Certainly, we have witnessed an increase in Hilton Head real estate sales activity as well as in Bluffton over the last few weeks. I’ve been asked if this is a sign of recovery or a short term anomaly in the market? I believe this increase in real estate activity is the first sign of recovery, a capitulation if you will. I also believe, it is going to take a long time to “turn the ship around”. I‘m of the opinion these buyers who have recently purchased real estate have always been there, but were not prepared to buy at previous pricing levels. Once we saw significant pricing adjustments in the Hilton Head and Bluffton Real Estate Markets, these buyers finally reacted. In this market, time is a buyer’s friend. Additionally I believe today, there are more buyers “waiting in the wings” for their perfect property to be priced correctly. But don’t be fooled, this pool of buyers is significant but not limitless. Once these buyers are "satisfied” I believe sales will slow again, although not to the level we witnessed in the 3rd and 4th quarter of 2008. Sellers you have a window, a limited period of time to sell at today’s value, before our market takes its final dip this winter and into the first quarter of 2010. I believe this final dip will take our average property values down another 10% to the bottom we so desperately need to reach. Once Hilton Head Real Estate finally reaches its market’s bottom, we’ll enter an extended period of zero appreciation as we consume the mountain of inventory in front of us. Friends, we are still at least two years away from an appreciating market and once we see appreciation, it is sure to be measured. The Final Dip To me, the final dip is as obvious as the beauty of the Lowcounty. It’s the wave of foreclosures that will wash across our area. The signs are all there, nothing can stop the wave and we need to be prepared to weather it. For the first 6 months of 2009, The South Carolina Supreme Court placed a temporary moratorium on thousands of foreclosure sales on properties guaranteed by Freddie Mac, Fannie Mae or any other company that has signed on for the Obama Administration’s Making Home Affordable modification plan. The ruling marked the first statewide court-ordered foreclosure freeze and aimed to allow servicers additional time to evaluate borrowers for eligibility in the program. Fannie Mae initially requested the injunction, but chief justice Jean Toal issued an order placing a moratorium on properties backed by loans owned or guaranteed by both agencies and a variety of other servicers participating in the Administration’s program (anyone who took TARP money). The moratorium expired on May 28, 2009. The problem is, this action did almost nothing in our area to stem the tide of foreclosure and only delayed the inevitable. This delay along with the additional delay created by the summer’s influx of rental income for investment homeowners has us staring at a wall of foreclosures about to tumble onto the Hilton Head and Bluffton Real Estate markets. When this happens, sellers will be forced to compete with bank owned property to achieve a sale. The seller’s objective will be sell their homes for as much money as they can. The banks objective will be to get the non-performing asset off their books. Remember, the banks have the federal government on their side and our tax money in their coffers, they will sell off their inventory. The Foreclosure Proof. At the last foreclosure sale on August 3rd, 95 properties in Beaufort County were foreclosed on. 72 of which were in Hilton Head (35) and Bluffton (37). Next month, September 8th, a staggering 240 properties in Beaufort County are set for foreclosure. 195 of which are on Hilton Head (132) and Bluffton (63). Of the Hilton Head and Bluffton Properties, four have outstanding mortgages in access of $2 Million, eleven between $1 and $2Million, nineteen between $500K and $1Million and fifty-five between $200K and $500K. This is the beginning of a wave that will crest and crash over the next few months. Once the banks take back these properties, it typically takes 60 days for the properties to get listed with a Realtor. If you’re a seller, you must get your property under contract before this happens. Hilton Head Real Estate will rebound, of this I have no doubt, but we must be realistic about the timing. If you’re a seller, seize this opportunity. Thank you for reading my post. I passionately study the Hilton Head Island Real Estate market and am completely committed to helping both buyers and sellers navigate it. Please don’t hesitate to contact me to discuss your situation. My office number is (843) 341-5660, my mobile is (843) 384-3169 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it I am a Certified Distressed Property Expert and specialize in Loss Mitigation.