The Myrtle Beach oceanfront market is slowing down. At one of the more popular oceanfront condo resorts, over 20% of the units are listed for resale. At others, sellers have lowered prices and are offering sales incentives in an effort to find buyers. Inventories are high and buyer interest is low.

Where have all the buyers gone?

A partial answer is - into hibernation over the winter. Myrtle Beach typically experiences a general real estate slowdown during the winter months. The market usually picks up in the Spring - so we’ll know better by the end of March how things are shaping up.

But there seems to be more to it than simply a seasonal slowdown.

New investors are finding the oceanfront condo market less attractive. Prices have skyrocketed over the past couple of years and rental rates have not kept pace. Tourism growth is lagging behind the growth of new construction,further diluting the rental market.

New buyers find it very difficult to cash flow properties when they add in Property Owner Association and Rental Management fees. And, with the slowdown, flipping possibilities are greatly diminished. Oceanfront condos will have to be held for a while for further price appreciation.

Where will the new buyers come from?

A new oceanfront buyer profile is emerging. They want oceanfront because of its intrinsic value. They want oceanfront for their personal use - family or business. They want oceanfront for long term price appreciation. And, they want oceanfront because of the tax advantages that diminish any cash flow or holding costs negatives.

The buyers are out there but they’re different from the investors that have driven the oceanfront market in the last couple of years. In this changing oceanfront market, sellers and buyers need to consider new strategies.

For more information on “Buying & Selling in a Slow Market” contact Barbara Chartier by phone 843-902-0204 or email barbara.chartier@century21.com .

Coming

• Myrtle Beach Oceanfront: Buying strategies in a slow market. (Part 2 of 3)
• Myrtle Beach Oceanfront: Selling strategies in a slow market. (Part 3 of 3)

Myrtle Beach is gradually becoming a year-round place to live, work and play. And that’s good for real estate - more things to do, more people to do them and more jobs to make it all happen. That means more need for housing.

Jobs: Recent statistics from South Carolina Labor Market Information indicate an increase of 18,000 jobs in December ‘05 over the previous year. About 4,300 of those were in construction, and 7,800 were in educational and health services. Even the traditionally seasonal hotel/tourism industry added jobs in December. “We are busier earlier and longer,” says Melissa Gause, corporate manager for Lakewood Camping Resort. Area resorts are working hard to attract conventions to their facilities year-round and it’s paying off. “Because of our convention business, it is not a huge big difference in regular and summer employment,” says Cindy Hull, sales director at the Marriott-Grande Dunes.

Tourism: On another front, Myrtle Beach will be breaking into the growing sports tourism market with the Ripken Experience - Myrtle Beach. In the past five years, 40 percent of U.S. adults attended an organized sports event, competition or tournament as a spectator or a participant, according to the Travel Industry Association of America. The Ripken Experience - Myrtle Beach is the first phase of a planned 300-acre sports development - to be used not only for youth baseball… but also for football, soccer, even band competitions during the fall and spring. Players and families will stay at Myrtlewood Villas. Again, the idea is to attract visitors to Myrtle Beach year-round.

Retirement: Don’t forget the 79 million baby-boomers who begin to turn 60 this year. Myrtle Beach continues to attract second home buyers and relocation / retirees who are just plain tired of shoveling snow. There’s plenty for these active folks to do beyond the beach, shopping, eating out and golf. The annual Job and Volunteer Assistance Fair for Senior Citizens held at the Myrtle Beach Convention Center attracted 400 people to 50 booths of employers and volunteer groups. Several groups seeking skilled volunteers found seniors with ideal job experience and free time. The Friendship Medical Clinic, a free clinic that serves low-income people, found potential volunteers in two nurses and a retired doctor, Director Terri Harris said. Today’s “seasoned” citizens have spent most of their lives trying to make a difference in the world. They don’t want to stop now when they relocate to Myrtle Beach.

So… it’s happening - slowly but surely. Myrtle Beach is becoming a year-round destination with the need for year-round places to live. And that’s good for real estate.

Resources:
More workers keep jobs in offseason by Dawn Bryant The Sun News
Anticipating the Ripken Experience by Dawn Bryant The Sun News
Senior fair attracts elderly, teens by Emma Ritch The Sun News