2015 Collins Group Realty State of the Market Report 1 | Page 7

Looking ahead, the following are some trends we are watching as we expect
them to play out in the local Hilton Head Island marketplace:

Downsizing & The Return of the In-Law Suite

Did you know that 17% of baby-boomers now report being retired - up from 10%
in 2010? This massive demographic is driving real estate activity on both ends of
the spectrum. On the one hand, baby-boomers are selling and looking to
downsize, moving closer to family/friends or into retirement communities. On
the other hand, we are also seeing a growing trend of families living together
under one roof, buying LARGER homes and thereby re-generating interest in
integrated-yet-separated living/bedroom space for parents/in-laws.

Telecommuting from Paradise

You don’t have to be a Millennial to be committed to on-line commerce and
convenience. In fact, a growing number of people are trading-in their
brick-and-mortar office for the opportunity to “base” out of a location like Hilton
Head that affords a superior lifestyle for themselves and their family. To that end,
the investment group that is purchasing the Fresh Market Shoppes recently
indicated that their focus is to appeal to HHI’s increasing population of
lifestyle-focused, active families/residents, including telecommuters, that will soon
be calling HHI home! In that vein, Hargray has just begun installation of their
$10MM+ fiber-to-the-home gigabit service on the bet that more and more
customers/businesses will be demanding this super-speed digital technology.

2016
hilton
head
island
outlook
by

Chip Collins, Owner and
Broker-in-Charge

Election Year

Certainly not specific to the Island or the Lowcountry, 2016 being a Presidential
election year promises to interject some level of instability/uncertainty into the
mix. For some, it could spur activity and movement in the real estate market,
while others may elect to “sit the fence” until they have a better feel for future
direction, possibly missing out on some good opportunities.

Momentum on Our Side

2015 was an important year of market gains that sets the stage for 2016 as
another year of progress across the Island. Increased home sales will be paired
with more new-home builds, more home renovations, plus notable
commercial re-development, all adding vitality and newness to the overall
marketplace. Many buyers shop regionally before selecting a specific town/area,
and HHI is responding to the need to shine brightly above the Southeast-coast
competition.

POA-Based Marketing

In an effort to attract quality buyer-prospects to their specific communities, look
for more Property Owner Associations to take an active role in increasing the
awareness and appeal of their community to the broad real estate market. Be on
the look-out for more neighborhood-specific “branding” print ads, TV
commercials and the like in 2016. After all, there certainly are a lot of buying options for any one prospect on HHI, and the race is on for communities to
stand-out and be noticed. At Collins Group Realty, we’ve been honored to serve
on various POA marketing advisory boards, and it is exciting to look for the
impact their efforts will have on the local marketplace.

The Trouble with TRID

The implementation of federally-mandated real estate closing guidelines and
disclosure forms (known as TRID or “Know Before You Owe”) began effective
10/03/15, and they are causing some upset in on-time closings in the local market.
While these guidelines/forms are not expected to affect market performance, per
se, they’ll play a role in requiring buyer and seller (plus attorney, lender and
Realtor) patience while the dust from this substantive change settles and local
closing processes and procedures hit stride.
This is an important and pivotal time in the Hilton Head Island real estate
market as year-over-year improvements will slowly-but-surely have us back into
a rewarding and robust marketplace once again. 2016 should readily continue
this positive trend, and we are excited to see how the year develops, doing our
part to make it another great year of assisting clients on this beautiful Island!

State of the Market

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