Insurance woes and price increases. Hilton Head condo market midyear real estate update
The Hilton Head Area Realtors and Beaufort-Jasper County Association of Realtors released their June market reports earlier this month, providing data on condo inventory, prices, construction and days on the market for the first half of 2023. Earlier this week we published an analysis of single-family homes. This report will focus on condos, villas and town homes.
Condos - customarily called villas on Hilton Head - accounted for a little over 25% of property sales in the Hilton Head area and about 12% of property sales in the Beaufort Jasper county area this past year since June, according to the reports.
The Hilton Head Area Realtor market reports includes information on properties sold north and south of the Broad River; however the largest areas of focus are Hilton Head, Bluffton, Daufuskie and Hardeeville. The Beaufort-Jasper County Association of Realtor market reports include the most comprehensive data for northern Beaufort County and Jasper County.
Across both areas, demand continues to outpace supply as condo prices are see the higher median price increases than single-family homes.
To interpret the data, The Island Packet and Beaufort Gazette spoke with representatives from both groups. Here’s what the data looks like halfway through 2023, and what experts said about the following topics in regard to condos:
If you own a villa, townhouse or condo, what’s happening with your property’s value?
Hilton Head
Condos and villas on Hilton Head, had the largest median price increase. The average price so far this year is $520,000, a 14.3% increase from last years median of $455,000. This is in the face of increasing insurance rates putting pressure and driving the total annual cost of condo ownership higher, according to the President of Hilton Head Area Realtors Kathy Schroder.
Some condos in Hilton Head saw a 499% increase in their master insurance policy this year, forcing home buyers to factor insurance more heavily into their home-buying decisions.
“That extra expense could put pressure on condo prices, particularly in the ocean area,” Schroder said.
Beaufort-Jasper area:
The Beaufort-Jasper area saw a similar trend: condo prices are seeing the highest median price increase, according to Beaufort-Jasper County Association of Realtors Vice-President Mark Davis-Cote.
The median condo price, based on a 12-month rolling median, is $310,000, a 26.5% increase from $245,000 the year before.
“When house prices go up so quickly people look for a second suitable option instead,” he said. “Condos, mobile homes, and manufactured housing are often more of a lower price point and so those prices went up quickly as a secondary reaction.”
He said that once the housing supply dropped manufactured housing and condos followed, increasing condo prices even more.
Are there a lot of options for what condo to buy?
Hilton Head area:
In terms of months inventory — the amount of time it would take for all current listings to sell if no new listings entered the market — there are 2.5 months of inventory for condos. The number of properties available for sale at the end of June this year is down 2.5% from 272 now to 279 in June last year.
Five to eight months of inventory is considered a balanced market, and inventory increases when demand lessens and new listings keep being added to the market. When there isn’t a lot of inventory it’s considered a sellers market and when there’s more inventory it’s considered a buyers market.
Beaufort-Jasper:
In terms of months inventory, there are 2.6 months of inventory for condos, up 30% from 2 months at this time last year. The number of properties available for sale at the end of June is up 14.8% from 70 now to 61 in June of last year.
If you’re selling a condo, how long will it take?
Hilton Head area:
Condos are on the market 49.6% longer this year than last year so far. As of June, condos are on the market for 103 days before sale this year compared to 69 days last year.
Beaufort-Jasper:
Condos are on the market 24.6% longer this year than last year so far. Based on a 12 month rolling average, condos are on the market for 76 days before sale this year compared to 61 last year.
For a general and single-family home market update go to: https://www.islandpacket.com/news/business/real-estate-news/article277506158.html
