news
2020 Hilton Head Island - Investor Report

 

2020 Hilton Head Island - Investor Report


Without a doubt, 2020 was a year that will not be forgotten any time soon. In all of the craziness, it was impossible to predict what was going to happen to the real estate market here in Hilton Head Island. As we begin the new year with high hopes for 2021 we have an opportunity to look back at the market statistics for last year.


In the graphic below, we break down a few areas on the Island and what happened to the real estate values. As you can see, EVERYWHERE saw significant increases. Sea Pines saw the largest gain by percentage with Folly Field following close behind.


Digging deeper into the data you find that many of the purchases made were for primary residences and second homes. Because of this, we have fewer rental properties available in a market where people still want to come and visit.


Interest rates at an all-time low and demand for properties at an all-time high are factors contributing to the exceptional price increases. The low-interest rates are making purchasing here affordable even with the higher prices. Another factor helping affordability for investors is due to people transitioning to working from home. This transition creates an extension in the rental season.


If your property is updated and kept in good condition, you should see 40+ weeks of rental income. We will all be interested to see what the new year brings to our market. So far, it is looking similar to 2020; prices are up, and buyers are paying. If you are looking to buy or sell, now is a good time to do either.


Against tough odds and losing March and half of April revenue, 2020 was a banner year for the rental market here on the Island. To hedge against guests’ hesitance to travel, we encouraged booking by lowering nightly rates, easing cancellation policy, and decreasing the minimum night stay. These changes, along with stimulus checks, people vacationing closer to home, and the ability to work remotely, all created a demand that no one could have anticipated back in February when restaurants and retail stores were forced to close.


Booking traditionally starts to pick back up as we move closer to Spring, and people get tax refunds. This trend is continuing. The only downswing has been January – February monthly renters “snowbirds”. We’ve struggled to attract the older demographic, age and the virus have been a factor deterring travelers. That being said, because demand was so high last year, we’ve adjusted pricing and cancellation policies as if COVID isn’t a factor. Each property is unique, and there’s no “one size fits all” approach, but by fine-tuning rates, overall revenues should increase 10-15%. We’ll continue to monitor and make adjustments as needed, but the outlook for both the rental market and real estate values continues to be overwhelmingly positive.

Here are some other articles you may find useful
2 MIN READ
Market Report - February 2024

  Market Report - February 2024 U.S. existing-home sales grew 3.1% month-over-month to a seasonally adjusted annual rate of 4.00 million, exceeding economists’ expectations and marking the strongest sales pace since August 2023, according

SHOW MORE
2 MIN READ
Market Report - April 2023

  Market Report - April 2023 U.S. existing-home sales declined 2.4 percent month-over-month as of last measure, according to the National Association of REALTORS® (NAR), reversing February’s sales gain of 14.5%. Fluctuations in mortgag

SHOW MORE
2 MIN READ
Market Report - August 2022

  Market Report - August 2022 Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% ye

SHOW MORE
2 MIN READ
Market Report - February 2024

  Market Report - February 2024 U.S. existing-home sales grew 3.1% month-over-month to a seasonally adjusted annual rate of 4.00 million, exceeding economists’ expectations and marking the strongest sales pace since August 2023, according

SHOW MORE
2 MIN READ
Market Report - April 2023

  Market Report - April 2023 U.S. existing-home sales declined 2.4 percent month-over-month as of last measure, according to the National Association of REALTORS® (NAR), reversing February’s sales gain of 14.5%. Fluctuations in mortgag

SHOW MORE
Contact Me
Please complete this form and I will respond to you in confidence.
Code:
Send Message
* The phone number must be a valid phone number.
* The email must be a valid email.
Thank you for reaching out, we'll be in touch soon.