Your September Real Estate Market Update

Last month's numbers for the Myrtle Beach real estate market are in, and now is a great time to make your move as a buyer or seller! 

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We have the brand new market numbers for last month, and there were some BIG increases! Now is a great time to make your move as a buyer or seller! There was a HUGE jump in both sales and prices for the month of August, following a July where sales numbers were almost flat. Single-family home sales are up 19.7%, and the sales prices for resale homes are up 15.9%. In July, the median sales price was $199,000, and that number jumped to $220,300. A combination of low inventory and significant drops in interest rates led to both sales, and price increases. Interest rates dropped to 3.85%, which created a great opportunity for buyers to enter the market who were still on the "fence" so to speak, and it also enticed others to enter the market. Inventory has now crossed below that six-month line from a buyer’s market into a seller’s market. Right now, there are only 5.7 months of inventory available. That means that if no other homes came on the market, it would only take 5.7 months to sell all of the homes currently on the market. Inventory has dropped 18.6% year over year, which is part of why prices are jumping up. On the other hand, new construction sales are down 4.4%. There is simply less inventory available. The good news is that prices are up 9.4%, so our market has seen almost double-digit growth in prices compared to August of 2016 which is great news for sellers.

Low inventory and surprisingly low interest rates have again contributed to major price increases.

People often ask if they should sell in the fall market, and you definitely want to take advantage of current market conditions. People are still coming to Myrtle Beach to look for homes, but these buyers are a little different from the ones we see in the summertime. That said, our market is not as seasonal as most think. A lot of people make the mistake of thinking that after summer, the housing market just dies. We have a mild climate and fairly nice weather year round, so we will continue to see quality buyers this fall. If you’re thinking of selling your home, you should list this fall and take advantage of those price increases. Condo sales are up as well, increasing 11.3% last month. Prices dipped 1.5% to $118,375, but that number will jump back up. It all has to do with inventory. Right now, there are 5.5 months of inventory, which is a 32.1% decrease compared to condo inventory in August of 2016. The market is really being driven by supply and demand right now. Low interest rates have buyers coming out in droves, so if you’re thinking of selling, now is the time. You may have more equity in your home than you think. Just last week, we closed on a $2.25 million home. We closed on a $1.6 million property two weeks ago. We are selling everything across the board and we are in touch with buyers around the country, so reach out to us if you have any questions about selling your home this fall. We would be happy to help you!

Your August Real Estate Market Update

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.

What Is the Biggest Challenge in the Myrtle Beach Real Estate Market?

What’s happening in the Myrtle Beach real estate market? Home prices are up, but we are still dealing with the effects of low inventory on our market. 

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We just got the numbers in from last month, and I’d like to share a few interesting trends with you today. This is the first month that single-family resale home sales have gone down. They only dropped by 2%—but still, we haven’t seen a decrease in sales in a while. I mentioned that sales might decrease in the third or fourth quarter this year, and it looks like that prediction has come true. New construction home sales also dropped by 3.8% last month. The good news is that price is up 12.5% for resale homes, which is a huge jump. The median price has risen to $224,900. This is awesome news for our market. The sales price for new construction homes is up 2.4% at $245,000. Why are home prices up and home sales down? It all has to do with supply and demand. As you know, inventory has been down significantly month after month, which puts a strain on the number of home sales while also driving home prices up. Inventory for resale homes dropped 6.4%, which is where all the strain on home sales is coming from. This trend will probably continue in our market and other markets across the country that are also struggling with low inventory.

Home sales dropped for the first time in months, but prices are still on the rise. 

Right now, Myrtle Beach has six months of inventory, which is a healthy amount. However, there is a huge number of buyers out there who cannot find the right home. As a seller, you have a great opportunity to take advantage of that demand. Our market is seasonal and we are coming up on the hottest part of the year, so definitely reach out if you are considering selling your home. Condos are going through a similar challenge. Last month, the number of condo sales went up 9%, but inventory dropped 18.9%. We will probably see that low inventory affect the number of condo sales in the near future. After all, residential homes tend to lead the pack in terms of what’s happening in the market. Still, condo prices went up last month by 8.4% to $129,000—and that’s awesome. You can see the growth in our market but, again, the biggest challenge is low inventory. If you are selling your home, you are in a very fast-paced market right now. We just listed a house for sale and got five offers within 24 hours of putting the home on the market. So, if you are thinking of selling, now is definitely a good time to put your home on the market. One thing to watch as we head into the fourth quarter is how our spring market, which saw a 20% increase in sales, will affect those October and November sellers. A lot of people who planned on buying a home this year may have already purchased one last May, which may affect your chances of selling your home this fall. If you have any other questions about our market or would like to learn more details about your specific neighborhood, just give me a call or send me an email. I would be happy to help you!