THE STATE of the Luxury Real Estate Market
Hilton Head Island and Bluffton
LUXURY DEFINED Although there is no checklist for labeling a property as luxury, many features are common among upscale properties. Prime location, high-end finishes such as outdoor living rooms, professional-quality kitchens, customized closets, and resort quality amenities such as spa and therapy rooms, a state-of-the-art fitness studio and celebrity-style pools are often the staples of luxury living. But not every highend home is equal. Often it is location, unique features, and superior quality that separate luxury real estate from the rest. High Net Worth Individuals (HNWIs) have specific yet varying wants and needs when considering a luxury property purchase. Turnkey or move-in ready options, privacy and prime location are merely the price of entry. Desired luxury amenities have expanded and evolved and are as varied as the luxury home owners themselves. Edited from USA News.
leading edge home technology and security
MOVE-IN READY WINE CELLAR
LUX•U•RY
ZERO ENTRY AND/OR INFINITY EDGE POOL
‘LƏK-SHA(Ə-)RĒ noun 1. the state of great comfort and extravagant living “they lived a life of luxury” synonyms
THE TOP LUXURY AMENITIES AS RATED BY THE NATIONAL ASSOCIATION OF REALTORS AND REALTOR.COM
Infinity-Edge Pool, 23 McKays Point Road, Long Cove Club SC Listed by Real Estate Advisors Mark Mayer and Chris Batson
LOCATION outdoor kitchen, living and lounges
FITNESS/YOGA STUDIO AND MEDITATION ROOMS
Additional Luxury Amenities:
PRIVACY
• Main Floor and Upper Level Master Suites • Therapy Rooms for Massage and Physiotherapy • Dog Grooming Mud Rooms • Two Laundry Rooms • Tween or Grand Children Lounge
Wine Cellar, 46 Freeport Drive, Daufuskie Island SC Listed by Real Estate Advisors John Payne and Daniella Squicquero
KEY METRICS
Trends in the Hilton Head Island and Bluffton Luxury Real Estate Market Source: Hilton Head Multiple Listing Service
42 Magnolia Blossom Drive, Colleton River Plantation
For the purpose of this local market analysis, this chart shows trends in the luxury market as defined as homes that sold for over $1,000,000 as reported in the Hilton Head Bluffton Multiple Listing Service.
YEAR
NUMBER OF HOMES SOLD
MEDIAN PRICE
MEDIAN SALE/ LIST RATIO
MEDIAN DOM
2004
247
$1,525,000*
95.24
125
2005
360*
$1,500,000
95.88*
104*
2006
270
$1,500,000
94.63
162
2007
237
$1,515,000
91.21
215
2008
150
$1,375,000
89.50*
218
2009
103*
$1,500,000
90.00
259
2010
107
$1,425,000
89.96
277
2011
105
$1,400,000
90.32
280*
2012
113
$1,440,000
90.71
216
2013
126
$1,400,000
92.17
181
2014
110
$1,500,000
92.07
249
2015
118
$1,363,000*
93.14
183
2016
146
$1,375,000
92.33
138
Lowest Point in the Last 13 Years
All Time Best
DOM=Days On Market
This information was provided taken from Hilton Head Area MLS and deemed correct at the time of writing. Any changes since then are not reflected here.
Summary The Hilton Head Area luxury market is down dramatically from the pre-recession high. Home sales over $1M are down from 360 sold in 2005 to 146 in 2016, a drop of more than 59%. While home prices have not appreciated over the past 13 years, they have been relatively stable while the Days on Market in 2016 were much shorter than any of the last ten years.
KEY TRENDS
Luxury Home Design Trends and Features Adorning 2017
Edited from Inman Select
What do high-end home buyers seek and what should sellers consider? Luxury buyers look for anything but cookie-cutter. Convenience, style, and recreation opportunities make the top of their wish lists. According to Jonathan and Drew Scott of HGTV’s The Property Brothers, there are certain investments which add value to your home and others that the top 1 percent of sellers should refrain from splurging on. Good investments include a home theater room, a workout facility, and an infinity-edge pool. Sellers should avoid investing in “features” that are very taste specific or require significant maintenance to keep it functional as most other buyers wouldn’t find it desirable. According to The Property Brothers, high-end buyers are looking for: • • • • • • • •
Single-story homes around 5,800 to 7,000 square feet with a 6-plus car garage Designer-styled kitchen with commercial appliance upgrades Integrated, top-of-the-line home technology and security Smart house automation such as LED wall pads with light and thermostat adjustment capability Voice activation systems like Alexa and Google Home Oversized walk-in closets with built-in organization Collapsible window wall joining the outdoor and indoor living spaces with an fully-functional exterior kitchen Spa-like master bathrooms with steam showers, body jets, touch-less plumbing fixtures, heated toilet seats, and electric bidets
Hilton Head Island and Bluffton Attract Global Tourists and Buyers According to the Hilton Head-Bluffton Chamber of Commerce, our area’s top international markets are Canada, the United Kingdom, and Germany. The Chamber has stated it will continue to market to Canada, Germany and top US markets to attract both the drive and fly markets. International travelers represent a growing and attractive market for Hilton Head Island and Bluffton. Engel & Völkers has real estate shops in 37 countries and is especially dominant in the European and Canadian luxury markets. Anthony Hitt, Engel & Völkers North American CEO states, “Expanding the Engel & Völkers brand to the Hilton Head area was a must as we saw a luxury market that is attractive to investors and high net worth individuals around the world. It is a privilege to be the first and only truly global company to serve such a dynamic and growing area.”
Four Reasons Why High Net Worth Individuals (HNWIs) Still Invest in the United States Edited from Inman Select
ECONOMIC OPPORTUNITY
POLITICAL SAFEGUARD
Real estate is a strong component of a wealth creation and capital appreciation strategy.
Despite the unprecedented wealth being created in the BRICs (Brazil, Russia, India, and China), many High Net Worth Individuals have an uneasy feeling about the political environments.
ECONOMIC SAFEGUARD
PERSONAL BENEFITS
According to a survey by The Association of Foreign Investors in Real Estate, the US represents the best place for capital appreciation.
While adding to portfolio diversification, a luxury home offers personal enjoyment, unlike many other investments.
23 McKays Point Road, Long Cove Club
19 Red Cardinal Road, Sea Pines Plantation
42 Magnolia Blossom Drive, Colleton River Plantation
29 Ribaut Drive, Hilton Head Plantation
To view additional luxury homes online, visit HiltonHeadBluffon.evusa.com and select “Luxury” under Find a Home.
Your Luxury Home Deserves Luxury Expertise Luxury real estate sales require luxury expertise and experience. Engel & Völkers was founded in 1977 in Hamburg, Germany, and is now the dominant luxury European real estate company. The brand expanded to North America in 2006, exclusively in upscale markets including Beverly Hills, Manhattan, Naples, Vail, Atlanta, and Toronto. What sets Engel & Völkers apart from traditional local brokerages is that it is a truly global luxury company with a connected referral network, industry leading technology tools, and distinctive marketing. By trusting your luxury home sale to Engel &Völkers, you will receive the many benefits Hilton Head and Bluffton’s only global luxury real estate brand offers:
Global and North American Exposure
• Listing on luxury portals including JamesEdition.com, MansionGlobal.com, and WSJ.com (Wall Street Journal) • Listing on over 900 real estate websites plus 85 global sites, translated to over nine languages • ShopTV (shown in over 119 Engel & Völkers shops in North America) • Feature listing to top agents in key markets including Atlanta, Charlotte, Savannah, New York, New Jersey, Boston, and Toronto
Local Marketing and Concierge Service • Complimentary consultation with a discrete, expert real estate Advisor as well as interior and exterior stylists • Complimentary home preparation assessment and recommendations by a professional property manager • Premium marketing materials that reflect the quality of the property with ongoing communication and reports • Local print and digital media in addition to exposure at local High Net Worth Client events
To arrange a private consultation with a luxury real estate Advisor, please contact Rick Turner, President of Engel & Völkers Hilton Head Island and Bluffton at 843-816-0796 or Rick.Turner@evusa.com.
Engel & Völkers Hilton Head Island - Bluffton
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