Posted By Gene Carter @ Mar 10th 2021 3:21pm In: Monthly Real Estate News


Grand Strand Real Estate News


February 2021


Volume 2021 Issue 2

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Dear Gene Carter Team,


Summary


So far, 2021 has been crazy busy. Teressa and I have already written 19 new contracts, all resort condos so far - in the coldest months of the year! There are good deals out there for buyers but, man oh man, it’s a great time to sell right now! Inventory levels are at their lowest in over a decade. Many oceanfront condo developments in North Myrtle Beach have no available listings. We are seeing more multiple offers and “instant” sales as prices in most segments of the market are being driven up (although appraisals are limiting appreciation). Please contact us if you are thinking of buying or selling in these exciting times.

Below is my 2020 comprehensive oceanfront and resort condo sales analysis – focused specifically on this hyper local segment of our market – complete with charts and reports on historical numbers of sales, average and median prices, sales per price range, sales per number of bedrooms, cash vs. financed sales, comparative numbers of sales in 100 popular developments, and the leading sales company on the Grand Strand (my company, RE/MAX Southern Shores was number one from a 9th straight year with $648M in volume). 

Greetings from The Grand Strand!

Wow, it’s been busy! So far in 2021, Teressa and I (Beach Pro Team) have already written 19 new contracts, all resort condos so far - in the coldest months of the year! Of course there are good deals out there for buyers and interest rates remain historically low but, man oh man, it’s a great time to sell right now! This edition includes my big analysis of 2020’s sales but let’s briefly discuss the current boom first. 

Last night when I sifted through all the active listings of resort properties for my Best Buys as I do every month, it took about half as long as normal because there are so few for sale. As of yesterday, there were 786 active oceanfront condo listings on the entire Grand Strand. There have consistently been between 950 and 1200 listings every month for as long as I’ve been putting these lists together - at least 10 years. There were only 659 active condo listings off the beach (non-oceanfront buildings), also the lowest number I have seen. There were only 36 oceanfront houses for sale. For years, this number hovered around 100 at any given time. Per the overall market stats provided by MLS, overall active home listings are down about 16% from this time a year ago.

We are seeing multiple offers and “instant” sales frequently although it has not reached the level we’re hearing reports of in some markets where all new listings are immediately bombarded with dozens of offers. The increased demand is driving prices up but more in some segments of the market than others. Also, appraisals (which are typically based on recent comparable sales and do not generally account for increased demand and low supply) have been holding market prices back.  

Judging from conversations with agents who specialize in residential single-family sales, some price ranges and geographic areas are far more active than others. Condos in most areas are selling well, both oceanfront and off the beach. In fact, many oceanfront condo complexes in North Myrtle Beach currently have no active listings for sale. Although condotels remain the least active segment of the market with the most inventory, interest is picking up with the anticipation of a strong rental season. In fact, 13 of the 19 new contracts for my team so far in 2021 have been for condotels. As increased sales draw down the inventory, we should see some price improvement.

And now here is my big 2020 condo sales analysis. Incidentally, most resort condos (as opposed to condos almost exclusively purchased and occupied by primary residents) usually follow the same market trends as oceanfront condos. Stats on quite a few other resort condos (non-oceanfront) are also included. Let’s get started…

The first graph (below) shows the number of closed oceanfront condo sales in each year since 2003.The number of sales in 2020 was almost exactly the same as in 2019 (1698 in 2020 vs. 1687 in 2019). Personally, I think this is amazing considering the primary buying season for oceanfront condos was virtually eliminated by the shutdown at the onset of Covid in the spring. Sales for the rest of the year, particularly the fall and winter, made up the difference.


By the way, as previously mentioned, there are only 786 active oceanfront condo listings now versus 977 this time last year. 

Also, the number of closed sales for condos not in oceanfront buildings increased by 8.8% (4928 in 2019 vs. 5361 in 2020). 

The next two graphs (below) show the average closed sale prices and the median closed sale prices for oceanfront condos for the same years. Both increased significantly in 2020.

The average closed sale price increased from $203,243 to $227,455, an increase of 12%.

The median closed sale price increased from $157,000 to $185,000, an increase of almost 18%.


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These price increases were not spread out evenly throughout our market. The next couple of graphs shed some light as to the segments of the market in which condos sold in higher numbers and at higher prices.

The graph below shows closed oceanfront condo sales since 2015 by price range. Closed sales under $50K have become almost nonexistent, with only 1 in 2020. Sales volumes decreased in the $50K to $100K and $100K to $150K ranges and increased in every higher range with the biggest increases in the $250K to $300K, $300K to $350K and over $650K ranges. These numerous sales in the higher price ranges fueled the higher average and median prices we saw in the earlier charts. 


The following graph shows the number of closed sales versus the number of bedrooms. We see a similar pattern here with the efficiencies and 1BR sales down and increases for all other floor plans. The 3BRs had the biggest jump.


This next chart, which shows average selling price per number of bedrooms just adds one more piece to the puzzle, showing that prices increased regardless of the number of bedrooms but more for the 3BR condos than the others.


These charts for sales by price range and number of bedrooms correspond to my observations which I have mentioned in recent newsletters - that larger, more expensive condos have been selling better than the smaller, less expensive condos. 

The next graph shows cash purchases versus financed purchases by year. As you can see, cash purchases still dominate, representing over 58% of all oceanfront condo sales. This is a little surprising with interest rates barely higher than the inflation rate. I think a large percentage of the “cash” purchases are actually 1031 tax deferred exchanges.


The next chart shows the ratio of cash purchases versus financed purchases per price range in 2020. As might be expected, the lower priced condos were predominantly purchased with cash but about half of the higher priced condos were also purchased with cash. In addition to the previously mentioned 1031 exchanges, many of the higher end purchases (at least in my team’s experience) were made by relatively wealthy individuals buying true second homes. Condos on the extreme high end were mainly purchased with cash, as has always been the case.


The next two tables show the respective numbers of closed sales in selected oceanfront and non-oceanfront developments for the past several years. Generally, the number of sales roughly corresponds to the number of units in a development (the bigger the development, the more transactions). Also, if there is new construction producing new residences, the numbers of sales will be high. For the most part, with a few exceptions, the 2020 sales were remarkably close to the 2019 sales - impressive considering the impact of Covid.



OK, now for company performance. Time for me to brag again. The following graphic shows the rankings for the top 5 real estate firms on the Grand Strand by sales volume. As you can see in the chart below, my very own RE/MAX Southern Shores, for the 9th straight year, led our market with over $648 million in sales, $82 million more than the next closest competitor. Keep in mind that, although we are large, several other companies have far more agents. Ours just do a better job for their clients. 


Well that’s the 2020 oceanfront condo sales report. Please remember that each owner’s and each potential buyer’s situation is unique so please contact us if you’re thinking of buying or selling. Teressa or I will be glad to work with you to develop your personalized plan to sell or to buy.

That’s all for now. Check out all our usual Grand Strand Market Reports, Sales and Listing Updates, my Best Buys, and new Beach Pro Team reviews.

See you at the beach! 

Beach Pro Reviews

Here are some new reviews published in Zillow. 


  • Gene and his Team were always available and were excellent to work with. His knowledge and follow thru were beyond expectations. Highly recommend them! Randy and Nancy. Marina Inn. Myrtle Beach.

  • Gene was very knowledgeable about the local real estate market and about our specific resort which gave us confidence that we were listing with the right person. We were very satisfied with the the selling of your property and the ultimate sale price. Tony. Dunes Village. Myrtle Beach

We have chosen to utilize Zillow's review platform. This is not an endorsement of Zillow (Please ignore the ridiculous "Zestimates") but we think an online third-party review service provides more credibility than simply printing reviews ourselves. At this time, we have over 100 reviews with more coming in each month. To see all of the reviews at any time, you can visit Zillow Beach Pro Team reviews. 

Grand Strand Market Report


Below is a link to a detailed report on the current state of our local real estate market complete with statistics for just about anything imaginable. Please keep in mind that these statistics cover a broad range of properties and that particular areas or developments may behave quite differently.  

As always please contact me if I can be of service in any way.

See link below to interpret terms used in this report.


Grand Strand Market Report - January 2020

Best Buys


The following current listings are exceptionally well-priced and represent great values. The spreadsheets are sorted by price. These are live links to listing details and they will change according to changes in the MLS (Pending, Sold, etc.). The listing details are in the same order as the spreadsheets. Please call me directly if you find something of interest to you.
  


OF/OV Homes Brochures:    Link to Listings 
OF/OV Homes Spreadsheet:   Link to Spreadsheet 
 
OF/OV Condo Brochures:    Link to Listings
OF/OV Condo Spreadsheet:   Link to Spreadsheet

Non-OF Condo Brochures:     Link to Listings 
Non-OF Condo Spreadsheet:  Link to Spreadsheet
If you are considering buying or listing any property on the Grand Strand, or if I can be of assistance in any other way, please contact me. Also, please feel free to forward this newsletter to friends or acquaintances and of course I will be happy to add them to my email list.

Finally, please let me know if you are going to be in the area and would like to get together.

See you at the beach!




Gene Carter
Beach Pro Team
Cell Phone:  843-455-4785

The material provided is for informational and educational purposes only and sometimes contains current or forward-looking statements on real estate market conditions, and should not be construed as legal, investment and/or real estate advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors, and is not necessarily the opinion of RE/MAX Southern Shores or its agents.

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