Charter One Realty Blog

Hilton Head Market Update: A Mix of Transactions and New Construction Trends

The Hilton Head Island real estate market remains strong and competitive in 2023. So far this year, a total of 4,753 homes and villas have sold, according to a recent search on the Hilton Head Multiple Listing Service (MLS).  As we delve into the year-to-date statistics, a clearer picture emerges of the trends shaping the market.

Sales are comprised of a mix of cash transactions, conventional loans, and FHA loans:

• Cash Transactions: 2,076 (44% of sales)
• Conventional Loans: 2,555 (54% of sales)
• FHA Loans: 122 (2% of sales)

Financing Methods:

• Cash Transactions: Year-to-date, a substantial number of transactions—2,076 to be exact—have been completed through cash purchases. This indicates a significant portion of buyers making direct, non-financed investments in the market.

• Conventional Loans: Following closely behind, there were 2,555 transactions facilitated through conventional loans, showcasing a strong presence of traditional mortgage financing in the area.

• FHA Loans: FHA loans accounted for 122 transactions, reflecting a smaller yet noteworthy segment of buyers leveraging this particular financing option.

New construction is also selling rapidly across the entire Lowcountry. 30% of all home sales in 2023 have been newly constructed homes. However, on Hilton Head Island itself, new construction makes up a much smaller share at just 2.9% of island sales. The island is more built out, while new construction is easier to add in Bluffton and other outlying mainland areas.

With great weather year-round, abundant leisure and recreational opportunities, and proximity to Savannah and Charleston, Hilton Head remains highly desired, putting upward pressure on prices. 

We expect the 2024 spring and summer seasons to remain active as buyers compete for the scenic coastal lifestyle and investment opportunity Hilton Head offers.