Real estate market update
The Hilton Head Island real estate market continued its gradual recalibration into February, offering clearer insight into where balance and opportunity now exist. While demand remains steady, both buyers and sellers are navigating a more deliberate and data driven environment.
Average days on market declined to 96 days, down from 102 days last month, a 5.9% improvement. This suggests that well priced properties are finding buyers more efficiently, even as overall market velocity remains slower than during the post pandemic surge. For perspective, February days on market averaged 54 to 66 days between 2021 and 2023, rising to 79 days in both 2024 and 2025.
Today’s pace reflects a more normalized market rather than a distressed one. Inventory delivered one of the most important signals this month. Active listings dropped to 815, down from 850 last month, a meaningful 4.1% reduction. This is a notable shift, as inventory typically rises heading into spring. Even with this decline, current levels remain well below historical norms. From 2016 through 2020, inventory this time of year routinely ranged between 1,670 and nearly 2,000 homes. Supply today remains structurally constrained.
Closed sales increased to 135 transactions, up from 120 last month, a 12.5% gain. While this is below the elevated sales numbers seen earlier in the decade, it confirms that buyers are active and willing to move forward when pricing aligns with perceived value.
The absorption rate currently sits at six months, which is widely considered a neutral market. However, neutrality does not mean rigidity. Sellers are negotiating more than they have in recent years, particularly on homes that are overpriced or competing with newer inventory. This shift is evident in pricing metrics. The list price to sale price ratio improved slightly to 95.4%, up from 94.4% last month, yet remains below the peak levels of 97% to 99% seen in 2021 and 2022. This clearly reflects a market where buyers have regained leverage.
The median sales price rose to $1,265,000. Looking back over the last five years, median prices this time of year, went from $830,000 in 2021 to $749,000 in 2022, then climbed to $952,500 in 2023, $1,050,000 in 2024, and $1,119,700 in 2025. Today’s figure reflects continued strength at the higher end of the market rather than broad based price acceleration.
In summary, Hilton Head Island is operating in a neutral market with buyer friendly characteristics. Inventory remains historically low, values remain resilient, but negotiation has returned. Buyers are seeing the best pricing flexibility in years, while sellers must be strategic and realistic to achieve successful outcomes.
Dan Prud’homme is the Visionary & Success Coach of The Prud’homme Team at William Raveis Real Estate. dan@danprudhomme.com Theprudhommeteam.com
