Inventory Will Stay Low – Sellers are staying put and buyers aren’t giving up, so I expect inventory to remain low in 2022.We are so upside down that I anticipate it will take a significant amount of time, or a significant event, for this market to balance out. Communities like Hilton Head Plantation, which for the last 15 years have had anywhere from 80-110 homes on the market at any given time, currently has less than 5 homes on the market. We have a long way to go.
Prices will edge up – I don’t expect big increases in 2022 but tight supply naturally keeps prices strong, so I expect that trend to continue.
Interest rates will rise – Higher interest rates have very little direct effect on our market but will effect first time homebuyers who are planning to buy the homes in other cities that our buyers are leaving to come here.I believe there is enough demand that we won’t see higher mortgage rates having a substantial effect on our real estate in 2022.
Off Island property sales will be Hot – Many buyers have given up on Hilton Head and are making their way to the outskirts of Bluffton and into Hardeeville where new construction is going strong.Developments like 4 Seasons, Palmetto Bluff, Sun City, Margaritaville, New Riverside and the communities in the Argent tract such as Riverton Pointe will be the focus for 2022.