Jeff Hunt - Residential Real Estate - Dunes Marketing Group

As Hilton Head Island’s sleepy housing market emerges from its winter hibernation, everybody wants
to know where real estate is headed in 2007. Will prices rise or fall? Will the market rebound? Will interest rates remain stable? Will 2007 be a good time to buy or sell real estate? Based on current market forecasts and economic factors, all signs point to a busy year ahead. Although the 2006 market took a dip, historically speaking, it wasn’t such a bad year after all. According to real estate veteran, Bill Baldwin, Dunes Marketing Group Director of Sales and Marketing, if you compare it to other years—2002, 2003 and 2004—the ’06 market was right in line. “2005 was an anomaly,” he said.

Overall, 2006 sales were down about 36 percent from 2005, but in some areas, it was over 50 percent. Areas that fared worst were the resorts; Sea Pines, Shipyard, and Palmetto Dunes, he explained. In spite of that, the average price of a villa or home site actually increased in 2006, whereas the average price of a home went down around seven percent. What do the numbers mean to you? “Inventory levels are good—higher than in 2005. As a buyer, the one thing you have is choice,” said Baldwin, predicting that the best selections will be snapped up this spring. “The people who buy early this year will be the ones who get the best value in terms of location, view, condition and price,” he said.

Why Hilton Head Island?
According to a recent report in USA Today, “Hilton Head was way ahead of its time.” The product of visionary developer, Charles Fraser, billed as the nation’s first environmentally sensitive,
eco-planned resort, even as it has become a mega-destination, drawing over two million visitors a year, the island remains a model for global development. Great care has been taken to preserve miles of pristine tidal marshes and dense forests, protecting our wildlife and promoting a healthy ecosystem. “Hilton Head Island is such a unique place,” said Baldwin. “The way we have concerned ourselves with ecology is really paying off.” Although the real estate market suffered a slow down in 2006, restaurants and businesses reported one of the best years yet with more visitors than in previous years. “We hit a speed bump, but the buyers are backing up,” said Baldwin. “People are moving to the southeast—not just retirees, but younger people.” While the climate is certainly a major draw, the econom is also strong here. “Many more people are coming into North Carolina, South Carolina and Georgia than are going out. The entire southeast will benefit from this,” he explained. Of all places, Hilton Head Island and its surrounding area has the most to offer. “People just want to be here,” he said. “The lifestyle, natural beauty, temperate climate and world-class amenities are hard to beat anywhere.”

Why Dunes Marketing Group?
There’s something for almost everyone in the Lowcountry. It’s a matter of finding the right realtor who can narrow down the choices. “Buyers need to work with an experienced and knowledgeable realtor. This way, they can save time and learn quickly what their options may be,” said Baldwin. In business for over 28 years, with over 100 full time professional realtors, DMG is ranked one of the top three performing area real estate companies. In addition, DMG is a member of Leading Real Estate Companies of the World (RELO), the largest relocation company in the world, with 650 member firms, 4,700 offices and 120,000 associates in 20 countries, doing more than 40 billion in sales annually. DMG is also a member of the Hilton Head Island MLS service, which has more than 1,500 realtors. “We also offer ‘mini vacation’ opportunities for prospective purchasers to visit and look at real estate and reduced rates on accommodations, golf and tennis for our customers returning to take a second look,” said Baldwin.

Why Now?
Hilton Head Island is and always has been a fertile field for investors. Traditionally, area real estate prices have increased at a rate of approximately 10 percent per year. “Real estate is like a merrygo-round. It doesn’t matter when you get on. If you stay on, you will be rewarded,” said Baldwin. “If you’re in for the long haul, this is a good time to pick up the piece of property you want to keep for some time.” According to Baldwin, the stock market was a significant factor contributing to the slow down in 2006. In 2003-2005, people were taking money out of the stock market and putting it into real estate, he explained. As investment markets improved, offering higher returns, people began placing their bets on the Dow. “With today’s market at an alltime high and mortgage rates remaining attractive, we’re probably poised for another shot of appreciation once we reduce the inventory,” he said. So far this year, sales as well as the number of inquiries have picked up significantly. “We feel confident that we’re going to have a good spring,” said Baldwin.