Hilton Head Island Market Report - December 2021

[Ron Williams]

The 2021 housing market was one for the history books. After three consecutive

months of increases recently, existing home sales are on pace to hit their highest

level in 15 years, with an estimated 6 million homes sold in 2021 according to the

National Association of REALTORS®. Sales prices reached new heights, inventory

hit rock bottom, and homes sold in record time, often for well above asking price.

Mortgage rates, which began the year at historic lows, remain attractive, and

homeowners who choose to sell in the coming months can expect to see plenty of

buyer activity due to pent-up demand during the pandemic.

New Listings were down 4.4 percent to 392. Pending Sales decreased 18.9 percent

to 398, the seventh consecutive month of year-over-year declines. Inventory shrank

50.8 percent to 483 units.

Prices moved higher as Median Sales Price was up 23.1 percent to $465,131. Days

on Market decreased 20.8 percent to 99 days. Months Supply of Inventory was

down 50.0 percent to 0.8 months, indicating that demand increased relative to

supply.

Looking ahead, experts anticipate many of the housing market trends of 2021 will

continue in 2022, albeit at a more moderate level. Strong buyer demand and

inventory shortages are likely to persist over the next year. Home sales are

projected to remain strong but will be tempered by the limited supply of homes,

higher sales prices, and rising interest rates, with the Federal Reserve planning

multiple rate hikes in the new year. Price growth is expected to slow somewhat as a

result, but affordability will likely remain a top constraint for some homebuyers.