Grand Strand’s luxury home market drops
The luxury home market has been booming on the Grand Strand in the past several years, but fewer million-dollar homes were sold this year compared with last year.
• So far this year, 115 homes costing more than $1 million have sold, compared with 124 in the same time period last year.
• Still, that’s way up from 2004, when 50 homes priced at more than $1 million were sold.
• The sales drop is not due to a lack of inventory. About 400 homes currently on the market are listed for at least $1 million.
Analysts say the drop is likely because many buyers are waiting to see what will happen to prices.
• “In this kind of market, you’re going to have a little [sales] downfall in all price ranges. Everyone I’m talking to says this is a short blip, and it will rebound in the spring. Many people are waiting until the first of the year to see what happens to prices,” said Tom Maeser, market analyst and president of the Fortune Academy of Real Estate.
• Maeser said the addition of luxury property is good for Myrtle Beach because the area now offers something for all income brackets. Luxury home purchases also stimulate the economy, he said.
In the luxury condo market, sales have been about equal to last year although more higher-end products have been added in the past year.
• Thirty-five condos costing at least $1 million have sold so far this year compared with 33 in the same period last year. That’s also way up from two that sold in 2004.
Analysts note sale prices are increasing by small amounts for single-family homes instead of large jumps like last year. Condo values, however, are falling.
• Investors have been watching the market and waiting to purchase during the past 14 months.
• Buyers are purchasing more as a second home than strictly as a rental property.
• Buyers recognize that in today’s market their rental income won’t cover their mortgage payments.
• Rental income now covers investors’ out-of-pocket expenses like taxes, utilities and insurance.
• Buyers are now purchasing for appreciation and personal use.
Source: Jenny Burns, Myrtle Beach, SC
