Beach Pro Team, Gene Carter REALTOR
https://www.beachproteam.com/blog/grand-strand-real-estate-news-january-2022

January 2022

Volume 2022 Issue 1

Summary

Today I’ll be analyzing some of the incredible statistics from 2021. There’s also lots of info about where the current rapidly appreciating market could be going and what’s the best plan of action to take advantage of it. This newsletter is lengthy and contains extensive market data - but I think this info could be worth a great deal of money, especially to current owners, so please read it carefully. Take a look at the table at the beginning for examples of big profits some of my listing clients have enjoyed in the current seller’s market.

We have completed our Closed Sales Histories for 2021 (to go along with our previously published yearly reports back to 2009). These are concise, organized spreadsheets providing detailed information about all of the closings (per MLS) in over 190 oceanfront and resort condo developments.

Click on the following link to gain access to our Closed Sales Histories from 2009 to 2021

www.grandstrandclosedsaleslist.com

You can also sign up for these on our website (Beachproteam.com)

PLEASE NOTE THAT MARKET VALUES FOR MANY PROPERTIES WERE INCREASING RAPIDLY AT THE VERY END OF THE YEAR AND CURRENT SELLING PRICES MAY BE CONSIDERABLY HIGHER THAN THE CLOSED SALES WOULD SEEM TO INDICATE. PLEASE CONTACT US FOR AN UP-TO-DATE EVALUATION. MUCH MORE ON THIS BELOW.

BUYERS: Oceanfront and resort condos on The Grand Strand are great deals even at the present higher prices. With the current low inventory often resulting in competing offers for the few listings it’s more important than ever to have the best buyer’s agent in your corner. None are better than our buyer’s agent, Teressa Carter. Contact us now if you are interested in buying!

OWNERS/SELLERS: 

Your Condo is Worth More Than You Think (Way More!)

DO NOT accept a direct offer for your property from a buyer or buyer’s agent even if the proposed price is higher than recent closed sales! Recent closed sales will almost certainly lead you to think your property is worth less than it is (see the table of my sales prices for my listings versus recent closed sales in the newsletter). These buyers and buyer’s agents are NOT representing you or trying to give you your best price. You will almost certainly leave money on the table compared to what we could get you with a well-designed and aggressively priced listing in our very competitive open market. 

The reason for these startling jumps in value is that resort condo prices only go up sharply when rare circumstances result in inventory dropping to zero - and now is one of those rare opportunities. We might be able to sell it at a MUCH higher price than recent closed sales would indicate. Please contact me to find out the market value for your property. You’ve got nothing to lose by asking!

See the updated graph of active listings I’ve been including in my newsletters each month. The numbers of oceanfront listings (127) and non oceanfront listings (225) have both reached new lows.

 Consider Selling Now Whether You Need To Or Not

If you have any “reason” to sell, now is the best time in 15 years (You will see this statement again).  

Even if you have no “reason” to sell - think about it anyway (and contact me for a free evaluation). This has already paid off big for several of our clients. Call us for an evaluation! 

In addition to the higher prices, oceanfront and resort condos have been selling faster and the contract terms have been better than they have been in many years. 

There are 3 graphs in the newsletter which illustrate just how unusual our current market is (yearly history from 2002 to 2021 for oceanfront sales, average prices and median prices). When examined together, they present a seemingly contradictory picture. The number of sales in 2021 increased by a whopping 65% over 2020 but the average price only increased by 7.4% and the median price only increased by 2.7%. With all those sales, why didn’t prices go up more?

The reason for the disconnect is that all those listings had to be sold (at the same prices at which they’ve been selling for years) to get down to that magic “zero” inventory state that makes buyers willing to pay higher prices. This didn’t happen until right at the end of the year, especially for the condotels, which make up the majority of the volume of sales. 

The huge number of sales also presents a question - why did so many buyers decide to buy oceanfront condos in 2021? In particular, the pace of condotel sales seemed to accelerate at the end of the year. I think the biggest driver for increased condotel buyer interest was the fact that, as the year went on, it was becoming apparent that the rental incomes for 2021 were going to far surpass those of any previous years’ (by 20% to 35% in many cases). Condotel prices have always had a strong correlations to rental incomes - incomes up / prices up, incomes down / prices down. Hopefully 2022 will be equally strong.

Rental incomes have a much smaller effect on prices for non-condotel resort condos. The market segments which sold faster earlier (non-condotels in NMB) started appreciating in 2018 while the condotels in Myrtle Beach didn’t really start appreciating until late in 2021 (See graphs). 

So what’s going to happen in the coming months?

The one statement I can make about the current market with absolute certainty is that NOW is the best time to sell in over 15 years. 

Current owners are split in their opinions as to the market direction in the coming months. Some think prices will go higher and some think they will come back down soon.

The factor that is most likely to end this seller’s market (and which does not involve any doom and gloom) is simply for more owners to list their properties for sale because of the higher prices. The trajectory and eventual peak of the market will be determined by the relative pace of new listings verses buyer demand. If buyer demand keeps up with the increased listing pace, prices should at least stay high or possibly increase more. If the listings increase faster, prices will level off or possibly drop. The difference in selling your property when you are the only listing versus being just one of several nearly identical condos is huge. If you decide that selling makes sense, the safest bet might be to get your property on the market ASAP.

The truth is that no one, including me, knows when the market prices will peak and if prices will remain high or fall back. The only time we will be able to identify the peak is many months or even years after it has passed. Also, some properties have more potential upside or downside than others.

While these are exciting times for owners (and buyers), keep in mind that condos still sell whether we have a buyer’s market or a seller’s market or something in between. What’s different is that the price changes are gradual, the days on market are longer and the negotiations are tougher - in other words, normal real estate as usual. And we can help you buy or sell in that market too! 

For now, please contact me to get an evaluation of your property. You will be glad you did!

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.

Greetings from The Grand Strand!

Happy New Year! 2021 has been both scary and exciting – for life in general and for our local real estate market. Who would’ve thought it would take a worldwide pandemic to trigger the highest number of oceanfront condo sales in 15 years? 

Today I’ll be analyzing some of the incredible statistics from 2021. There’s also lots of info about where the current rapidly appreciating market could be going and what’s the best plan of action to take advantage of it. Be forewarned - this newsletter is lengthy and contains extensive market data - but I think this info could be worth a great deal of money, especially to current owners, so please read it carefully. 

I’ve been specializing in oceanfront and resort condo sales for 36 years and believe me when I say that today’s market conditions represent an extraordinary opportunity for an owner. Here are a few actual situations with real numbers (all my listings in the past 60 days) to give you an incentive to take the time to read this. Note the giant price jumps in short time frames after years of minimal appreciation.

 Wow!

 First, an announcement… 

FREE 2021 Closed Sales Histories for Over 190 Resorts (just completed)

Bea has completed our Closed Sales Histories for 2021 (to go along with our previously published yearly reports back to 2009). For those of you who are not familiar with these, they are concise, organized spreadsheets providing detailed information about all of the closings (per MLS) in over 190 oceanfront and resort condo developments. These are great tools for owners to use to assess long term market value trends and they come in handy if you want to dispute your tax evaluation. Here is an example.

PLEASE NOTE THAT MARKET VALUES FOR MANY PROPERTIES WERE INCREASING RAPIDLY AT THE VERY END OF THE YEAR AND CURRENT SELLING PRICES MAY BE CONSIDERABLY HIGHER THAN THE CLOSED SALES WOULD SEEM TO INDICATE. PLEASE CONTACT US FOR AN UP-TO-DATE EVALUATION. MUCH MORE ON THIS BELOW.

Click on the following link to gain access to our Closed Sales Histories from 2009 to 2021

www.grandstrandclosedsaleslist.com

You can also sign up for these on our website (Beachproteam.com)

Most of this newsletter is going to be directed to owners regarding the current “seller’s market”. For you potential purchasers out there…

If you’re thinking of buying…

Oceanfront and resort condos on The Grand Strand are great deals even at the present higher prices. They have been undervalued for at least a decade and a correction was long overdue. They are still selling for far below rebuilding costs and they are still priced far below similar condos in other coastal areas. The rental incomes are also generally better than in other resort areas and 2021 was the strongest rental year ever. Also, a purchase now will enable you to optimize your cash flow for the year with the peak rental season fast approaching. Finally, higher interest rates are right around the corner so now is the time to act! 

With the current low inventory resulting in competing offers for the few listings it’s more important than ever to have the best buyer’s agent in your corner. None are better than our buyer’s agent, Teressa Carter. She is also great at digging up properties which are not in MLS - hidden gems! Contact us now if you are interested in buying!

Now for all of you owners out there…

Your Condo is Worth More Than You Think (Way More!)

DO NOT accept a direct offer for your property from a buyer or buyer’s agent even if the proposed price is higher than recent closed sales! Recent closed sales will almost certainly lead you to think your property is worth less than it is (see the table above). These buyers and buyer’s agents are NOT representing you or trying to give you your best price. You will almost certainly leave money on the table compared to what we could get you with a well-designed and aggressively priced listing in our very competitive open market. There’s nothing wrong with someone trying to get a bargain but you don’t want a buyer to do it at your expense. 

Let’s say you have been keeping up with sales prices for properties comparable to yours and they’ve been selling in the $250,000 range for the past several years (or maybe the past decade) and the most recent closed sale back in the spring was at $265K. You get a call saying that a buyer will pay $285,000 for your property. Sounds great and you might be tempted to take it except -  we could use our expertise to attractively present it to ALL of the prospective buyers out there and sell it on the open market for  $420,000. This may sound far-fetched but these are real numbers from a real situation included in the table at the beginning of this newsletter. 

The reason for these startling jumps in value is that resort condo prices only go up sharply when rare circumstances result in inventory dropping to zero - and now is one of those rare opportunities. In this situation, when a listing finally does appear, fear of loss kicks in and overwhelms the typical buyer’s cautious micro analysis of comps, rental numbers, HOA fees, etc. If the inventory for properties like yours is effectively zero (and many properties are in this scenario at this moment), we might be able to sell it at a MUCH higher price than recent closed sales would indicate. Please contact me to find out the market value for your property. You’ve got nothing to lose by asking!

To illustrate just how low the oceanfront condo inventory is at this time, here is the updated graph of active listings I’ve been including in my newsletters each month. The numbers of oceanfront listings (127) and non oceanfront listings (225) have both reached new lows. 

Consider Selling Now Whether You Need To Or  Not

If you have any “reason” to sell, now is the best time in 15 years (You will see this statement again).  Your “reason” could be: I rarely if ever use the condo any more; I overpaid during the last bubble and have been waiting 15 years for prices to go up; I would rather invest elsewhere (real estate in a different area, different type of investment altogether); I want to pay off bills/debts; I’m going to blow it on a trip to Vegas; I want to simplify my life; etc. 

Even if you have no “reason” to sell - think about it anyway (and contact me for a free evaluation). Several of our clients have recently sold at great prices even though they had originally not considered selling at all. When presented with the quick (big) profits they could make, they just couldn’t turn down the opportunity. We had investors (some of whom had just bought) that realized they could make more on a sale now than they could through years of hard-earned rental income (and without the risk). Others were second home owners who did the same math and determined that, with the proceeds from their sale, they could vacation anywhere they wanted year after year for the rest of their lives. Call us for an evaluation! 

In addition to the higher prices, oceanfront and resort condos have been selling faster and the contract terms have been better than they have been in many years. Many buyers are paying cash with few or no contingencies. Even with my financed offers, many of the buyers have agreed to waive the appraisal contingencies and pay any differences between the appraised values and the agreed upon purchase prices. Requests for repairs have been minimal compared to before too. 

Here are 3 graphs which illustrate just how unusual our current market is. 

These graphs, when examined together, present a seemingly contradictory picture and they illustrate why recent closed sale prices can be deceiving in a zero inventory market (and why we could sell your condo for way more than recent sales would lead you to believe). The number of sales in 2021 increased by a whopping 65% over 2020 but the average price only increased by 7.4% and the median price only increased by 2.7%. With all those sales, why didn’t prices go up more?

The reason for the disconnect is that all those listings had to be sold (at the prices they’ve been at for years) to get down to that magic “zero” inventory state that makes buyers willing to pay higher prices. This didn’t happen until right at the end of the year, especially for the condotels, which make up the majority of the volume of sales. Almost all of the highest prices were paid very late in the year but there were not enough to change the average or median very much. Incidentally, there were quite a few listings under contract at higher prices which have been closing in 2022 so those averages should be higher.

The huge number of sales also presents a question - why did so many buyers decide to buy oceanfront condos in 2021? In particular, the pace of condotel sales seemed to accelerate at the end of the year. Recent stock market uncertainty may have contributed to an influx of interest in real estate as an alternative investment strategy. However, I think the biggest driver for increased condotel buyer interest was the fact, as the year went on, it was becoming apparent that the rental incomes for 2021 were going to far surpass those of any previous years’ (by 20% to 35% in many cases). Condotel prices have always had a strong correlation to rental incomes - incomes up / prices up, incomes down / prices down.

Rental incomes have a much smaller effect on prices for non-condotel resort condos. These market segments which sold fast earlier (non-condotels in NMB) started appreciating in 2018 and 2019 while the condotels in Myrtle Beach didn’t really start appreciating until late in 2021. 

So what’s going to happen in the coming months?

The one statement I can make about the current market with absolute certainty is that now is the best time to sell in over 15 years. 

Current owners are split in their opinions as to the market direction in the coming months. Many owners I’ve talked with think they should wait to sell because they are convinced that prices will go higher in the near future. Many other owners I’ve talked to actually want to buy more condos but they are choosing to wait because they are convinced that prices will fall rather than go higher in the near future. Who’s right? 

The factor that is most likely to end this seller’s market (and which does not involve any doom and gloom) is simply for more owners to list their properties for sale because of the higher prices. The trajectory and eventual peak of the market will be determined by the relative pace of new listings verses buyer demand. If buyer demand keeps up with the increased listing pace, prices should at least stay high or possibly increase more. If the listings increase faster, prices will level off or possibly drop. Days on the market will certainly increase and seller’s will not be able to negotiate terms as favorable as they can now. The difference in selling your property when you are the only listing versus being just one of several nearly identical condos is huge. If you decide that selling makes sense, the safest bet might be to get your property on the market ASAP.

The truth is that no one, including me, knows when the market prices will peak and if prices will remain high or fall back. The only time we will be able to identify the peak is many months or even years after it has passed. I also don’t think there is a general statement or recommendation which would be useful to all owners. Some properties have more potential upside or downside than others.

While these are exciting times for owners (and buyers), keep in mind that condos still sell whether we have a buyer’s market or a seller’s market or something in between. What’s different is that the price changes are gradual, the days on market are longer and the negotiations are tougher - in other words, normal real estate as usual. And we can help you buy or sell in that market too! 

For now, please contact me to get an evaluation of your property. You will be glad you did!

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!

Here are some new reviews published in Zillow. 

• I know Gene Carter from 2004. He provides great knowledge of present market condition. He is always available to take a phone call, communication is excellent. He and his stuff provide Outstanding service and great results. My unit was sold in one day. I recommend to use Gene's service to buy or sell in Myrtle Beach. Jeani. Caribbean. Myrtle Beach.

• Gene is very knowledgeable about the real estate market in Myrtle Beach. He responds quickly to any issues and offers good advice when needed. My husband and I feel very confident in recommending him. Susan. Carolina Dune. 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 130 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 - December 2021

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