Myrtle Beach job growth balances home prices

Myrtle Beach’s strong job growth makes it less vulnerable to a housing bubble despite 60 percent appreciation in the past five years.

A new report by RBC Financial Group, released this month, analyzes home-price appreciation and job growth in cities in the Southeast.

 The national average for home appreciation over five years was 56.5 percent.

 In the same period, South Carolina’s appreciation was 31 percent and North Carolina’s housing appreciated 28 percent.

 These areas have seen strong employment growth - which means if home prices begin to decline, residents will have the cash flow to make mortgage payments, the report says.

National studies show wages are increasing and consumers are taking on more mortgage debt and paying off credit card debt.

 Myrtle Beach’s one-year appreciation for resale single-family homes is 24 percent through the second quarter - much higher than the national average of 10 percent.

 But Myrtle Beach’s job growth is highest in the state at 22 percent over five years - also far above the national average of 3.2 percent.

The report doesn’t specify what kind of jobs are growing on the Strand, but, statewide, the largest increase has been in construction - which is likely the case in Myrtle Beach, said Tom Maeser, market analyst and president of the Fortune Academy of Real Estate.

 Myrtle Beach has had nothing near the 113 percent average of Florida’s five-year appreciation.

 That’s Maeser’s reason for believing real estate demand will pick up. “Myrtle Beach has appreciated horrendously to those of us who live here, but, to those coming from out-of-state, it’s still a very good deal,” he said.

Overall, the Southeast region has seen modest appreciation compared with other regions of the country, while wages and incomes rose, the report says.

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