Hilton Head Island Market Report - October 2021

[Ron Williams]

October 2021

The U.S. housing market remains robust, with strong activity reported across both rental and residential housing fronts. Single-family rent prices are increasing rapidly, as demand for single-family housing and inventory constraints forces some buyers to rent, increasing competition and pushing rents up across the nation. Meanwhile, sales of new construction single-family homes recently hit a six-month high, rising 14% to a seasonally adjusted rate of 800,000, according to the latest data from the U.S. Department of Housing and Urban Development.

New Listings were down 25.3 percent to 541. Pending Sales decreased 28.9 percent to 543. Inventory shrank 48.4 percent to 659 units.

Prices moved higher as Median Sales Price was up 15.2 percent to $455,000. Days on Market decreased 40.1 percent to 85 days. Months Supply of Inventory was down 54.5 percent to 1.0 months, indicating that demand increased relative to supply.

As temperatures drop, existing home sales continue to be plentiful, buoyed by strong demand, low interest rates, and a slight uptick in new listings in recent months, according to the National Association of REALTORS®. With interest rates inching upward, and experts expecting further rate increases on the horizon, motivated buyers are hoping to lock in their home purchases to take advantage of what are still historically low rates.