4. Current Market Condition & Market Reports

2008 Latest Market Trends for Hilton Head 2008 by W. McDonald

“Are we at the bottom?” -
Everyone is asking the question; these are my thoughts...

Since the oil embargo in the early 70s’, I have experienced numerous minor and major changes in the real estate market especially South Carolina and on Hilton Head Island. The truly successful buyers from my experience have always used an old Scottish proverb – “buy low and sell high”.

If we are, in fact, “at the bottom” or “bumping the bottom” of this market and there are a number of reasons to believe that we are there, now is the best time to shop for quality properties. Quality properties will not last long!

Hilton Head is only 5 by 12 miles and even though we have an increase in inventory does not mean that it is quality inventory. If you, as a prospective buyer and wish to buy a quality property in a world class destination, for the right reasons: “use and enjoyment” with long-term focus on potential appreciation. Then this could be the right time for you.

Over the past 30 years the median price of existing homes has increased more than 6 % per year nationally; on the Island we have experienced much greater appreciation and we will see it again.

Is now the time to buy? Inventory is up, sellers are re-adjusting their prices in the market and mortgage rates are low but expected to rise by year’s end. If you are considering creating long-term wealth, use and enjoyment based on my past knowledge and experience you will thank me many times over for buying at the right time!



Great Time to Buy
June 2008

Personal enjoyment & financial future are good reasons to invest in property now.

Thinking of securing a vacation or investment home? You are not alone. According to the National Association of REALTORS, investment and vacation homes accounted for approximately 33 percent of the overall sales in 2007, which is close to historic norms - down from 36 percent in 2006.

And where better to purchase a second home or investment property than right here in the Low Country. Approximately 41 percent of vacation homes and 38 percent of investment homes purchased in 2007 were purchased in the South, making Hilton Head Island and the surrounding Low Country a perfect choice.

Why buy a vacation home? Personal enjoyment is one of the primary reasons, and to have a special place for family time and making memories. Others purchase to use as their primary residence in the future, diversify investments and acquire rental income, and for some, they have extra money to spend. The typical vacation home buyer in 2007 was 46 years old, had a median household income of $99,100 and purchased property that was a median of 287 miles from his or her primary home.

*Statistics provided by the National Association of REALTORS.