Myrtle Beach housing market

January 20, 2011 by · Leave a Comment
Filed under: South Carolina 

The Myrtle Beach housing market has been performing more strongly than the rest of the state and the country, according to several local experts and a number of recent reports. Despite a continually high proportion of short sales and foreclosures affecting the market, the general consensus seems to be that the Grand Strand and Myrtle Beach real estate markets performed well in 2010 and can be expected to continue that strength into the next year. Throughout the entire United States, there were a total of just less than three million properties sold into foreclosure during 2010. Specifically in Grand Strand and the Myrtle Beach region, foreclosures and short sales have had a substantial impact on the market, edging up the quantity of sales and the median sales price. According to one local expert, the effect of foreclosures has been to depress average sales price to the level they were at nearly seven years ago. The consequences of a foreclosure in the Myrtle Beach region extend beyond the physical borders of the property being foreclosed upon. For instance, if a number of properties in a given area are sold in a foreclosure property, that foreclosure decreases the appraised property value of every other home for sale in the area. The Grand Strand region saw an increase of about one thousand foreclosures in 2010 relative to 2009, rising from around one thousand five hundred to approximately two thousand five hundred. It appears that the strong pace of foreclosures will continue into 2011, and that it will be a considerable period of time before the market is no longer driven largely by distressed properties.

There were considerably more Myrtle Beach and Grand Strand homes for sale purchased in 2010 while signs seem to indicate that the market’s sales figures will continue to improve for several months at least. According to the local Multiple Listing Service, 2010 saw twelve percent more homes sold than 2009, while condominiums sold increased by more than twenty percent. Interestingly, year-over-year single-family home sale figures for the month of December 2010 saw a decline relative to December 2009. Single family properties saw a four percent decrease, although condominium sales increased by eighteen percent over the same time. One possible reason why there was a year-over-year decline for single family properties is the federal housing tax credit, which was still positively affecting the number of home sales last year. The median sales price of a single-family property in 2010 was $172,625, while the average purchase price of a condominium was $119,990. These represented a decrease of approximately one percent and six percent, respectively. Local real estate developers have started to adapt to the new conditions of the real estate market, according to The Sun News. A January 15, 2011 article indicated that the Lennar Corporation was planning to build a series of town homes in Myrtle Beach, which will be priced below $200,000 in an attempt to cater to the lower median price of the area.