Summertime on Hilton Head is filled with long, languid afternoons, the smell of the sea, a line of pelicans skimming over the ocean while pounding surf breaks on the beach - the heartbeat of Hilton Head.
Loggerhead turtles are nesting now. It is an annual rite dating back thousands of years. They lay their eggs in a depression on the beach from may to mid-August. The eggs hatch from July to October. By mid-June, 89 nests had been reported with more to come, according to the seaturtle.org website. Owners of beachfront properties are cautioned to turn off outside lights from 10 pm until dawn in order for these unique creatures to find their way to the ocean and not, by being disoriented, end up on someone's lawn or in a swimming pool.
While turtles were nesting in June of 2012, a report from South Carolina Realtors showed sales were up more than 60 percent over the same time last year, with 21 percent less time on the market. These numbers reflect a much healthier market than a year ago. Buyers are making their moves and sellers feel they have waited long enough to sell. The average home price island-wide is now $653,206 (in Sea Pines the average price is $941,207). This is not to say there are not some very good buys in the lower price ranges. One house in Sea Pines that sold a few weeks ago for a low $385,000 is in a neighborhood of nice, large homes, has a lovely lagoon view with open space on one side; lagoon views from a kitchen-great room/fireplace and master suite; an open foyer, spacious interior with a separate dining room and a two-car garage. It is less than ten minutes by auto from the beach. The buyers have been vacationing on Hilton Head for twenty years. It took them less than a full day to make a decision about this house. Now they're "living the dream."
Owners of high-end properties who want to sell are anxious to complete a transaction before the end of this year because, if the Bush tax cuts are allowed to expire and tax rates go up, sellers in the high-end market could owe hundreds of thousands or even millions of dollars more in capital-gains taxes. If more wealthy property owners sell, they could drive up inventory and lower prices at the top-end of the real estate market. The market experienced a similar situation in 2010 when it was feared that Congress would raise capital-gains rates. Inventory rose and prices decreased. Families who sell a second home that they have owned for more than a year pay capital-gains on the difference between the sale price and their original purchase price, minus improvements, certain fees and other deductions. There will also be local taxes and state taxes applied to the gains. All of this combined makes a good case for some wealthy owners who see a significant potential tax savings.
The upside means more affordable upper-end homes, especially for some foreigners, who continue to purchase real estate in this country as stocks and other financial purchases weaken.
Buyers are more focused on purchasing rental properties this year as the rental market tightens. Rental rates are being pushed up. Some rental companies have prospects waiting for nice rental properties. Often a buyer can close on a property one week and rent it the next. This is a far cry from a year or two ago as economic realities have swollen the ranks of renters. According to the U.S. Census Bureau, the population of 20-34 year olds (a prime renter demographic) will grow every year between now and 2030. With a record fall in interest rates on June 19, 2012 (to 3.53%), an exciting opportunity is afforded today's buyer.
While the lazy days of summer play themselves out, residents and visitors alike gather at Honey Horn Plantation on Friday mornings to peruse the local Farmers' Market where produce has been plucked from the vine in the early morning or late afternoon before and seafood was swimming in the river only hours earlier. The exotic smell of Palm Key smoked barbecue mingles with more earthly fragrances (including a nearby pasture with two snorting horses). Other edibles are organic hen eggs, quail eggs, artisan breads, gourmet soups - and don't forget the fresh peaches for a peach pound cake or fresh peach ice cream!
