Tight inventory continues to shape Hilton Head real estate market

Hilton Head Island’s real estate market continues to move through a fascinating period, with tight inventory, slower sales activity, and meaningful opportunities for buyers who are paying close attention to the numbers.

Average days on the market increased again this month, rising from 109 days last month to 115 days, a 5.5 percent increase. That is also well above the recent five year comparisons of 84 days in 2021, 48 in 2022, 47 in 2023, 71 in 2024, and 69 in 2025. Homes are still selling, but buyers are taking more time, and pricing accuracy matters more than ever.

Inventory remains one of the most important stories. There are currently 882 active listings, down just slightly from 885 last month. That is only a 0.3 percent decrease, so inventory was essentially flat month over month. While today’s inventory is higher than the 820 listings in 2022 and 770 in 2023, it remains lower than 2021, 2024, and 2025. Considering the size and popularity of the Hilton Head market, 882 active listings is still very limited and may be holding back sales volume.

Closed sales declined from 200 last month to 163 this month, an 18.5 percent drop. Compared with prior years, sales are also slower than the 307 closings in 2021, 233 in 2022, 206 in 2023, 186 in 2024, and 193 in 2025. This slowdown does not appear to be simply about demand disappearing. In many cases, the right inventory is still hard to find, especially for buyers searching within specific neighborhoods, views, rental potential, or lifestyle categories.

The list price to sale price ratio improved from 95.5 percent last month to 96.1 percent this month. That is a positive sign for sellers, but it also highlights an opportunity for buyers. Compared with the 100 percent ratios seen in 2021 and 2022, buyers today have more negotiating room, even in a market where inventory remains tight.

The median sales price sits at $1,175,600. That is below last year’s $1,198,950, but this does not necessarily suggest values are falling. More likely, luxury sales have slowed somewhat amid uncertainty tied to the conflict involving Iran, meaning fewer higher priced properties are closing at the moment.

With 882 listings and 163 closed sales, Hilton Head has roughly 5.4 months of supply. That still leans toward a seller’s market, though it is far more balanced than the frenzied conditions of recent years. If geopolitical concerns ease and confidence improves under new Federal Reserve leadership, the remainder of the year could become much stronger.

Dan Prud’homme is the Visionary & Success Coach of The Prud’homme Team at William Raveis Real Estate. dan@danprudhomme.com Theprudhommeteam.com.