Myrtle Beach Area Real Estate Trends

2010 looks like it’s going to be a good year. Let me explain.  As a 25-year veteran of the Myrtle Beach real estate market, I’ve experienced several downturns in our market. As a result, I’ve learned to look for three things to occur in a recovering real estate market. 

First, the number of new listings goes down.  Sellers are withholding their property from the market because of the downturn in values.  On January 1^st, 2008, there were 14,914 active listings in our MLS.  On January 1st, 2009, there were 12,127 active listings in our MLS.  That is a 19% decrease in active listing inventory.  The ratio of supply and demand is becoming more balanced.

The second event to look for is the decline in the number of days a listing is on the market before it sells.   In 2008, the average for the days on the market of all listings was 175.  In 2009, that number changed to 154, a decrease of 21%.  This declining trend tells me that the buyers are coming back.  

Finally, I look for the rise in the ratio of sales price to listing price (buyers are really back).  In 2008, the ration of sales price to listing price was 91%.  In 2009, that number changed to 93%.  This rise tells me that there were more buyers making offers in 2009 than 2008, a sure sign that things are indeed getting better.

So, what does this mean for sellers and buyers in our market in 2010?  For sure, we are still in a buyers market.  There are still a lot of foreclosures, particularly in the condo market yet to sell.  Buyers will continue to get unbelievable deals in the oceanfront high rise market where last year we saw an efficiency unit with an original asking price of $99,900 sell for $12,500.  Those looking for a single family home can expect to find outstanding buys as well, like this 3 bedroom/2 bath 1300 square foot home with an original price of $248,000 that eventually sold for $57,000.  Granted, these are the extremes, but my point is that those wanting to be a part of this market should not wait.  No one can accurately predict when a market has bottomed out, but careful study of prevalent conditions leads me to believe that a change has occurred.  If the market hasn’t turned yet, we are definitely at that proverbial corner.  He who takes the next step is moving in the right direction.