared to 2023. A total of 5,213 new pending sales and 5,510 closed sales were recorded, reflecting only marginal differences from the prior year. This consistency created predictability, benefiting both buyers and sellers in their decision-making processes.

For buyers, 2024 brought slightly more favorable conditions. The average days on market for properties increased to 150, allowing prospective buyers more time to consider their options and negotiate deals. Sellers were also slightly more flexible, as evidenced by a small dip in the average sales-price-to-list-price ratio from 98.1% in 2023 to 97.9%. The holiday season offered even better opportunities, with the ratio dropping to 97.3% in December.

The number of new listings rose by 4.8% in 2024, contributing to a 16.2% increase in overall inventory. By year-end, the months of supply had reached 3.6, marking a shift toward a balanced market and a stark contrast to the seller-dominated environment of previous years. A balanced market, defined as having a 3-to-6-month supply of inventory, fosters equitable conditions for buyers and sellers.

Looking ahead, early signs in January 2025 suggest continued momentum. Increased listing activity is providing buyers with more options, while sellers can expect stable pricing supported by sustained demand. Market conditions are expected to remain favorable, with normalized contract terms, including financing and inspection contingencies, becoming more common.

Several factors are poised to influence the market in 2025:

• Interest Rates: Buyers seem to have adapted to current rates, with local lenders predicting potential modest decreases in the spring.

• Costs of Ownership: Rising real estate values in the Lowcountry lead to higher county taxes and home insurance rates, which may be further impacted by national insurance losses and inflation-driven costs. Local communities also face increasing dues to address infrastructure, maintenance needs, and rising contractor and material expenses.

• Supply Levels: The “new normal” for inventory levels suggests no dramatic spikes or declines, supporting a steady market environment.

• Buyer Demand: The Southeast remains a hotspot for relocation including migration patterns that emerged during Covid, driving strong real estate demand in the Lowcountry. Despite rising ownership costs, buyer demand is expected to remain strong in 2025, with many viewing local prices and fees as reasonable compared to their hometown markets.

• Growth and Expansion: We are watching an active evolution of where buyers are considering their next purchase. People who are seeking more affordability and space are turning to areas like Beaufort, Hardeeville and Jasper County.

This brief overview only scratches the surface of what’s happening in the greater Hilton Head and Bluffton real estate market. Head over to the full report which dives deeper into each of these topics, trends, and statistics shaping our real estate market. CollinsGroupRealty.com/2025marketreport/

Chip Collins is the Broker-Owner of Collins Group Realty founded in 2002. Find Chip at chip@collinsgrouprealty.com or collinsgrouprealty.com