Myrtle Beach Trends ~ Condo sales down; Single-family sales up… slightly

It’s a BUYER’S MARKET on the Grand Strand as condo sales continue to slide, making little dent in a ballooning inventory. But single-family sales have held their own, topping last year’s record sales.

QUICK STATS- Third quarter 2006 compared with third quarter 2005:
Sales:
• Condos down 31 percent to 5,003
• Single-family homes up 1 percent to 4,506
Listings:
• Condos up 112 percent to 10,493
• Single-family homes up 60 percent to 5,291
Days on Market:
• Condos up to 186 from 89
• Single-family homes up to 143 from 104

PRICES - Real estate brokers say some condo prices are being cut, but single-family prices are holding steady.

• Insurance increases have especially hurt an already slow condo market where agents say they’ve lost sales in part because of a spike in homeowner’s association dues.

• Analysts said they expect renters to consider buying as condo prices fall.

INVENTORY

• Condos ~ Analysts say it will take more than a year to clear out the 10,493 condos on the market.

• Single-family homes ~ The market’s 5,291 single-family homes may take 10 months to be absorbed.

ANALYSIS - “I don’t look at it as a bad market. There are just two kinds of markets - buyers markets and sellers markets,” Maeser said. “We’re just going through a correction right now.”

• Sellers are having trouble backing away from the price their home would sell for in 2005.

• Buyers are aware the market has softened and aren’t willing to buy at any price.

• September and October have historically been good sale periods for condos on the Strand, but brokers aren’t seeing it pick up this year.

BUYER PROFILE - Maeser said the market is losing its rental income investor. Some have turned to the stock market after several years of investing in real estate.

• But the loss of the flippers - attracted to a hot condo buying frenzy - isn’t a bad thing, he said.

• “It’s not healthy to have that for too long. This has been good for the market,” he said.

Source: Jenny Burns, The Sun News, Myrtle Beach