The constantly updating news feeds about the state of the real estate market can be scary, but it is definitely not a one size fits all situation. Bluffton and Hilton Head Island, South Carolina offer something very different than many primary markets. The draw to be in the Lowcountry is strong, very strong. In fact, not only is there still a strong desire for purchasers but there is also still plenty of room for home appreciation in this market. The crazy fury of buyers from the last few years may have cooled some but there is still a steady stream of people looking to move into this area.
The homes on the market that have stalled are typically over priced or the condition is lacking. Real estate is simple economics that weighs between pricing and condition coupled with location. The math is easy, and looking at the numbers says something very different than we are seeing on the news. The Cobb Group with Charter One Realty listed a home this week in a top Bluffton community for $785,000. This was one of the highest priced homes in the community, and they received a strong offer for over asking price with zero contingencies in less than 5 days. This does not happen in a slow or depreciating market. In another Bluffton community The Cobb Group listed a new build for close to $2,000,000, which again was the highest priced home in the community and again found an eager buyer in less than a month. Sun City Hilton Head has close to 10,000 rooftops, and currently there are only 18 homes on the market in that community. Homes are coming on the market and going under contract very quickly. Last year at this time there were 10 on the market in Sun City Hilton Head which means the market really has not changed much from the “wildly strong” market of last year.
The Cobb Group met with a top local lender yesterday, and our thoughts were echoed strongly by them. We both believe interest rates will settle. Mortgage rates hovering around 5% are still very good rates. The ability for people to buy homes keeps the economy chugging along, and even with cooling rising inflation the government has no plans to clog this pipeline.
The downturn and recession of 2008 stemmed from very different circumstances and projected very different outcomes. Hilton Head Island and Bluffton are within driving distances of many primary markets. Even if we do teeter into a recession, the lure of Hilton Head Island remains strong. People may not dash to Europe but they will rent a condo on the beach. Americans are hardwired to indulge, and Hilton Head Island offers the perfect respite. Have faith and call Allison Cobb, David Hussey or Natalie Burnside with The Cobb Group to have them translate what is fact and what is fiction. It is very important to read between the lines. The real estate market in Bluffton and Hilton Head Island remains strong and shows very few signs of weakening. The world has changed, and this area of the country offers something for everyone. Life is very good in the Lowcountry.
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