Grand Strand Real Estate News - July 2022

July 2022

Volume 2022 Issue 7

Dear Gene Carter Team,

Summary

I mentioned in my last newsletter that the market was cooling down. There are now indications that we are (hopefully) transitioning into a normal healthy market. 

At this time, listings are still definitely coming on the market faster than they are being bought (See chart below). There are now 538 active oceanfront condo listings, up from 482 last month and 121 on March 7. There are now 664 active non-oceanfront listings, up from 593 last month and 184 on March 7.

Although the number of listings is increasing, the number of interested buyers does not appear to have dropped off very much. This is great news. When prices increase 30% to 60% in 6 months, the most likely end game is a crash - which is what happened after the most recent superheated seller’s market (2003 to 2005). As prices topped out, buyers got scared and practically stopped buying altogether. For years. Oceanfront condo prices plummeted 50% to 75%. A soft landing, with buyers making offers and prices remaining at or near the top, is a far better result. 

However, with more listings from which to choose, we’ve seen a big difference in the buyer’s attitudes. They are back to the customary practice of offering lower than asking price and negotiating. The frenzied “auction” mentality is gone. True market value is now generally at the approximate price level of recent closed sales - not at far higher asking prices. In other words, buyers are back to behaving rationally and cautiously. 

Buyers

You have more listings to choose from than at any time this year. 

You may be able to negotiate a price lower than the asking price.

Grand Strand resort condos are still great buys - selling at prices far below rebuilding costs or prices for comparable properties in other coastal markets. 

Please contact us if you are considering purchasing in our area. It’s a big confusing market and Teressa can help you find the best property for your needs at the best price.

Sellers 

As I always advise late summer of every year, take a few minutes to think about whether or not you may sell in the next 12 months. If it’s a possibility, now is the time to do it to max out your rental income if you rent and to beat the normal offseason sales lull. I will be glad to provide you with an estimated market value for your property.

Your property is worth way more than it was a year ago. For now at least, prices are hovering at the top of the market. You have not missed the boat. 

The asking price has to be reasonable to attract buyer interest. This has actually always been the case (except during the recent craziness) and it’s especially important now that listing inventory is on the rise.

Expect offers based on recent comparable closed sales regardless of your asking price. See below for exceptions (“Listings with special features”).

Keep in mind that appraisers also only consider closed sales. Buyers are no longer willing to make up the gap out of pocket if an appraisal comes in low.

Most listings are not selling instantly as they did a few months ago. Expect multiple showings and inquiries and possible price adjustments to find the right price for the right buyer. In other words we are in a normal market.

If you rent your condo, now is an ideal time of year to sell - allowing you to pocket all of your peak summer income. 

Strongest Market Segments

Some segments of the market are stronger than others although as the number of listings increases, this will probably change. The following comments are generalizations. The exact situation for each property is different. Please contact me for a free market analysis of your property.

Large condos (2BRs or more), particularly on the oceanfront, are still in relatively short supply and the prices are generally holding steady or slightly increasing. 

Oceanfront listings of any size in North Myrtle Beach are also still very limited and prices are stable or increasing slightly. 

1BR condos and efficiencies are actually dropping in value in many resorts as inventory rapidly increases. If an owner wants to take advantage of today’s high prices, the sooner the better. 

Listings with special features - substantial upgrades, exceptional views, rare floor plans, etc. - still can command higher prices than listings without these features. 

The previous paragraph is especially important in determining the values for properties off the ocean. When there were practically no listings, buyers took what they could get. Now they have choices and they value premium views and locations. 

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

Full Newsletter

Greetings from the Grand Strand!

I mentioned in my last newsletter that the market was cooling down. Based on what I’ve seen in the past 30 days, I’d like to expand on that a bit. There are indications that we are (hopefully) transitioning into a normal healthy market. 

At this time, listings are still definitely coming on the market faster than they are being bought, resulting in an increase in the active inventory level. Below is the chart I’ve been updating each month. There are now 538 active oceanfront condo listings, up from 482 last month and 121 on March 7. There are now 664 active non-oceanfront listings, up from 593 last month and 184 on March 7.

Although the number of listings is increasing, the number of interested buyers does not appear to have dropped off very much if my team’s recent experience is an accurate gauge. We have been covered up with buyer leads, showing inquiries, and offers. 

This is great news. When prices increase 30% to 60% in 6 months, the most likely end game is a crash - which is what happened after the most recent superheated seller’s market (2003 to 2005). As prices topped out, buyers got scared and practically stopped buying altogether. For years. Oceanfront condo prices plummeted 50% to 75% and they still have not completely recovered. A soft landing, with buyers making offers and prices remaining at or near the top, is a far better result. Of course I expect to see prices increase again some time in the future but, for now, I just hope the current situation holds. 

However, with more listings from which to choose, we’ve seen a big difference in the buyer’s attitudes. They are back to the customary practice of offering lower than asking price and negotiating. The frenzied “auction” mentality is gone. We are also seeing far fewer multiple offers. The result is that the rapid appreciation of earlier in the year has now flattened for most segments of the resort condo market.

A few months ago, when there were very few listings, it was standard practice to set each asking price 5% or 10% above the most recent comparable sale prices and wait for multiple offers to drive the price even higher. That is how prices rose to the current levels so quickly. Today’s sellers are benefiting from these higher prices.

Fast forward to today. True market value is now generally at the approximate price level of recent closed sales - not at far higher asking prices. Note that there are cases in which upgrades, exceptional unit locations or other special features result in higher prices. (See below). Overall, however, the buyers we’ve dealt with in the past couple of months are only willing to pay about what the most recent buyers paid for comparable properties, regardless of the asking prices. In other words, they are back to behaving as rational cautious buyers. 

Buyers

You have more listings to choose from than at any time this year. 

You may be able to negotiate a lower price rather than just being forced to pay the asking price or your “highest and best” in a multiple offer situation. 

Grand Strand resort condos are still great buys - selling at prices far below rebuilding costs or prices for comparable properties in other coastal markets. 

Please contact us if you are considering purchasing in our area. It’s a big confusing market and Teressa can help you find the best property for your needs at the best price.

Sellers 

As I always advise this time of year, take a few minutes to think about whether or not you may sell in the 12 months. If it’s a possibility, now is the time to do it to max out your rental income if you rent and to beat the normal offseason sales lull. I will be glad to provide you with an estimated market value for your property.

Your property is worth way more than it was a year ago. For now at least, prices are hovering at the top of the market. You have not missed the boat. Be aware, however, that the current market values are not guaranteed to stay there. 

The asking price has to be reasonable to attract buyer interest. This has actually always been the case (except during the recent craziness) and it’s especially important now that listing inventory is on the rise. If the asking price is too high, it is counterproductive - keeping potential buyers from even considering the listing, effectively making your listing invisible and thus shrinking your pool of prospects. 

Expect offers based on recent comparable closed sales regardless of your asking price. See below for exceptions (“Listings with special features”).

Keep in mind that appraisers also only consider closed sales. The market was so hot a few months ago that many buyers who financed were willing to waive the appraisal contingency and agree to pay the difference if the appraised value came in too low. Buyers are no longer receptive to that.

Most listings are not selling instantly as they did a few months ago. Expect multiple showings and inquiries and possible price adjustments to find the right price for the right buyer. In other words we are in a normal market.

If you rent your condo, now is an ideal time of year to sell - allowing you to pocket all of your peak summer income.  

Strongest Market Segments

Some segments of the market are stronger than others although as the number of listings increases, this will probably change. The following comments are generalizations. The exact situation for each property is different. Please contact me for a free market analysis of your property.

Large condos (2BRs or more), particularly on the oceanfront, are still in relatively short supply and the prices are generally holding steady or slightly increasing (compared with recent closed sales). 

Oceanfront listings of any size in North Myrtle Beach are also still very limited and prices are stable or increasing slightly. 

1BR condos and efficiencies are actually dropping in value in many resorts as inventory rapidly increases. If an owner wants to take advantage of today’s high prices, the sooner the better. 

Listings with special features - substantial upgrades, exceptional views, rare floor plans, etc. - still can command higher prices than listings without these features. Keep in mind that these higher values are only relative to the values for comparable properties without these features. In other words, if the prices for the “average” condos decrease, the prices for the exceptional condos will decrease as well. 

The previous paragraph is especially important in determining the values for properties off the ocean. For instance, a top floor unit with vaulted ceilings overlooking the golf course will be able to command a higher price than a condo (in similar condition) in the same resort on a lower floor overlooking a parking lot. When there were practically no listings, buyers took what they could get. Now they have choices. 

That’s all for now. Check out 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 is a new review published in Zillow. 

• Gene and his team sold two condos for us. His knowledge of the area helped get us top dollar quickly. They were always available at a moments notice if we needed anything. I highly recommend giving them a call if you’re considering buying or selling! Jennifer. North 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 - June 2022

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

Gene Carter

Beach Pro Team

Cell Phone:  843-455-4785

Email: GeneCarter@BeachProTeam.com

Website:  www.BeachProTeam.com