In South Carolina's Hilton Head and the adjacent Beaufort market, luxury homes start at $1 million to $3 million, with oceanfront properties and homes in the Palmetto Bluff community ranging from $4 million to $10 million, says Alison Melton, Managing Partner of The Agency Hilton Head, Savannah and Beaufort. “Properties in the $1 million to $3 million range sell fast and are hard to find, especially because investors are looking for those homes alongside second-home buyers and pre-retirees or retired buyers,” Melton says. “We have 10% to 15% fewer listings this year than last year.”

One reason for Hilton Head’s popularity is that prices seem reasonable to buyers from the Northeast and California, she says. “But in 2026, our market has slowed so far, in part because buyers were hoping mortgage rates would drop, plus the February weather meant a lot of people postponed trips here,” Melton says. “Buyers seem to be slow to make a decision, waiting to see what will happen with the economy and to see what else becomes available.”

Melton says even cash buyers watch interest rates as an economic indicator, plus some of them are worried about their stock portfolios. “Every buyer wants a deal, but sellers are still pricing like it’s 2021,” she says.

Inventory remains low, in part because homeowners are locked in with low interest rates and don’t want to increase their payments with a higher mortgage rate in a new home, Melton says. In addition, some sellers are in a wait-and-see mode and worry about finding their next home.

A big issue in Hilton Head is that many homes are in private clubs with initiation fees of $125,000 to $300,000, plus $30,000 in annual fees, she says. “They don’t want to have to pay a new initiation fee in a new community,” Melton says.