As we move into summer, the national housing market is revealing some pivotal shifts—and these trends are directly influencing activity here in the South Carolina Lowcountry. Here’s what you need to know:
National Trends Impacting Local Conditions
📉 Mortgage Rates Improve Slightly
Markets responded positively this week to a cooler-than-expected Consumer Price Index report, easing inflation concerns and prompting a rally in the bond market. This helped bring mortgage rates back in line with early June levels—welcome news for both buyers and sellers. If the bond market holds steady, we may see even more favorable rate options soon.
💼 Labor Market Softens Slightly
May saw 139,000 new jobs added nationally—slightly above expectations but revised sharply downward for March and April. ADP’s data showed just 37,000 private sector jobs created, the lowest pace in over a year. Combined with rising unemployment claims and job cuts, there’s cautious optimism that the Fed may hold interest rates steady in their June 18 meeting.
🏡 Local Market Insights: Bluffton & Hilton Head Island
📉 Buyer Caution Meets Local Opportunity
While national headlines point to economic uncertainty, the Bluffton and Hilton Head Island markets remain resilient. We are experiencing a pause in buyer urgency—not due to lack of interest, but rather a “wait-and-see” approach amid market volatility and fluctuating rates. Inventory remains historically low, which is supporting local price stability even with softer showing activity.
📈 Home Values Continue to Climb
According to recent reports, home values are still increasing modestly—CoreLogic (now Cotality) shows a 0.6% monthly and 2% annual growth nationally. Locally, well-maintained properties in high-demand neighborhoods such as Palmetto Bluff, Hampton Lake, and Sea Pines continue to attract strong interest and multiple offers if priced correctly.
🏗️ New Construction Still Limited
While new home sales nationwide jumped 10.9% in April, inventory in Bluffton and HHI remains tight. Only a fraction of local new construction is move-in ready, especially for those seeking luxury-level finishes. The shortage of completed homes supports price strength despite softer buyer demand.
🏝️ Why the Lowcountry Still Shines
Despite national jitters, Bluffton and Hilton Head Island remain top-tier destinations for second-home buyers, retirees, and those seeking a lifestyle change. With no state income tax on Social Security, award-winning communities, and natural beauty that’s second to none, the long-term demand for this area continues to grow—even during slower months.
Local knowledge matters more than ever in a shifting market.- Thomas M. Kersey
