These Hilton Head area community home prices and sales skyrocketed in 2023
In some of the Hilton Head area’s gated communities, median home prices increased by hundreds of thousands of dollars from 2022 to 2023. In others, prices went down just as much, impacting affordability for buyers and how much return sellers will get on their homes.
Home prices weren’t the only factor determining whether potential buyers could purchase a home in Beaufort County. Mortgage rates hit a two-decade high and inventory remained low, pushing home ownership out of reach for many. It resulted in fewer people buying homes in the area than last year, according to the Hilton Head Area Association of Realtors 2023 report. However, compared to state and national numbers, Hilton Head area home sales are declining less quickly, and median prices and inventory are increasing more rapidly.
“It’s like the weather, it’s local,” Realtor Rick Saba said of Hilton Head’s market compared to the national and state markets. One specificity is that the area attracts retirees who are often able to mitigate high-interest rates by selling their previous homes, having a lot of cash and putting down a large down payment.
Even if buyers could afford the market, lack of inventory made it so they “just didn’t have enough choices,” he said. However, inventory is improving. In 2023 there was more inventory than the pandemic market, when buyers often waived contingencies or inspections to quickly snatch what few homes there were for sale.
“That was definitely a different time,” Saba said. “People are getting inspections, negotiating inspections (and) keeping their contingencies.”
Hilton Head area compared to South Carolina and nationally
Sales
The U.S. saw existing home sales decline by 18.7% between 2022 and 2023 to 4.09 million, according to the National Association of Realtors. In South Carolina, closed sales decreased by 13.9% to 88,078.
In the Hilton Head area closed sales were down 7.5% from 2022 to 2023; they were:
7,434 in 2021
5,842 in 2022
5,405 in 2023
Median prices
Home prices were up compared to last year. Nationally, the median home price for all of last year went up under 1% from $386,400 in 2022 to a record high of $389,800 in 2023. In South Carolina, the median sales price increased 2.9% to $325,000 from 2022 to 2023.
For the Hilton Head area it increased by 8.4% and was:
$405,000 in 2021
$476,383 in 2022
$516,500 in 2023
However, in the Hilton Head area, there’s almost a 10 percentage point difference between condos and single-family homes. Single-family home prices were up 4.5% compared to last year, and condos were up 15.3%.
Saba, the Realtor, said this is partially because while home prices shot up quickly in the past couple of years, many condos are still more affordable than a single-family home, despite insurance increases.
“There’s a lot of opportunity for buyers in (in the condo) market that want to be on Hilton Head Island or want to be in Bluffton,” he said.
Inventory
The silver lining for home buyers is that although inventory is still historically low, it’s getting higher, meaning more options. Comparing 2023 to the prior year, the number of homes available for sale was up by 23.3% in the Hilton Head area. Statewide, inventory went up 8.3%.
In the Hilton Head area, the number of listings at the end of each year were:
534 in 2021
1,045 in 2022
1,288 in 2023
To better understand the real estate market in each Hilton Head area gated community, the Island Packet and Beaufort Gazette listed where home prices are highest and lowest, and where they’re increasing and decreasing the most. Due to the sample size, some of the numbers may be skewed. For example, the Spanish Wells community’s median sales price went up 54.8%, but Realtors only closed seven sales in that community. Homes and condos that aren’t within gated communities weren’t included in the lists, but their data from 2023 compared to 2022 are:
Condos and villas
Total closed sales: 260; down 28.8%
Median price: $318,250; up 11.7% from $285,000
Homes
Total closed sales: 70; down 50%
Median price: $640; up 6.7% from $599,950
The mapped data
Most closed sales
1. Sun City
603; down 11.8%
2. Latitude Margaritaville
579; up 40.5%
3. Sea Pines
285; down 18.6%
4. Palmetto Dunes
229; down 18.2%
5. Forest Beach
218; down 13.8%
6. Hilton Head Plantation
216; down 0.9%
7. Shipyard
86; down 23.2%
8. Palmetto Bluff
84; down 6.7%
9. Hampton Lake
73; down 3.9%
10. Hilton Head Lakes
68; up 23.6%
Highest priced homes
Nine communities had median sales prices over $1 million, with three over $2 million. Including their percentage increase since 2022, they are:
1. Spanish Wells
$2.4 million; up 54.8% from $1,550,000
Based on seven sales.
2. Port Royal Plantation
$1,477,000; up 34.3% from $1,000,000
Based on 37 sales.
3. Palmetto Bluff
$2,260,185; up 6.1% from $2,130,636
Based on 84 sales.
4. Wexford
$2,250,000; up 2.3% from $2,200,000
Based on 29 sales.
5. Spring Island
$1,800,000; up 14.3% from $1,575,000
Based on 13 sales.
6. Colleton River
$1,797,500; up 16.7% from $1,540,000
Based on 30 sales.
7. Long Cove
$1,437,500; up 22.3% from $1,175,000
Based on 18 sales.
8. Belfair
$1,350,000; up 5.9% from$1,275,000
Based on 37 home sales.
9. Berkeley Hall
$1,097,500; down -9.3% from $1,209,500
Based on 28 home sales.
10. Indigo Run
$1,068,750; up 16.4% from $918,400
Based on 42 home sales.
Lowest priced homes
All communities had higher median sales prices than $325,000, South Carolina’s median sales price, according to the South Carolina Association of Realtors. The communities with the lowest median home prices and their percentage increase since 2022 are:
1. Hilton Head Lakes
$395,495; up 19.8% from $330,101
Based on 68 sales.
2. Latitude Margaritaville
$454,350; up 13.6% from $400,036
Based on 579 sales.
3. Sun City, Including Riverbend
$511,000; up 9.9% from $465,000
Based on 603 sales.
4. Forest Beach
$520,000; up 13.4% from $458,500
Based on 218 sales.
5. Rose Hill
$599,850; down 7.7% from $649,900
Based on 56 sales.
6. Shipyard
$612,500; up 2.6% from $597,000
Based on 86 sales.
7. Daufuskie Island
$640,000; up 10.4% from $580,000
Based on 47 sales.
8. Fripp Island
$687,000; down 43.7% from $1,220,000
Based on 24 sales.
9. Palmetto Dunes
$765,000; down 4.4% from $800,000
Based on 229 sales.
10. Folly Field
$765,000; up 10% from $350,000
Based on 105 sales.
Largest percent increase since 2022
1. Spanish Wells
$2,400,000; up 54.8% from $1,550,000
Based on seven sales.
2. Moss Creek
$822,000; 33.7% from $615,000
Based on 56 sales.
3. Hampton Hall
$965,000; up 27.8% from $755,000
Based on 50 sales.
4. Long Cove
$1,437,500; up 22.3% from 1,75,000
Based on 18 sales.
5. Windmill Harbour
$882,000; up 20% from $735,000
Based on 18 sales.
6. Hilton Head Lakes
$395,495; up 19.8% from $330,101
Based on 68 sales.
7. Colleton River
$1,797,500; up 16.7% from $1,540,000
Based on 30 sales.
8. Indigo Run
$1,068,750; up 16.4% from $918,400
Based on 42 sales.
9. Spring Island
$1,800,000; up 14.3% from $1,575,000
Based on 13 sales.
10. Forest Beach
$520,000; up 13.4% from $458,500
Based on 218 sales.
Smallest percent increase since 2022
1. Fripp Island
$687,000; down 43.7% from $1,220,000
Based on 24 sales.
3. Oldfield
$922,730; down 8.4% from $1,007,836
Based on 50 sales.
2. Berkeley Hall
$1,097,500; down 9.3% from $1,209,500
Based on 28 sales.
3. Rose Hill
$599,850; down 7.7% from $649,900
Based on 56 sales.
4. Palmetto Dunes
$765,000; down 4.4% from $800,000
Based on 229 sales.
5. Sea Pines
$963,000; up 2.2% from $942,500
Based on 285 sales.
6. Wexford
$2,250,000; up 2.3% from $2,200,000
Based on 29 sales.
7. Palmetto Hall
$975,000; up 2.4% from $952,500
Based on 27 sales.
8. Shipyard
$612,500; up 2.6% from $597,000
Based on 86 sales.
9. Callawassie Island
$824,494; up 4.3% from $790,500
Based on 34 sales.
10. Hampton Lake
$894,670; up 4.4% from $857,000
Based on 73 sales.
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