Dear Gene Carter Team,
Our sales market is still crazy busy. Available inventory is scarce in most oceanfront and resort condo complexes. Prices are heading up.
Owners in multiple resorts reported their highest April rental income totals ever.
Inventory for oceanfront and resort condos continues to drop precipitously after about 12 years of being exceptionally stable. As of May 24, there were only 418 active oceanfront condo listings on the entire Grand Strand and 290 active condo listings not on the oceanfront. See updated graph. The following numbers tell the full story of just how busy the market has been.
There are currently 895 oceanfront condo listings but only 418 of them are active because 477 are under contract (pending).
There are currently 1425 current listings that are not oceanfront but only 290 of them are active because 1135 are under contract (pending).
Condos are only typically under contract for 60 days at most. This means that almost all of these new contracts have been written in the past two months.
This also illustrates another characteristic of the current market - it’s buyer driven. There are actually two ways inventory levels can drop. One way is for buying to continue at the same pace while fewer new listings enter the market. The other way is for the pace of buying to grow faster than the pace new properties are listed.
Strangely, new listings and closed sales have moved almost in unison over the past 12 years - which is why inventory levels and prices have been very flat with little appreciation. (See graph below which shows new listings for oceanfront condos and closed sales from 2015 to 2020). The pace for new listings is running about the same so far in 2021.
To sum this all up, oceanfront condos are still being listed at about the same rate they have for a number of years This means the huge drop in inventory and accompanying appreciation is being created almost entirely by increased buyer demand rather than any contraction in the supply of listings.
Just how low is the inventory? (See chart showing number of active listings in dozens of large resorts - many having no active listings at all)
So how much have prices gone up so far? According to MLS market stats, the average sale price for ALL condo/townhouses on the Grand Strand has gone up about 15% since the beginning of 2020. In high demand buildings with extremely low or no inventory, prices have increased the most, up to 20 %or 30%.
Remember that prices only go up when inventory drops to little or none. We will know a lot more about where the prices are going in the next several months after the current glut of pending sales closes. The appreciation rate will depend largely on two factors - and these can vary from building to building. One factor is whether or not the current extremely high buying demand continues at this pace. The other big factor is whether or not listings start appearing on the market at a faster pace.
There are still some bargains out there, particularly in the condotel buildings.
Myrtle Beach oceanfront and resort condo prices are still low compared to other resort areas around the country.
Wouldn’t you rather buy into a market where prices are going up than one where they are going down?
You should partner with a knowledgeable agent or team (like The Beach Pro Team) that can use expertise and technology to help you achieve your goals.
Now is the best time to sell, in almost any resort, in the past 12 years. Prices are moving up and reasonably priced listings are selling quickly.
The best time to sell is when you have little or no competition and strong buyer demand. If you own in any of the resorts in the charts below, now would be a super time to sell.
Remember that conditions can change quickly. The current strong buyer demand could fade. Also, I fully expect more listings to come on the market in the next few months to take advantage of the current seller’s market. Take advantage of the situation now.
As a seller, you should partner with a knowledgeable agent or team (like the Beach Pro Team) to maximize your particular situation.
By the way, our residential housing market is busy too. In fact, Teressa has helped several more buyers find homes over the past month. If you or someone you know is interested in purchasing a home in the area, please let me or Teressa know.
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,
Our sales market is still crazy busy. Available inventory is scarce in most oceanfront and resort condo complexes. Prices are heading up. I’ll cover this in much more detail but first, here are a few local news updates.
Southwest Airlines has now started flights to and from Myrtle Beach. The airline will offer nonstop flights to at least 10 destinations across the South and Central U.S. and connections to dozens more around the nation.
The Carolina Country Music Fest is back. Over 40 country music stars will be there for the event at the site of the old Pavilion in Myrtle Beach June 10-13. Headliners include Luke Combs, Darius Rucker, Eric church, and Jake Owen. https://carolinacountrymusicfest.com/