2020 Hilton Head Island - Investor Report

Dated: February 14 2021

Views: 212

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 guest’s 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 start to pick back up as we move closer to Spring, and people get tax refunds, this trend is continuing. The only downswing has been Jan – Feb monthly renters “snowbirds” we’ve struggled to attract older the 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 cancellations policies as if COVID isn’t a factor. Each property is unique 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.

Blog author image

Ryan Bohr

When the opportunity arose for Ryan Bohr to join a dynamic team of Realtors in Hilton Head Island, he went "All-In" moving his wife and two young children from Raleigh, NC. He was most recently invo....

Latest Blog Posts

Market Report - August 2021

Market Report - August 2021The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales

Read More

Market Report - July 2021

Market Report - July 2021The White House recently announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment

Read More

Market Report - June 2021

Market Report - June 2021School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and

Read More

Market Report - May 2021

Market Report - May 2021As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low

Read More