Myrtle Beach Oceanfront: Where have all the buyers gone? (Part 1 of 3)

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)