Today I’m back with an August market update for Myrtle Beach. Some interesting changes have taken place since this time last year, and the numbers right now could mean great opportunities for buyers and sellers alike.
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Today I’m excited to tell you that the latest numbers from last month’s market are in—and what they show us is very interesting.
Interestingly enough, last month’s sales are extremely similar to what we were seeing around this time of year in 2016. The number has risen, but only slightly. In August of this year, we saw 474 residential resale homes compared to 473 in 2016. This is just a 0.2% increase.
Additionally, year-to-date sales are up 8.2% overall. However, the more surprising statistic that I’ve found has to do with price. The median price last month has actually gone down 1.5% and is now sitting at $199,979. The 12-month rolling average, though, is up 5.3%—which is good news.
This year I’ve noticed that people tended to buy earlier in the year, primarily during the first and second quarter. The slowdown in sales we’ve seen actually closely correlates with what is going on in terms of inventory.
Inventory has gone down significantly. In fact, it’s dropped by 9.6% as of last month versus this time in 2016. Months of supply, too, is down by a lot. There is an 18% difference between this year’s current supply, which is 5.8 months, and last year’s 7.1 months.
In this time, we’ve passed over from a buyer’s to a seller’s market—since the threshold of a balanced market sits at six months of supply. However, when inventory drops too low it can result in buyer fatigue. Markets that are seeing just two or three months of supply are likely to experience this. This creates a stalemate for people trying to complete a real estate transaction.
Our current Myrtle Beach market, though, is in a good place for sellers. Since our months of supply isn’t too low below the threshold of a balanced market, we aren’t experiencing some of the negative effects that can come along with even lower inventory. A lot of homes are expected to be sold this fall, so if you’ve been thinking of selling, now is a great time. This is currently a great opportunity. This 5.8 months of inventory is probably the most important number we’re seeing this month.
Home sales dropped for the first time in months, but prices are still on the rise.
We’re seeing surprises elsewhere in the market, too. New construction sales have gone down by 20%, with 177 sales last month compared to 224 in July of 2016. But this does come with good news. Price is up 7%, sitting this year at a median price of $231,000, and the 12-month rolling average is 3.7%. Inventory for new constructions, though, has gone down as well—dropping 6% from last July.
The months of supply has also dipped below the six-month mark in regards to new construction homes, which now have an inventory of 5.5 months. This is an 8.3% drop from the same month last year.
These similarities are interesting, and both point to great opportunities in our current local market.
Statistics regarding condominiums have also changed since 2016. Sales are up 1.8% from last year and the rolling 12-month average is up 12.6%. However, the number of condos sold has decreased slightly due to a 20.5% drop in inventory. This has left us with seven months of inventory for condos on the market, currently. Last year, we had 8.8 months.
Prices, as always, are a big focus of our market updates. Median condo prices are up 5.3%, having gone from $120,000 to $124,750. Overall, the bottom line is that opportunities for our market are great right now across the board.
Additionally, our fall marketplace is now at a nine-month low in terms of interest rates, which are sitting at just 3.96%. After the election, very few people believed interest rates were going to dip below 4%. Nevertheless, they have. Whether you’re looking to buy or sell, the market is currently in a great place.
If you or someone you know would like help with selling your home, have any other questions, or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
