Meeting at the End of the Rainbow on Hilton Head Island

Harbour Town at Twilight

An estimated 28,000 celebrants met “at the end of the rainbow” on St. Patrick’s Day for Hilton Head’s 30^th annual St. Patrick’s Day Parade.

The south end of the island was smothered in shamrocks along the parade route, which began at the beach and continued along Pope Avenue, ending at the Sea Pines Circle.  There was green beer, green jackets and hats, over 100 colorful floats, vintage cars, the Parris Island Marine Corps Band, the sleek, handsome Budweiser Clydesdale horses and a smiling Grand Marshall, Brian Carmines, owner of the iconic seafood restaurant, Hudson’s.

Living on Hilton Head this time of year is like living in a garden.  It is a perfect backdrop for numerous spring festivities: the Wine and Food Festival, WINGFEST and the annual Hilton Head International Piano Competition, which brings people and contestants from all over the world.  The event is put on by The Hilton Head Symphony Orchestra.  It alternates between the Young Artists Competition for ages 13 through 17 one year and the Adult Competition for ages 18 through 30 the next year.

Harbour Town, bordered by Calibogue Sound, will be the setting for the 45^th annual RBC Heritage presented by Boeing on April 15-21.  The field of 144 players will be competing for the top prize of $1,044,000 from a purse of $5.8 million.

There will be bagpipes, kilts and the boom of cannon fire at the traditional Heritage opening ceremonies.  Last year’s winner, Carl Pettersson, will drive the first golf ball near the 18^th green, flanked by participants wearing period costumes.   Heritage Classic Foundation members will be wearing their “plaid,” the tartan jackets a symbol of the sport’s Scottish heritage.  The pageantry speaks to the excitement, color and spirit of the tournament which draws top players each year.  It is one of four invitational tournaments on the PGA Tour and prides itself on smaller, stronger fields.  It brings over $83 million a year to the state of South Carolina.  The Heritage Foundation has raised more than $23 million for charity since 1987. 

Heritage fans converge on Hilton Head by car, boat and plane.  Private planes and corporate jets stream in by the hundreds, lining the airport’s parking apron within a wing tip of wild yellow jessamine that blooms in the woodlands near the runways.  Long, sleek yachts nose into the Harbour Town Yacht Basin; larger yachts anchor out in Calibogue Sound.  Many will be decorated with colorful flower arrangements.  Guests will sip libations and enjoy southern hospitality at its finest.

The Harbour Town Clubhouse is expected to be torn down after the 2014 RBC Heritage and a new clubhouse is expected to be built before the 2015 RBC Heritage, if plans are approved.  That, plus the $15 million Sea Pines Resort is spending on another new clubhouse which will replace the former Plantation Club.  Plans are also being finalized for a new Sea Pines Beach Club, complete with a restaurant and event room overlooking the Atlantic Ocean.  The resort has already spent close to $30 million dollars in the last five years upgrading amenities.  The recently renovated Inn at Harbour Town, a boutique hotel, received the 2012 Forbes Four-Star Award.  Steve Birdwell, president of Sea Pines Resort, was quoted recently by local media as saying, “We are a maturing community that needs improvement. . .other resorts have invested in their properties, and we need to be prepared for the future as well.  We are excited about enhancing the resort experience for our guests and providing amenities they are looking for.”  You can believe these improvements will impact on our property values!

Currently we are seeing some of the best real estate values we’ve seen in years.  There are numerous houses and villas that are simply great buys!  One is a 5 bedroom, 5 bath townhouse on the 18^th fairway in Harbour Town with gorgeous views of Calibogue Sound and spectacular sunsets (asking a low $1,195,000).  Interest rates are still low and good inventory is available.  The NAR (National Association of Realtors) recently reported the fastest sales pace since November of 2009.

The South Carolina Lowcountry is one of the nation’s five best markets to buy a home, says a CNN money report, based on data gathered by Realtor.com. “This large metro area in southern South Carolina includes old towns like Beaufort, as well as more modern developments like the resort communities on Hilton Head Island,” the post says.  The history and charm without the hassles of larger cities is a big factor.

Beaufort is only an hour’s drive from Hilton Head, as is Savannah, Georgia.  Charleston, S.C. is about a two-hour drive. 

In addition to millions of dollars being poured into Hilton Head facilities, Google has announced it is investing another $600 million in addition to the $600 million it invested a few years ago in the company’s campus at Moncks Corner, bringing their investment in South Carolina to $1.2 billion.

To contact Diann: diannwilk@roadrunner.com

A BREATHTAKING SPRING ON HILTON HEAD ISLAND

Photo courtesy Mary Pracht

You can’t imagine how beautiful it is on Hilton Head in the pre-dawn hours when soft light begins to illuminate old oak trees trailing Spanish moss, tropical Palmetto trees - back-lit like an elegant stage set. While the sun rises over the ocean the world is quiet and peaceful; the visual effects will take your breath away.

On Friday, February 15, 2013 the Wall Street Journal Magazine published a fascinating article, “The House That Gucci Built.” The owners are Domenico De Sole and his wife, Eleanore. He is the former empire builder and CEO of the Gucci Group. These world travelers vacationed on Hilton Head for years before building an oceanfront home and moving here permanently. A year after retiring from the Gucci Group, he and Tom Ford joined forces in 2005 when De Sole became chairman of Tom Ford International.

In the magazine article there is a stunning full page photograph of the owners standing on a terrace overlooking an L-shaped pool. He is tall and debonair in black-tie, flanked by his wife who is stately and svelte in a long, straight gown. A handsome couple, they are living the life on Hilton Head. The 69-year old Domenico rises at 5 a.m. and strolls along a covered walkway to a spacious guest house on a second-row ocean lot where he has a home office. From there he runs a major fashion company, Tom Ford International, which now has 19 free-standing stores in 17 countries. A flagship store recently opened in Beijing; a new London store will open in the fall.

The full page photograph of the house shows a soaring vertical expression, a structure with lofted ceilings, a curved ceiling in the great room (to reflect the light) with large expanses of glass – perfect for their art collection. When he travels he jets to Milan, Hong Kong, London, wherever the requirement is, departing from the small, four-gate Hilton Head Airport where the fresh smell of pine greets travelers.

The article mentions asking De Sole if he is the only Roman on the island – actually, one of our favorite Italians is Ida Zeger, who is married to retired attorney Warren Zeger who bears an uncanny resemblance to actor Kevin Costner. The Zegers live on Baynard Park Road in Sea Pines where, instead of watching oceanfront sunrises, they enjoy endless views of Calibogue Sound and spectacular sunsets. Parties there take full advantage of the views.

Hilton Head has always attracted notables. Having chronicled social events off and on for years in local newspapers and magazines, I think of early hero-residents such as Air Force chief General Nathan Twining and Lt. Gen. Edward J. Timberlake, commander of the U.S. Air Force’s Continental Air Command. Historical novelist John Jakes once said that the island was a place where islanders left their medals at the bridge. He also said the island was one of the most beautiful areas he had ever seen, that everything good was put here by God, or nature, not by a developer or a tourism promoter. He and his wife, Rachel, lived here for 32 years.

Other high profile residents, second home owners and visitors have included Home Depot co-founder Arthur Blank, currently the owner of the NFL’s Atlanta Falcons; Michael Jordan, former NBA player who owned a house in up-scale Wexford; fiction author Patricia Cornwell who once owned two large oceanfront homes here at the same time (and would fly in piloting her own airplane); former New York mayor John V. Lindsay, TV personality Gary Moore, NBC’s Frank Blair, J. Edgar Hoover’s right hand man Deke Deloach. Visiting aboard their yachts in the Harbour Town Marina were Walter Cronkite, Joseph E. Levine, Jackie Gleason. The annual Renaissance weekend, hosted by islanders Phil and Linda Lader (Phil became the U.S. Ambassador to Great Britain) drew CEOs and intellectuals from across the country, including President Bill and Hillary Clinton (she became our U.S. Secretary of State).

There have also been well known musicians, such as John Mellencamp who has owned oceanfront homes; Jimmy Buffet who visited and jammed with Mellencamp at a favorite watering hole in Harbour Town , The Quarterdeck. Even Gregg Allman of the Allman Brothers brought his bride Cher to visit second home beachside owners Phil (Capricorn Records) and Peggy Walden (the coconut vine was really rumbling over that visit). One of the younger singers, songwriter and composer (“Barely Breathing”) Duncan Sheik spent part of his growing up years on Hilton Head as did another up-coming musician Trevor Hall, the talented son of Jeff and Wendy Hall. Trevor is noted for his songs "Other Ways" (which was part of the Shrek the Third sound track) and "Brand New Day", among many others. He spent his last two years of high school boarding at Idyllwild Arts Academy in California where he met many international students. His senior year he was signed by Geffin and later by Vanguard Records. He is currently touring.

We’re having an early springtime explosion of real estate activity. Inventory is down. In Hilton Head Plantation some houses in the $300-$500,000 range are selling almost as soon as they are listed. Buyers slow to make a buying decision are left in the dust. One new listing called a “showhouse” is priced at only $599,000 (make an offer).

The South Carolina Real Estate Association’s year-end report shows the number of home sales in the Hilton Head Island area have increased by more than 20%, a larger jump than any other part of the state. However, prices are still low, as are interest rates, making this an ideal time for the smart buyer to step in. Even the Wall Street Journal reports that in Vail, Hilton Head and Palm Beach foot traffic is up by at least 30% this year.

Several days ago Steve Kroft of “60 Minutes Sports” was here, filming and interviewing the architect of the Harbour Town Golf Links, Pete Dye on the 18th fairway. The interview is to be shown on "60 Minutes Sports" in July.

Some interesting golfers with huge fan bases have committed to play in the upcoming RBC Heritage presented by Boeing on April 15-26. Since the Heritage Classic Foundation, the general tournament sponsor, was founded in 1987 it has donated more than $23.5 million to hundreds of non-profit organizations. A recent Clemson University study revealed that the golf tournament brings in over $83 million a year to our area. For tickets, you can go online to rbcheritage.com/tickets. If you are unable to come to the island for this popular event (which has been compared to one big tail-gate party) it will be televised on Thursday and Friday on the Golf Channel and on Saturday and Sunday on CBS Sports.

Tag lines: Hilton Head lifestyle, nature, Gucci house, John Jakes, Patricia Cornwell, RBC Heritage Golf, Bill and Hillary Clinton.

Showers of Stars Fell Over Hilton Head Island

Adding to the excitement of the holiday season were meteor showers!  As the Earth crossed the orbital Temple-Tuttle bits and pieces from this comet burned up as Leonid meteors in the Earth’s upper atmosphere.

The Leonid shower produces some of history’s most spectacular displays.  Many islanders, as well as other earth-bound creatures, were up early to witness the event. The showers are easily observed over Hilton Head, unlike cities where tall buildings and an abundance of lights block the stars.

Holiday productions such as “The Nutcracker” enchanted viewers; Christmas parties were in abundance.  One in particular creates a special ambience each year.  It is hosted by Kate and Russ Keep, popular, long-time islanders who enjoy entertaining.  In some homes it is easy to see “pride of place” manifested in the way things are done, as well as great attention paid to detail.

For this annual party, guests entered a private courtyard through large wrought iron gates decorated with entwined vines of colored Christmas lights.  A stroll past blazing torches led into a home decorated with live greenery: greenery swags caught with red bows at windows, a large beautifully decorated Christmas tree, a fire burning in a fireplace lined with antique metal fire plates depicting scenes of gaiety.  The plates reflect the heat out into the room, an important feature before central heating.  Servers offered champagne and later, passed trays of hors d’oeuvre.

Even a cursory look at this home tells the viewer that the owners are incurable collectors.  World travelers, they have a fascinating collection of treasures:  Flemish tapestries hang on walls; antique furnishings add a soft, burnished glow.  There is a Tuscany wine-tasting room complete with stucco-swiped walls and old wooden ceiling beams; a statue of Bachus, the Roman God of wine, looking down from high in a corner with his horns and hoofed feet.  In the center of the room is a “wine jail,” a wrought iron Spanish-looking safe holding a gross of bottles under lock and key. 

On the rear patio, pine logs burned popping and shooting up sparks from a Chiminea, warming the crisp but still mild air.  Guests like to gather here, under the stars, near a Koi pond and a bubbling waterfall.  Beyond is a natural wooded area and a mature stand of Black Bamboo.  Later, after a sumptuous buffet featuring fried turkey, Kate played her mother’s Baby Grand piano, which she learned to play as a young girl.  When guests finally departed they were filled with Christmas spirit!

International travel is impacting the United States.  The National Association of Realtors Global Research Report for 2012 reports that international buyers purchased $83 billion dollars of U.S. real estate last year.  Hilton Head has been a prime destination for international travelers for many years.  We’ve had many buyers of island properties from other countries, especially England.  The island is a top destination for Canadians who comprise our Number 1 market in sales to international buyers.  Sales are up 24 percent of international sales, up from 11 percent in 2007.

Nancy Kemeny was on-island from London, England before Thanksgiving.  Her husband, Tom, stayed in their London home to attend to business while Nancy enjoyed their Hilton Head home, which they have owned for many years.  The family later met at another home in Barbados for Christmas.

Dana and Diederik Advocaat, accompanied by their teenaged sons Alexander and William flew from their home in London, England to spend the holidays on Hilton Head.  The family usually vacations here in the summer and has for many years.  They plan to retire here.

Katherine and James Kapps enjoyed their second “retired” Christmas in their beachside home.  Long-time property owners, they moved to the island from northern Virginia.   Their close friends, the Shirley Beavers, have also moved here and live a couple of houses away from the Kapps!  Katherine Kapps’s sister, Jeannie Lawrence and her husband, Mike, live not far away.  They moved from their Nashville, Tennessee home many years ago to enjoy the island lifestyle.  In the “small world” department, Jeannie’s childhood friend from their early days growing up in Greensboro, N.C., Andy Sonfield and her husband, Bob, live on the same street as Jeannie and Mike!

Bloomberg Business reports that home prices climbed more than forecast in October, indicating a rebounding real-estate market that will bolster the U.S. Economy for the first time in seven years.  On Hilton Head we’re still seeing cash buyers coming into the market, purchasing big-ticket properties as well as lower priced inventory.  One of the most popular price ranges appears to be the $500,000 range but $3 million to $6 million isn’t unusual either.  Regardless of who is buying or what the price is, the purchaser finds the restorative power of Hilton Head an added bonus.

Butterflies are Free - on Hilton Head Island

The great annual butterfly migration to our island usually begins in September, a harbinger of autumn.

On September 11, 2012, the temperature on Hilton Head was 81 degrees with clear blue skies and gentle sea breezes. My first butterfly sighting was a fluttering group of yellow Sulphers, feeding on a clump of yellow hibiscus blossoms. The Sulphers were followed by the colorful Monarchs with their black-tipped and veined orange wings, then the Viceroys and the Gulf frittlary. The silver winged Fritillary arrived, flashing silver under orange-spotted wings. There are many other species, including the dramatically beautiful Eastern Tiger Swallowtail with its jewel-like gold and black tiger streaks anchored by dazzling blue pearl-size dots bordering the tail. Some of these gentle, fragile creatures are en route to a small province in Mexico. They feed here on flowering plants, laying 3-4 egg broods. In the spring hatching butterflies wing north.

There is a palpable feeling of excitement in our soft, sea air. Change is obvious in the world of real estate, causing much chatter along the "coconut vine" with agents exulting over a number of happenings: another oceanfront home has gone under contract. This one was priced at $7,200,000. That makes nine oceanfront sales (Three are "pending") in the past nine months just in Sea Pines (I don't have room in this blog to give you island-wide statistics). After three long years of soft sales, we're seeing very encouraging trends emerging in our market. For instance, a new "spec" house (6th row ocean/golf views) priced at $2,495,000 is barely framed but it is under contract! This tells us that buyers want new construction and are willing to pay for it. We have seen very few "spec" houses in the past few years because lenders were not interested in risking funds. The "spec" business was virtually shut down unless someone with deep pockets would fund a "spec" project. Builders are reporting seeing the best sales levels since July 2006 - six long years. Often we are asked by a prospective buyer if there are still any "deals" around. They have to be gently reminded that our pricing is at 2003 levels, which is already a very good deal! Most of our sold properties are within 10% of the asking price.

Some ask about "flipping". They want to know if we are seeing any properties being "flipped" for a quick profit. I suppose that depends on what you consider a quick profit. Not long ago I noticed a very nice lot in Harbour Town with partial views of Calibogue Sound (a nice view amenity) priced under $400,000. It sold for $350,000 - a great buy. It was immediately put back on the market for sale. Several months later it sold for $450,000. Not a bad short term investment for someone's portfolio and not a bad profit but flipping often depends on a buyer listening to his real estate agent's information and expertise in our market, then having to be prepared to act quickly. No agent is going to tell you purchasing anything is not without risk. They can only give you information that may or may not assist a prospective buyer. It has been my experience in my real estate life to learn that some people can make quick decisions (such as doctors) and others cannot or do not. (Dare we say lawyers?) Right now there are some unusual and unique opportunities available that I have been researching for a customer/client whom I've sold to and listed property for before. He and his wife are very bright and very detail oriented. They have been very successful not only in their primary business but in their real estate investments. They are creative thinkers.

Money seems to be pouring into Hilton Head. The Westin Hotel at Port Royal Plantation (north end of the island) has plans on the drawing board for a $30 million renovation; the Sonesta Resort (formerly the Crown Plaza at Shipyard Plantation near Sea Pines) has announced it will undergo a $30 million renovation of its 340 guest rooms and its public spaces in addition to adding a spa. Everyone seems to be adding a spa. Big business, spas.

Three other Hilton Head beachfront hotels, Holiday Inn Oceanfront (now named The Beach House), Hilton Head Marriott Resort & Spa and the Omni Hilton Head Oceanfront Resort have already either undergone or announced major renovations. Our local tourism officials say this activity heralds a new era for the island's main economic driver, increasing property values and investment.

The Sea Pines Resort has announced plans for a new Heron Point (Pete Dye designed) and Ocean Course clubhouse. The 16,000 square foot clubhouse will be sited where the Plantation Club is now. Our family was Charter Members of the club and have many fond memories of it. It will be torn down after a final October remembrance celebration. The estimated cost of the new facility is $12 million. There will be 2,000 square-feet of meeting/function space. It will provide a premier golf experience for property owners and visitors.

By Labor Day weekend, summer was officially over. The sun had set on the best summer rental season since the beginning of the economic downturn. Rentals were up 12-15% for many rental companies. Properties were selling again. The 32nd annual Hilton Head Island Celebrity Golf tournament welcomed around 30 celebrities who played golf (some don't even know how to play golf but everyone has fun) on three fine area golf courses. Song-writer Paul Williams was present for the occasion: "Rainy Days and Mondays," "You and Me Against the World," "We've only Just Begun," ended in raising more funds for children's charities (over $4 million to date) and gives the public the opportunity to play golf with the celebrities.

Coming up will be polo at Rose Hill Plantation on October 14th and on November 3rd at Honey Horn Plantation (where the wonderful Farmers' Market is held each Friday in season from 8:30 a.m. until 1 p.m.) a signature annual event on Hilton Head, The Concours d'Elegance. Residents and visitors will see some wonderful antique automobiles being driven around the island near old oaks, tall palmetto trees and still-blooming magnolias. It was recently named to the Southeast Tourism Society's Top 20 Events list.

Before the last butterflies fluttered away from the island, acorns began falling.

Plantation Club on Dwellable

Hilton Head Island's Changing Tides

As the summer winds down on Hilton Head, vacationers begin packing up to make the trek back to homes in other states. Some will have come from South Carolina or other nearby areas. They are called "the grits and gravy crowd." Vacationers who visit in the winter when it is too cold to get on their golf courses at home are called "the jet set". At the end of summer, the younger set have finished such activities as Crabby Encounters, Shark Tooth Necklace making, Sand Dollar Painting, Tie-Dye Fun, beaching, fishing, dolphin cruises, evening campfires in the Sea Pines Forest Preserve where ghost stories shiver young timbers and of course our favorite Alabama produced singer Greg Russell's dynamite concerts under the Liberty Oak near sleek yachts that rock gently in the famous harbor's placid waters. The tall, candy-striped lighthouse stands quiet guard over this colorful, fun, beautiful place.

Hilton Head's strong home sales in 2012 continued in July with a greater improvement rate over July 2011 sales than any of the state's 16 regions. We've seen four years of continued growth since the market bottomed in 2008. In Sea Pines alone, comparing the first six months of 2012 to all of 2011, residential sales are up 13%, villa sales are up 62% while lot sales are up 42%. Since there are so few lots available for sale, the best having been built on years ago, many buyers simply purchase an older home and long-term rent it until they are ready to tear it down and build. If it is close to the beach and in good condition, it can short-term rent by the week. Long-term rental properties are in short supply on the Island so this is a great time to buy (lower prices and low interest rates).

With 104 closed home sales in Sea Pines (if I seem to focus on Sea Pines, it is because I've lived here, by the beach, for over 40 years) in the first 7 months of 2012, the average price is up 5% to $926,728 compared to $880,120 a year ago at this time. The villa market has always been a hot market on Hilton Head until a couple of years ago. Now villa sales are up dramatically all over the Island with Sea Pines seeing a huge jump with 74 sales compared to 46 last year. Currently there are only 114 villas listed for sale compared to 161 in 2011. Naturally the lower priced inventory has been selling resulting in lower priced villas being cleared out. The same is true with homes although now we are seeing higher end homes selling, many for cash. Buyers feel that Hilton Head is a good place to put their money. Foreigners obviously feel that way since sales to them in this country have increased 24% in 2012 reaching $82.5 billion and growing. We've seen buyers from Russia, Italy, England, Germany, etc. coming to the Island.

The Hilton Head Town Council has been considering plans to use town land and money to create a new commercial district in the Coligny area near the beach. Plans first included a hotel, parking garages, a new park and new plazas with outdoor cafes, shops and restaurants (some of which are already there). Condominiums or apartments would occupy a second story above the retail space. Now comes a decision not to subsidize or support redevelopment of viable existing commercial enterprise or install public improvements. Instead, funds from a tax-increment finance district will be used to improve parking in the Coligny area, adding green space, upgrading nearby streets and establishing a presence for the University of South Carolina Beaufort's new center for event-management and hospitality training. There is also a new University of South Carolina Beaufort Gateway Campus across the bridge from Hilton Head, near Sun City that includes a nursing school

The current Hilton Head center is operated by USCB in space rented from Sea Pines and offers credit and noncredit courses as well as certificates and training for industry professionals. About 60 USCB students were enrolled for the spring semester, and the center has trained more than 360 hospitality workers. Chancellor Jane Upshaw calls it "a wonderful success" and says, "We have plans to expand the program to include coastal ecology, island environment and sustainability and offer more seminars."

She said the university had discussed plans for a campus on Hilton Head that would serve about 200 students and offer extended learning courses for residents and retirees through Osher Lifelong Learning Institute. The plan would have a sustaining appeal to seniors with on-going learning for younger people as well as filling unused rental units during the off-season. The plan accomplishes giving the Coligny area a unique identity while recognizing why it is residents live there, which is because of the forest and the beach.

The Heartbeat of Hilton Head

Summertime on Hilton Head is filled with long, languid afternoons, the smell of the sea, a line of pelicans skimming over the ocean while pounding surf breaks on the beach - the heartbeat of Hilton Head.

Loggerhead turtles are nesting now. It is an annual rite dating back thousands of years. They lay their eggs in a depression on the beach from may to mid-August. The eggs hatch from July to October. By mid-June, 89 nests had been reported with more to come, according to the seaturtle.org website. Owners of beachfront properties are cautioned to turn off outside lights from 10 pm until dawn in order for these unique creatures to find their way to the ocean and not, by being disoriented, end up on someone's lawn or in a swimming pool.

While turtles were nesting in June of 2012, a report from South Carolina Realtors showed sales were up more than 60 percent over the same time last year, with 21 percent less time on the market. These numbers reflect a much healthier market than a year ago. Buyers are making their moves and sellers feel they have waited long enough to sell. The average home price island-wide is now $653,206 (in Sea Pines the average price is $941,207). This is not to say there are not some very good buys in the lower price ranges. One house in Sea Pines that sold a few weeks ago for a low $385,000 is in a neighborhood of nice, large homes, has a lovely lagoon view with open space on one side; lagoon views from a kitchen-great room/fireplace and master suite; an open foyer, spacious interior with a separate dining room and a two-car garage. It is less than ten minutes by auto from the beach. The buyers have been vacationing on Hilton Head for twenty years. It took them less than a full day to make a decision about this house. Now they're "living the dream."

Owners of high-end properties who want to sell are anxious to complete a transaction before the end of this year because, if the Bush tax cuts are allowed to expire and tax rates go up, sellers in the high-end market could owe hundreds of thousands or even millions of dollars more in capital-gains taxes. If more wealthy property owners sell, they could drive up inventory and lower prices at the top-end of the real estate market. The market experienced a similar situation in 2010 when it was feared that Congress would raise capital-gains rates. Inventory rose and prices decreased. Families who sell a second home that they have owned for more than a year pay capital-gains on the difference between the sale price and their original purchase price, minus improvements, certain fees and other deductions. There will also be local taxes and state taxes applied to the gains. All of this combined makes a good case for some wealthy owners who see a significant potential tax savings.

The upside means more affordable upper-end homes, especially for some foreigners, who continue to purchase real estate in this country as stocks and other financial purchases weaken.

Buyers are more focused on purchasing rental properties this year as the rental market tightens. Rental rates are being pushed up. Some rental companies have prospects waiting for nice rental properties. Often a buyer can close on a property one week and rent it the next. This is a far cry from a year or two ago as economic realities have swollen the ranks of renters. According to the U.S. Census Bureau, the population of 20-34 year olds (a prime renter demographic) will grow every year between now and 2030. With a record fall in interest rates on June 19, 2012 (to 3.53%), an exciting opportunity is afforded today's buyer.

While the lazy days of summer play themselves out, residents and visitors alike gather at Honey Horn Plantation on Friday mornings to peruse the local Farmers' Market where produce has been plucked from the vine in the early morning or late afternoon before and seafood was swimming in the river only hours earlier. The exotic smell of Palm Key smoked barbecue mingles with more earthly fragrances (including a nearby pasture with two snorting horses). Other edibles are organic hen eggs, quail eggs, artisan breads, gourmet soups - and don't forget the fresh peaches for a peach pound cake or fresh peach ice cream!

Building Sandcastles on Hilton Head Island

Across the extensive marshlands that surround rivers and creeks in our area of the Lowcountry, spartina grass turns from brown to a bright, new green in June and is almost submerged by flooding spring tides, illuminated by a full moon. As the tide turns some 12 hours later, the eye is drawn to bands of color: some browns, the bright greens, patches of umber - a Rothko color field painted on nature's canvas.

At nightfall, there are as many animal and bird sounds as one would hear in a jungle. The piercing, forlorn cries of a chuck-will's-widow mingle with the songs of tree frogs, the background noise of crickets, the occasional roar of a bull alligator and an owl's hoot. The chuck-will's-widow's relentless, shrill cries are often mistaken for those of the whip-poor-will but whip-poor-wills seldom visit this still-wild place.

When you live on an Island, you learn to co-exist with nature's creatures: deer, raccoons, the occasional snake, exotic bird life (consider the tall, handsome blue heron which is actually gray), elegant white egrets dressed in exquisite plumage for the mating season; ospreys, bald eagles and of course, the prehistoric alligator.

Recently a 13 foot alligator had to be removed from a large lagoon bordering a public park. The creature had snapped up an errant soccer ball that landed in the lagoon. The soccer ball was lodged in the jaws of the gator, which, in the end, could not be relocated so it subsequently was dispatched to wherever it is that only alligators go. The following is what was found in the creature's stomach: two turtles, a 4-foot alligator, 48 rocks, 53 fishing lures, 2 baseballs, 1 tennis ball, a half-pound of lead sinkers, two other partially digested balls and one beer can. Occasionally a homeowner will find a small gator taking a swim in the family pool, at which time the wildlife officer is called.

Hilton Head is flooded with a tsunami of visitors this summer, happily building sandcastles on the beach, riding bike trails that crisscross the Island, lobbing tennis balls, hitting golf balls, sailing while porpoises trail the boats, crabbing, visiting the Indian Shell Ring that was built 4,000 years ago in the Sea Pines Forest Preserve, eating watermelon - storing never to be forgotten memories of an Island vacation with friends and family.

In the real world of business and real estate activity, our market is recovering quicker than most in the national marketplace. As inventory is declining with short sales and foreclosures being cleared out, there are positive trends such as 77 homes in Sea Pines selling so far this year with an average price of $1,009,007 compared to $863,867 in 2011. Five oceanfront homes have sold, impacting the average price. As mentioned in my blog last month, the upper end of the market is selling again and for a couple of months now, agents have been getting multiple offers on desirable properties, the result of a more balanced market. Appraisers are still often having problems matching value to comparable selling prices as the market keeps moving, resulting in a determined buyer who knows what he wants making a larger down payment if necessary and walking away with the property at a good price and low interest mortgage payments.

Over the years, Hilton Head Island has benefited from The Town of Hilton Head purchasing around 1,100 acres of land on the Island, keeping it from commercial development. Currently, the Island is benefiting from the major infusion of capital improvements and redevelopment at Shelter Cove, Park Plaza, Coligny Plaza and Sea Pines Center. Beaufort County signed off on the Hilton Head Island's Airport expansion project. The master plan calls for a two-phased extension of the 4,300-foot runway to 5,400 feet. The work is designed to ensure the future of commercial and private air service on the Island. The FAA approved the plan last fall. Tree clearing has already begun.

May is Pink Sunsets, White Gardenias and Serious Money

When gardenias are blooming, Southern girls wear them in their hair. When the spring polo match is played at nearby Rose Hill Plantation on the mainland, pretty girls hot-walk ponies. On Hilton Head Island, May is pink sunsets, white gardenias and serious money.

A couple of weeks ago, an equestrian exposition and polo match, presented by Equus Ventures, LLC and led by Chairman Dr. Sandy Termotto, was held at the Rose Hill Plantation Equestrian Center where Hall of Fame horse racing jockey Eddie Maples and his wife, Kate, manage the center. Visitors to the center come from as far away as Dubai. The exposition competition involves gated horses such as the American Saddlebred, National Showhorse, Arabians, the Tennessee Walking Horse, the Missouri Fox Trotter, Morgans and others. Riders are attired in elegant riding habit. There is a Lowcountry Hunt demo, a Parade of Breeds that might include Paso Fino, Appaloosa, Shire, Hanoverian, Friesian, Thoroughbred, Selle Francais, Arabian, Palomino and Quarter Horse. Spectators see colorful carriages, enjoy creative tailgate picnics and better understand the powerful bond between horse and rider. The surrounding woods showboat with blooming white magnolia blossoms.

Eddie Maples was aboard the famous Secretariat ("Big Red") when he rode to victory in the Canadian International Champion Stakes.It was the revered horse's last race. Eddie has won 4,398 races including wins in the Belmont Stakes twice. He has competed in nine Kentucky Derbys. This event and others has raised over $215,000 to benefit local charities.

Serious money (serious to us) has been pouring into the Hilton Head real estate market this season. Five oceanfront homes in Sea Pines have sold and closed. One priced at $5,500,000 sold for $4,600,000; another priced at $4,900,000 sold for $4,550,000; another priced at $3,995,000 sold for $3,500,000. Occasionally we see an older oceanfront home sell in the $3 million range, then torn down to make way for a new oceanfront home. One buyer of a large, vacant oceanfront lot paid $9,600,000 and is building a handsome, spacious second home. He lives in Europe. Since the Island is close to build out, we often see interior older homes in a prime location costing close to $1 million purchased and torn down with a new home to follow. Many of these are second homes. One lovely home that is for sale, priced at $4,200,000 with 135-feet on the ocean, is only a couple of houses away from an oceanfront home formerly owned by author Patricia Cornwell.

In Wexford Plantation, an elegant mid-island development with British Colonial architectural influences and a large harbor for owners' yachts, there are a number of homes for sale in the $1.7-$3 million-plus range with owners who have already purchased another home in Wexford while prices are low. This means their properties are priced lower than what was paid for them but that doesn't bother the seller. It also means the current owner is paying two Property Owner's Assessments. Not to worry. They all love Wexford, its beautiful white, sparkling clubhouse, the safe harbor where they can access nearby rivers and the Atlantic Ocean. It is a very special community (originally developed by Marathon Oil).

Millions of dollars are being spent on renovations of existing oceanfront hotels on Hilton Head: The Westin Hotel and Spa, the Omni, Holiday Oceanfront and The Crown Plaza (now the Sonesta).

While all of this has been going on, two nature events are playing out on South Carolina's barrier islands with the arrival of two endangered species, drawn simultaneously by our warmer spring waters and the moon's cycle. One is a tiny shorebird called the Red Knot that weighs less than an iPhone, and a living fossil of the ocean floor that has been in our geological records for over 350 million years. It is the horseshoe crab. The female crab will beach at high tide and lay around 64,000 eggs in shallow water. The Red Knot will have flown four days and nights nonstop over the Atlantic Ocean from their wintering grounds in Chile and Argentina (some 18,000 miles every year) to their breeding grounds north of the Arctic circle in Canada and back. The Red Knot has only two weeks in which to double their weight.

Unfortunately, there has been a major decline in the horseshoe crab population (as well as the Red Knot) due to a quart of their blood selling for $15,000. The blood contains a compound called Limulus Amebocyte Lysate (LALO) that immediately clots around viruses, bacterial endotoxins and fungi. It is the equivalent of liquid gold for biomedicine. It is a $50 million dollar a year industry in the U.S. Serious money.

Diann Wilkinson