February 2025 Hilton Head Real Estate Market Update
The Hilton Head real estate market continues to evolve, reflecting broader national trends while maintaining strong local demand in key price segments. Here’s a closer look at the latest data from the Hilton Head MLS and how it impacts buyers and sellers in the Lowcountry.
National Trends Influence Local Market
Across the U.S., new single-family home sales fell 10.5% from the previous month and 1.1% year-over-year, according to the U.S. Census Bureau. This decline fell short of economists’ expectations, who had forecasted 680,000 units but saw only 657,000 units sold. Regionally, the South experienced a 14.8% drop, mirroring similar declines in the Northeast and Midwest, while the West posted a 7.7% increase.
Existing-home sales also declined nationwide for the first time since September, slipping 4.9% month-over-month to a seasonally adjusted annual rate of 4.08 million units, per the National Association of REALTORS® (NAR). However, sales remained 2% higher year-over-year, marking the fourth consecutive annual increase. Home prices continued their upward trend, with the national median existing-home price rising 4.8% to $396,900, driven by limited inventory.
Pending Sales and Price Trends in Hilton Head
Locally, pending sales in the Hilton Head Association of REALTORS® region saw a slight decline of 1.7% over the 12-month period from March 2024 through February 2025. However, the luxury market remained strong, with pending sales in the $1,000,001 and above range surging by 22.4%, indicating continued demand for high-end properties.
The overall Median Sales Price in the region rose 3.6% to $545,664, with single-family homes leading the way at $580,916, up 3.7%. Notably, new listings in Hilton Head increased 10.4% to 681, even as pending sales dipped 3.5% to 468.
Days on Market and Inventory Levels
The pace of sales varied by price point:
- Homes priced between $500,001 and $750,000 sold the fastest, averaging 45 days on the market.
- The slowest-moving properties were those in the $150,000 and below range, averaging 85 days.
- Overall, Days on Market rose 13% to 61 days.
Meanwhile, inventory levels rose 22.4% market-wide, providing more options for buyers. The largest increase was seen in the condo segment, where inventory jumped 24.4%. The market currently has 3.8 months of inventory for single-family homes and 4.8 months for condos, approaching a more balanced market. Overall months supply increased 24.2% to 4.1 months.
What This Means for Buyers and Sellers
For buyers, increasing inventory and slightly slower sales provide more opportunities and negotiating power. For sellers, especially those in the luxury market, demand remains strong, making it an opportune time to list higher-end properties. Pricing competitively and understanding market trends will be key to success in the months ahead.
Whether you’re considering buying or selling in Hilton Head, The John Weber Team is here to guide you through the process with expert insight and personalized service. Contact us today to navigate the Lowcountry real estate market with confidence!