Home Is Where The Value Is

A look at a record year in Island Real Estate

As a property owner, this year you can sit back and smile, knowing that overall values are up and still climbing. The demand for real estate on the island and throughout the surrounding Low Country is stronger than ever. 1999 established real estate records over and above prior years' statistics that were already inching into the previously unimaginable.

Given such bustling activity, it is easy to conclude that nearly every residential area on and around the island has a terrific story to tell of record sales and great appreciation in 1999. Naturally, averages do not tell the whole story, and it is always interesting to identify statistics that have helped drive those averages. Accordingly, we wanted to bring to your attention one of the hottest areas that contributed to (and certainly guided) the real estate boom in 1999 - the beach-streets of Sea Pines Plantation.

Ocean-oriented property has long since been the leader of real estate on Hilton Head Island. These days, oceanfront lots in Sea Pines are selling for well over $2 million, which represents a mind-boggling increase compared to the average sales price of $5,500 for the same property back in 1958. If we only knew then what we know now...

Following suit, the homes and lots that occupy second, third or fourth row positions behind the oceanfront properties have established all-time record sales over the past few years and continue to do so today. For example, from 1998 to 1999, the average price of single-family homes along the beach-streets of Sea Pines increased by a whopping 41 percent based on actual sales in 1998 and 1999. During 1999, there were more than 60 transactions along the beach-streets, including both homes and vacant building lots. And most of those sold within only days of hitting the market.

As such an important and strong factor in our overall real estate market, beach-oriented properties continue to be in high demand. Given our incredibly strong economy and the significant inherited wealth in the hands of the baby-boomer generation, more and more buyers can afford the rising prices. This is good news for the future of our market.

Weather you're in Sea Pines, Port Royal, Bluffton or beyond, what will your property be worth in 2000 and beyond?

With technological advances, declining inventory, Internet services and a strong economy, the future of real estate in the Hilton Head Island area is exciting and promising. As you keep and eye on the market, or consider buying or selling, anticipate continued records across the board.

-Chip Collins & Mark Mayer

(as seen in Hilton Head Monthly Magazine, March 2000)