Grand Strand Real Estate News - May 2022

May 2022

Volume 2022 Issue 5

Dear Gene Carter Team,

Summary

Our oceanfront and resort condo market is showing signs that prices are starting to top out after an incredible (but quick) run. With prices 30% to 50% higher than they were just a few months ago, some buyers are hesitating and trying to negotiate prices. 

February appears to have been the low point for oceanfront and resort condo inventory with the number of listings increasing steadily since then (See chart below). As of today, there are 405 active oceanfront listings, up from 321 last month (and a 337% increase since February). The number of non-oceanfront listings increased from 318 to 473 since last month (a 246% increase since March).

Listings are not generally selling immediately now. Of the current 405 active oceanfront listings, 78% have been on the market for 15 days or more (See chart below). Of the 473 non-oceanfront active listings, 66% have been on the market for 15 days or more.

We are seeing price reductions again. I just skimmed through all 405 active oceanfront listings and counted 127 that have reduced the asking price at least once. 

Sellers - What to do? Be Happy! Your property is now probably worth 30% to 50% more than it was just a few months ago. If you have any reason to sell or if you just want to cash out, now could be as good as it’s going to get for a while. It’s been 15 years since we’ve had a sharp increase in prices so, if history repeats itself, you could be waiting until 2037 for the next comparable opportunity. 

Large oceanfront condo listings are still scarce - and selling for much more than they have in years - but buyers are resisting some of the ever-higher asking prices. It’s still a great time to sell - you just may have to negotiate now instead of expecting multiple buyers to bid up your price.

Now is also the perfect time to list to max out your yearly cash flow (if you rent your property). If you list now, it will still be 45 to 60 days before you close (best case) so you will be able to keep most or all of your peak summer income. 

Please let me know if you would like an estimate of your property’s current market value.

Buyers - What to do? The Grand Strand resort condo market is still way undervalued. Prices are far lower than those for comparable properties in other coastal markets so, even at the higher prices, there are still bargains. 

There are now more listings to choose from and the likelihood of a multiple offer situation is far less. 

Teressa has helped a number of buyers find their perfect properties. Please contact us if you are ready to buy!

Check out our usual Grand Strand Market Reports, Sales and Listing Updates, my Best Buys, and new Beach Pro Team reviews.

Greetings from The Grand Strand!

Let’s hope you are not tired of hearing about the exciting real estate market we are currently experiencing. It seems like I’m covering the same topic every month but after 15 years of flat prices and flat rental incomes, the extraordinarily fast appreciation and torrid sales pace remains the focus of my attention and these monthly updates should be of interest to every potential seller and buyer.  

Our oceanfront and resort condo market is showing signs that prices are starting to top out after an incredible (but quick) run. Many recent closed sales are at prices 30% to 50% more than they were just 6 months ago and new listings are generally coming in with asking prices even higher. Now, for the first time in many months, some buyers are hesitating and even (gasp!) trying to negotiate prices. 

Of course this was inevitable. Even during the recent crazy-busy months, I have mentioned in every newsletter that periods of rapid appreciation during “seller’s markets” in our area have been historically fast, furious and brief. Prices don’t go up forever in a straight line. It’s been a great ride for sellers and the result is that this is the best time to sell in 15 years. These recent changes are good news for buyers too because there are more available listings to choose from and it’s less likely that they will find themselves in multiple offer situations. Here are some stats to back up these observations.

February appears to have been the low point for oceanfront and resort condo inventory with the number of listings increasing steadily since then (See chart below). 

As of today, there are 405 active oceanfront listings, up from 321 last month (and a 337% increase since February). The number of  non-oceanfront listings increased from 318 to 473 since last month (a 246% increase since March).

*Refresher: The number of active listings in oceanfront buildings dropped from about 1200 in mid 2020 to 120 in February of 2022, a 90% decrease. This was one of the main reasons for the recent price increases - high demand and low supply. The pattern for condos off the beach was similar.

Listings are not generally selling immediately now. For about 5 months, almost every one of my new listings was under contract within 48 hours. When I looked at a list of all active listings during this time, it was difficult to find one which had been on the market for more than 10 days. 

Of the current 405 active oceanfront listings, 78% have been on the market for 15 days or more and 64% have been on the market for 30 days or more (See chart below). By the way, of the 473 non-oceanfront active listings, 66% have been on the market for 15 days or more and 48% have been on the market for 30 days or more.

We are seeing price reductions again. A few months ago, I could look at all the active oceanfront listings and see practically no price reductions. I just skimmed through all 405 active oceanfront listings and counted 127 that have reduced the asking price at least once. 

Sellers - What to do? Be Happy! Your property is now probably worth 30% to 50% more than it was just a few months ago. If you have any reason to sell or if you just want to cash out, now is definitely the time to pull the trigger. This could be as good as it’s going to get for a while. It’s been 15 years since we’ve had a sharp increase in prices so, if history repeats itself, you could be waiting until 2037 for the next comparable opportunity. 

Large oceanfront condo listings are still scarce - and selling for much more than they have in years - but buyers are resisting some of the ever-higher asking prices. It’s still a great time to sell - you just may have to negotiate now instead of expecting multiple buyers to bid up your price.

Now is also the perfect time to list to max out your yearly cash flow (if you rent your property). OK, let’s do the math on the timing. It will take a week or two to get the property listed (for professional photography, gathering of HOA and rental docs, etc. - all of which we will take care of), then presumably a week or more to receive an offer and get it worked out (best case scenario although no guarantee now) and then 30 days to 60 days to close. If you list now, you will be able to keep most or all of your peak summer income. We could also delay activating the listing a few weeks or try for an over-the-top price for a month or so and then reduce if necessary. 

Please let me know if you would like an estimate of your property’s current market value.

Buyers - What to do? The Grand Strand resort condo market is still way undervalued. Prices are far lower than those for comparable properties in other coastal markets so, even at the higher prices, there are still bargains. 

There are now more listings to choose from and the likelihood of a multiple offer situation is far less. 

Teressa has helped a number of buyers find their perfect properties. Please contact us if you are ready to buy!

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 are some new reviews published in Zillow. 

• Contacted Gene about selling our unit and he took over from there. He handled everything and any questions I had, he responded immediately. Had 2 offers the next day after listing and both were more than we expected. Would definitely use Gene again. Jim. Dunes Village. Myrtle Beach.

• Very knowledgeable of current market sales. Quickly listed and sold our condo. We were always updated throughout the process. Great attention to details. Lynda. Horizon. 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 - April 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

Gene Carter

Beach Pro Team

Cell Phone:  843-455-4785

Email: GeneCarter@BeachProTeam.com

Website:  www.BeachProTeam.com