We all know the “fast flipping” era is over for now.  However, if you want to buy a home on Hilton Head Island, and plan on keeping it at least 3-5 years, NOW is the time to buy that primary residence or second home.

2006, saw nearly a 50% decline in the number of tranactions over 2005 on Hilton Head Island, yet $1 Billion worth of property changed hands.  That is a pretty strong number for an island that is only 10 miles long and 5 miles wide!  High levels of inventory meant no rush to buy, but also presented the best market for buyers.   That’s exactly what the smart money is now doing.  Vacation rentals are up so far this summer over the past two summers, making investment/rental properties an attractive choice.  Rental companies are also beefing up their service to owners and guests as vacationers expect only the best when arriving for their HHI vacation.

Below are six ocean front transactions in Sea Pines that signal the turnaround and show the strength of the Hilton Head market overall.  These transactions will impact the benchmark of 2nd row, 3rd row, etc. prices.  Note that three of these transactions saw recording-breaking prices….

11/20/06—38 Surf Scoter—$9,200,000—highest price ever paid for a lot/teardown.

3/15/07—16 Whistling Swan—$6,500,000—2nd highest price ever paid for a house in Sea Pines.

4/13/07—23 Black Skimmer—$7,450,000—Highest price ever paid for a house in Sea Pines.  First purchase on HHI for these buyers.  Will be a second home.

5/4/07—19 Piping Plover—$4,562,000

5/26/07—17 Marsh Wren—$7,725,000—Highest price ever paid for a house in Sea Pines.  Will be a second home.

Pending—15 Painted Bunting—$4,800,000

As we know, oceanfront buyers tend to be sophisticated, connected and informed buyers.  They are making their move in the real estate market.  It will take a bit of time for the facts to trickle down and the market to recognize that the smart money is buying now.  By the time everyone sees this and decides to start buying, that is when prices will start going up again.