December 2024 Real Estate Market Report: Hilton Head Island and Bluffton, South Carolina

The December 2024 real estate market in Hilton Head Island and Bluffton, South Carolina, offered a unique snapshot of trends shaped by regional demand, seasonal influences, and broader economic factors. Whether you’re a buyer, seller, or investor, understanding these developments can provide valuable insights into making informed decisions.

Key Highlights for December 2024

• Median Home Prices: The average home price on Hilton Head Island increased slightly year-over-year to $850,000, reflecting a 2.5% rise. Bluffton saw a more moderate 1.8% increase, with average home prices reaching $510,000.
• Inventory Trends: Inventory levels remained tight on Hilton Head Island, with just over three months of supply, down 5% from November. Bluffton offered more availability, with a 4.2-month supply, appealing to first-time buyers and investors.
• Days on Market: Homes on Hilton Head Island averaged 68 days on the market, reflecting the high desirability of the area. Bluffton properties moved faster, with an average of 54 days on market due to increased affordability and growing demand.

Mortgage Rates and Local Impacts

In December 2024, mortgage rates hovered around 6.85%, a slight increase from earlier in the year. While rates influenced some buyer hesitation, the luxury appeal of Hilton Head Island mitigated this impact. Bluffton saw more pronounced effects, particularly among first-time buyers. Many turned to adjustable-rate mortgages (ARMs) or explored creative financing options to secure their dream homes.

Luxury Market Trends on Hilton Head Island

The luxury market on Hilton Head Island remained resilient, driven by strong interest in second homes and short-term rental investments. Oceanfront properties in Sea Pines and Palmetto Dunes continued to attract high-net-worth individuals, with sales volume increasing 8% year-over-year.

• Top Performing Areas:
  • Sea Pines: Featured properties averaging $1.2 million, with many selling above asking price.
  • North Forest Beach: Maintained strong demand due to its proximity to amenities and the beach, averaging $975,000 per property.

Bluffton’s Growing Appeal

Bluffton’s charm as a growing residential and investment market stood out in December. The Old Town Bluffton area saw robust activity, driven by its walkability, dining, and cultural offerings. Meanwhile, neighborhoods like Bluffton Park attracted short-term rental investors due to its zoning flexibility and affordability.

Short-Term Rental Market Insights

Both Hilton Head Island and Bluffton witnessed continued interest in short-term rental investment properties.

• Hilton Head Island:
  • Occupancy Rates: December saw an average of 62% occupancy for short-term rentals, boosted by holiday tourism.
  • Popular Rental Areas: Palmetto Dunes and Forest Beach dominated the market due to their prime locations.
• Bluffton:
  • Properties in Old Town Bluffton achieved 58% occupancy rates in December, benefiting from their proximity to Hilton Head and Savannah.

New Construction and Development

Bluffton led the way in new construction, with developments like New Riverside Village offering modern homes starting in the mid-$300,000s. On Hilton Head Island, new builds remained limited, keeping demand high for existing properties.

Local Economic and Lifestyle Drivers

• Seasonal Tourism Impact:
  Tourism fueled much of the local economy in December, especially on Hilton Head Island, where events like holiday markets and golf tournaments drew visitors.
• Infrastructure Investments: Bluffton continued to benefit from infrastructure enhancements, including road improvements and park developments, which bolstered its appeal for families.

Outlook for 2025

As we move into 2025, Hilton Head Island and Bluffton are expected to remain top choices for buyers seeking a mix of luxury, lifestyle, and investment opportunities. However, with mortgage rates likely to stay elevated, buyers should prepare for competitive conditions, especially in highly sought-after neighborhoods.

Key Takeaways

• For Buyers: Start early to secure financing and target off-season listings for better deals.
• For Sellers: Price your property competitively to capitalize on the strong demand.
• For Investors: Focus on short-term rental properties in high-demand areas like North Forest Beach and Old Town Bluffton.

The December 2024 real estate market highlighted the enduring appeal of Hilton Head Island and Bluffton, proving these areas continue to be prime spots for real estate investment and luxury living.