Join us as we delve into the dynamic Hilton Head Island real estate market, where the essence of Southern charm intertwines with the allure of all-season coastal living.
In honor of International Women’s Month, we’re privileged to hear from Alison Melton, Managing Partner of The Agency Hilton Head, who— alongside fellow Managing Partner, Sabeth Biangone and Managing Director Paige Rose— leads the local team with vision and expertise.
Here, Alison illuminates the enchanting appeal of Hilton Head’s waterfront lifestyle, discussing the broadening array of buyers and investors drawn to this “little slice of Southern heaven.” She also sheds light on the escalating demand for move-in-ready properties and amenity-rich communities, the exciting trends shaping the future of this idyllic island community, and why Hilton Head continues to capture the hearts of buyers from across the nation.
What does being a female-led brokerage in this market mean to you and the community?
Overall in the real estate industry, women make up close to 70% of all real estate professionals but only hold 5% of leadership positions. Over the last few years, the voice of the Female Realtor has been louder than ever before, and we are ripe for new leadership and change.
The real estate industry in the South Carolina Lowcountry has been dominated by men since its inception over 100 years ago. In fact, there is not a single major brokerage in our area that is both owned and operated by women. That all changed on March 5, 2024, when we launched The Agency Hilton Head. Sabeth, Paige and I are aiming to redefine how real estate is done here by demonstrating our high level of commitment and service to our clients, taking a creative approach to marketing properties, and utilizing our local network to become expert residential matchmakers.
The entire leadership team at The Agency Hilton Head is comprised of badass women who not only excel in their roles but also have families who support them and have been amazing cheerleaders through this process.
Personally, I wanted to do this to set an example for my daughter, who is 11 and I can confidently say, may run the world someday. I want to show her we as women can do it all…but we get to do it all while running around in Louboutins.
What do you think is attracting buyers to Hilton Head Island right now?
The entire Lowcountry area has become one of the most desirable locations to live in the U.S. over the past few years. As we are wedged between Charleston (consistently ranked the #1 City in the U.S.) and Savannah (ranked the #4 Travel Destination in the U.S.), the Hilton Head area offers fabulous weather, world-class golf courses, gorgeous beaches, top-notch resorts and restaurants, and—of course— that wonderful Southern hospitality. The overall lifestyle can’t be beat.
Furthermore, when Hilton Head was developed by Charles Fraser in the 1960s, he fought to preserve the natural beauty of the Lowcountry. To that end, our beaches back up to maritime forests and our streets are lined with palmetto trees and live oaks dripping with Spanish moss. The overall vibe in the area—to preserve nature, instead of slash it down and develop it—is what attracts so many tourists and residents to this little slice of Southern heaven.
Like many other Southern resort markets, we’ve captured the wave of Northern migration as South Carolina offers a lower cost of living, and lower property taxes—especially for primary residents, where property taxes hover around 0.5% of their purchase price.
Can you provide an overview of the current real estate market on Hilton Head Island?
We are still experiencing a booming market in the Hilton Head area and believe that 2024 will be another incredible year for our agents. Prices are holding steady and growing, and just last month in February, closed sales were up almost 25% year over year and prices were up 11% since February 2023.
Typically, March and April are the busiest months of the year in the real estate market as the weather is just perfect— in the 70s and 80s with no humidity. Plus, we are gearing up for the RBC Heritage golf tournament, also known as “The South’s Biggest Party.” Many sellers want to take advantage of the spring market as buyers flock to the area to secure their spot ahead of the summer tourist season.
Like the rest of the country, we have seen a significant decrease in inventory over the last few years and that continues to be the main challenge in our market.
How has the appeal of the Hilton Head Island lifestyle evolved in recent years?
We are definitely seeing a new, younger generation settle in the Lowcountry, especially in the “post-Covid” world, since professional careers offer more flexibility and the ability to work from home.
Beginning in late 2020, we shifted from a market filled with Baby Boomers looking for retirement homes to a surge of Gen-X and Gen-Z buyers looking to relocate their families to an area known for its relaxed lifestyle, a plethora of outdoor activities, and well-priced real estate, compared to other resort markets.
What we have found in recent years is that shortly after the “parents” relocated to Hilton Head or Bluffton, the adult children and their families soon followed. In the post-Covid era of remote working, we have experienced an influx of new residents from areas such as New York, New Jersey and California, representing a much younger demographic and a desire for a more luxurious lifestyle.
What’s amazing is that the draw of Hilton Head Island hasn’t changed much over the years. People are still attracted to the area for its natural beauty, abundance of golf courses, and perfect beaches with hard-packed sand (making them ideal for running and biking). However, we now have much better dining and shopping, an active performing arts center, and a more sophisticated clientele on the island than we did 20 or 30 years ago.
What are some interesting trends you’ve been seeing?
In the last few years, we’ve had many buyers from the West Coast, especially California, who are enthusiastic about the gorgeous private golf communities.
Security and privacy are also a big draw of the area. We’re unique because the vast majority of our communities are set behind gates, and filled with amenities such as multiple golf courses, tennis and pickleball, fitness centers, restaurants, equestrian facilities, and more. And they are designed to allow residents to live within their “bubbles,” too if they so choose.
Another trend we are seeing, which I love, is the back kitchen added to newly constructed homes. It’s the South and we love to entertain, but keep our homes looking pristine while we do, so this is the perfect solution to do all of your party prep away from your guests, and keep your mess out of sight.
What areas or neighborhoods are you seeing the most interest in right now?
We are seeing a lot of demand for private golf communities. Examples of that here right now are Berkeley Hall, which offers two 18-hole Tom Fazio-designed courses, a stunning 35,000-square-foot Jeffersonian-style clubhouse, a spa and fitness center, tennis, pickleball and deep water access along the banks of the Okatie River. This is one of the lowest-density private golf communities in the U.S. and ranked among the top 150 golf clubs in the world and top 50 in the nation. Prices in Berkeley Hall range from $800,000 for a four-bedroom golf cottage to over $3M for waterfront estates.
As we’re gearing up for the summer tourist season, we’re also seeing a lot of demand in Sea Pines, since homes and villas alike provide tremendous income opportunities with short-term rentals. Prices in Sea Pines range from $500,000 for a studio villa to $18M for a newly constructed oceanfront home.
What areas or neighborhoods are poised for the most new development in the next few years?
We are seeing an absolute boom in Jasper County, which is our neighbor to the west. There, we have seen amazing developments such as East Argent in Hardeeville come to fruition. This 7,350-acre community will include 9,500 residential homes and 1.2 million square feet of commercial retail and office space.
Also showing major growth is the town of Hardeeville, which, with its close proximity to Hilton Head Island and Savannah, has become one of the fastest-growing, most sought-after areas in the Lowcountry of South Carolina and Coastal Georgia.
We’re also seeing a lot of development in Palmetto Bluff, an oasis for golfers and other outdoor enthusiasts who want a resort-like lifestyle every day of the year. This private gated community, which is also home to Montage Palmetto Bluff, boasts some of the most extraordinary properties in the Lowcountry set throughout various neighborhoods and villages, such as Wilson Village and Moreland. The “Bluff” encompasses over 20,000 acres (roughly 1.5x the size of Manhattan) and the final “village” behind the gates, Anson Village, will bring about a brand new 50-slip marina along the May River, with access to the Intracoastal Waterway and ultimately the Atlantic Ocean. The community will also have a new 18-hole golf course designed by famed architects Coore & Crenshaw.
As of today, there are close to 1,000 single-family homes in Palmetto Bluff, with the capacity to go up to 4,000 homes at completion. This is definitely the one to watch. Home prices in Palmetto Bluff range from $2M to more than $10M.
Are there any notable shifts in buyer preferences or behavior that you’ve observed?
Buyers today want turn-key, “move-in ready” homes. The allure of “taking on a project” is gone, especially since it’s difficult to secure contractors. Plus, since the building process in the area can take up to two years for a custom luxury home (sometimes longer), many buyers are unwilling to go through a ground-up building process.
What advice would you give to potential buyers or sellers in your market based on the current trends and activity?
Don’t get too aggressive with pricing. Listen, I’m the first one to say that we can set a record here, but when some sellers are trying to shoot for the moon when rates are still high, it’s not a great strategy.
Also, sellers should expect to spend some time preparing to list their home to achieve the highest possible return on their investment. That means decluttering, staging, freshening up landscaping, power washing, and addressing any deferred maintenance—all before hitting the market. When you work with our team at The Agency Hilton Head, these are all services we can assist our sellers with.
For buyers, our advice is if you come across a property of interest, jump on it. The Hilton Head area is still a highly competitive market. Let the professionals negotiate the details to get you the best deal possible in terms of price and terms that work for you.
We have seen so many of our clients over the years who are waiting for the “perfect” home to come up, or are waiting for “rates to come down,” and they keep missing out on amazing opportunities. We always suggest that if you’re looking to relocate to the Hilton Head area and still have a property elsewhere, start with something small that can eventually be converted into an income property. That way, you are actually here and can check out the new listings as soon as they hit the market. With low inventory, and prices not seeing relief anytime soon, this has been a fabulous strategy for many of our clients.
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