Myrtle Beach real estate market

January 20, 2011 by  
Filed under Investing

The Myrtle Beach real estate market, part of the larger Grand Strand, South Carolina housing market, saw considerable improvement in 2010 despite a recent increase in foreclosure filings. According to a January 12, 2011 report from the Sun News, there was a substantial uptick in the strength of the Grand Strand real estate market largely due to an increased number of home sales in recent months. Local experts indicated that there should be a higher number of single family home and condominium sales in the upcoming year. Compared to 2009, there was approximately twelve percent more single family homes sold in the Myrtle Beach area during 2010. Over the same year-long tracking period, there were about twenty-one percent more condominiums sold compared to 2009. In December 2010 in particular there was a slight decrease in the number of home sales, as the quantity of properties sold fell by about four percent relative to the same time last year. In terms of condominiums, there were eighteen percent more sold compared to December 2009. Some experts pointed out that the deflated numbers towards the end of the year should not be a major cause for concern, considering that the figures provided from December 2009 were artificially inflated by the federal housing tax credit. The median sales price of Myrtle Beach homes fell along with the quantity of properties sold in December 2010. Compared to December 2009, the average sales price was about nine percent lower for single-family homes, while the median sales price for condominiums was also down from last year. Over the entirety of 2010, the median single-family home sales price was $172,625, representing a decrease of about one percent from 2009. On the other hand, the median price of a condo was $119,990, a decline of approximately six percent relative to 2009. Overall, experts seem generally optimistic that the market will continue to improve going into the New Year.

There are some indications that foreclosures and short sales continue to be a substantial part of the market in 2011, both on the national level and on the Grand Strand in particular. According to Realtors, there were approximately two thousand, five hundred foreclosures auctioned off or sold in 2010. This is about one thousand more properties than were foreclosed on in 2009, when there were a total of around one thousand, five hundred completed foreclosures. Although this high proportion of distressed properties was anticipated to some extent, it is also expected that foreclosures will continue to have a heavy influence on the market in upcoming months. In addition to having an obviously adverse effect on many homeowners, the high number of foreclosures has also driven down the region’s median sales price substantially. Largely as a result of distressed properties, the median sales price of both condominiums and single family homes has been depressed to around 2004 levels. Of these two categories, condominiums have been hit especially hard, with few indications that this trend will change anytime soon.

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