The Beat of Our own drummer! What is going on with home values?

Myrtle Beach is different.  We've said this for years and in many different industries.  But, why is it different and what is it different from?

Well, we are different in that for the last year the local real estate market has gone against the trends you read about happening on the national stage.  It is true that our inventory levels have been decreasing and that our demand has been increasing, but our prices are not increasing.  In fact, single family home pricing declined another 2.6% in 2012 and condo pricing went down 3%.  These declines do represent a more gradual decline than past years and the outlook for THIS market is stable pricing as we go through 2013 and begin 2014.  In the national market, the demand has been driven by investor buyers scooping up properties priced at crazy low amounts and using historically low interest rates to finance them.  As the quality properties are sold and pricing in those markets increases we will see sales volume soften and their temporary appreciation stall.  Fortunately, in the Myrtle Beach market, we are seeing Buyer's that plan on using the property as second homes or primary residence drive the demand and while this may not drive prices higher, it will enable us to have sustained growth in both sales volume and pricing over the next few years.

 

Right now, the inventory levels are rising daily with more new properties on the market than the ones that are selling, withdrawing, or expiring from the market.  This continued daily surplus is what will cause our pricing to become stable and not rise over the next 12 - 15 months.

 

Any prospect of the average pricing going up will be driven by lower foreclosures coming to market and lenders requiring higher retail pricing on short sales.

 

We will continue to monitor the market for you and keep you informed of trends here while helping you to interpret the national news regarding real estate.

 

Have an awesome day!

4 Advantages to Investing in Myrtle Beach Real Estate

December 1, 2012 By Ben Guyton /Hoffman Group

With the housing market showing signs of improvement both in Myrtle Beach and surrounding areas, opportunities are in abundance for purchasing a vacation home or investment property. Whether you are a homeowner, a seasoned investor or desire to purchase a vacation or investment property, there are many advantages in doing so.
Following are 4 key advantages of investing in real estate in the Myrtle Beach and Grand Strand area:

1. Supply and Demand

The current real estate market in the Myrtle Beach area is considered a buyer’s market providing ample supply of competitively priced properties. When supply exceeds demand this results in record low prices. With an improving local economy, demand is showing increased growth. Demand, which closely follows an improving economy, is an enticing factor for investors who are looking for an ROI from vacation economies such as Myrtle Beach.

2. Rental Income Demand

Many investors find Myrtle Beach real estate attractive because of the rental demand for vacation or resort type properties. This has only become more in demand over the last few years due to attractive pricing and availability of properties.
A professional real estate agent knowledgeable about Myrtle Beach real estate will be able to provide advice that will assist an investor with regards to opportunities available to purchase, incentives, income streams, and ROI.

3. Historically Low Interest Rates

Interest rates have hit record lows, and investors are making some smart borrowing decisions with the low rates. While the current economic conditions with regards to the “fiscal cliff” are unpredictable it is safe to say that now is the time to take advantage of the record low interest rates.

4. A Growing Economy

Amid economic downturns and recent tough economic times statewide and across the country, rental incomes in Myrtle Beach have shown resiliency. The key is a successfully managed property which enhances. This strategy provides an investor with a better probability for positive cash flow.
If you are in the market to purchase a new home or condo, investment or otherwise, today’s market environment in Myrtle Beach is very promising.

The material provided is for informational and educational purposes only and should not be construed as legal, investment and/or real estate advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

Improving Market? You bet, but....

The Myrtle Beach area has experienced a welcomed month-to-month increase in residential sales activity from January through August. It is anticipated this trend will continue throughout the year due to excellent interest rates and some great bargains. It is also encouraging to see the number of sales over the 2011 figures each and every month with better than average improvements in May, June, and July of this year over the preceding months in 2011.
While inventory of residential properties has declined slightly each month over the last several months, there are 4,417 residential properties currently on the market. The largest percentage of homes on the market are between $100,000 to $200,000 with 1,739 listings. The second largest group is $200,00 to $400,000 which reflect 1,576 active listings. This price range also has had the most sales year-to-date at 804 and is a healthy 7.7% increase compared to 2011 which had 746 sales.
The market still clearly favors buyers due to ample distressed properties, bargain prices, and at or near record low interest rates. This does not mean if you are a seller that you cannot sell. It means you if you are selling your must be priced in the market and you must be have a good marketing strategy