Myrtle Beach ~ Buyers drawn to new condos as resale prices rise

As the price gap between new and resale condominiums narrows in Horry County, analysts say it will become more attractive for buyers to look at new condos.

Dramatic price increases in condo resales have brought that average price closer to the prices of new condos, said Carl Van Horn, analyst with Market Opportunity Research Enterprises, a real estate research group in Rocky Mount, N.C.

In the first quarter of 2005, the average price of new condos was $197,154 and the average price of resale condos was $179,242 - about an $18,000 difference.

In the first quarter of 2006, the average price of new condos increased to $214,282 and the average price of resale condos increased to $207,619 - about a $7,000 difference.

“There’s been enough upward pressure on resale condo prices that it’s more attractive to look at new condos,” Van Horn said.

Those higher prices are making resales less attractive and will eventually push up new condo prices, Van Horn said.

He expects next year there will be higher average prices on new condos and an increased gap in the difference between resale condos.

Source: Jenny Burns, The Sun News, Myrtle, SC