Collins Group Realty's 2015 State of the Market Report | Page 7

2015: The turn-around year for Island
real estate!
Coming off a bit of a fickle year for sales on the Island, we feel that
conditions are ripe for a strong increase in market performance in
2015. Some important developments in 2014 (including an enhanced
sense of wealth among our primary buyer audience, a series of
impressive local high-end sales, and a substantial increase in yearover-year on-line “lookers”) have set the stage for a healthy market to
unfold, starting much earlier in the year than it did in 2014.

2015
hilton head island
outlook
by

Chip Collins, Owner and Broker-in-Charge

The following are the primary factors that will be driving the
Hilton Head Island real estate market in the coming months:
Hilton Head is SC’s Premier DESTINATION Market: This is
nothing new, of course, yet it’s important to acknowledge that the
Hilton Head name carries some serious weight when it comes to
South Carolina real estate. And that matters because…South
Carolina was just named the #2 “inbound” State in the 2014 United
Van Lines National Movers Study, bested only by Oregon. And…
when we line up the top-10 “outbound” States in the same study
with OUR highest-volume of on-line real estate buyers by State,
there is an uncanny correlation (especially NY, NJ, IL, OH, and PA),
demonstrating that Hilton Head is squarely on the map for buyers in
the States with the highest number of potential move-outs.
STRONG Rental Markets: Amid rumblings about second-home-basis property taxes, it’s pleasant news to know that 2015 is going to be
another record year for both long-term (annual lease) and vacationterm (weekly) rentals. In fact, the Chamber of Commerce reports
that advanced reservations are “very strong” already in January, while
long term rentals managers expect continued increases in rental
rates amid an extremely-tight inventory.
Villa Sales to Increase: We already saw this trend happening in the
last quarter of 2014, and we well expect villa sales to generate an
overall higher-level of activity in the greater HHI market. Villa
sellers, in so many instances, become home buyers, thereby
continuing the domino-effect that has been a cornerstone of HHI
real estate for decades. Look for last year’s vacationers to turn into
this year’s villa-buyers as they fell in love with the various, impressive
updates/enhancements/re-developments that continue to improve
the Island’s offerings and appeal.
The Boomers Are (STILL!) Coming: According to AARP,
baby-boomers are turning 65 at a rate of 8,000/day, and Hilton Head
Island, in particular, offers some of the most compelling facets of
a well-rounded retirement community of any location along the
eastern seaboard. More and more retirees will soon be calling Hilton
Head “home,” espec