Just like the crazy stock market, the real estate market around the Grand Strand is showing signs of mixed signals.
As you know, I keep my eye on the Myrtle Beach area real estate market on a daily basis. Of course, it is too soon to predict where we are heading, yet I am watching some key indicators to see if we can spot new trends. Keep in mind, it is too early in the year to know where we will end up but I do find this interesting.
As a company, we have been busy. We are writing more buyer contracts this year than we did during the same period of time last year. That is is good news, yet when we look at overall closings YTD amongst all companies in the market, they seem to be down roughly 15%. This is compared to the same time period last year.
Another interesting statistic is the number of listings coming onto the market right now. So far this year, there is an 11.48% increase in new listings coming on the market. Again, this is comparing YTD 2016 to the same time period in 2015. So, this compares apples to apples.
I have noticed that we are fielding a lot of calls from property owners that are voicing their concerns about the market. I think a lot of this is fueled by the volatility of the stock market versus anything that is really happening in our local real estate market. As we know, when people feel there is uncertainty in the overall economy, they tend to tighten up their spending.
There is some good news with mortgages. It appears the interest rates have decreased recently. The Feds increased them awhile back, however, they have fallen a little since then. This allows the buyers more time to borrow money at low cost.
Personally, I am uncertain where we are heading this year. The last few years have been good and I tend to believe we will see a flat market this year. Of course, this is ONLY an OPINION, yet this is what I am preparing for as a property owner myself.
If you are considering selling this year, I strongly urge you to make your move early in the year. If inventory (supply) increases, then you have more competition. The more competition you have, the more likely people will start cutting their prices and create a slight decline in property values.
Again, this is an opinion and I am in no way trying to lead you to believe that I have a crystal ball. I am just looking at the numbers and coming to a logical conclusion. I also think that individual properties will perform differently than others. Condos may perform differently than homes and land could also be different.
It always comes back to supply and demand. If supply exceeds demand then we risk a decrease. And, when demand exceeds supply then we see an increase in pricing.
The best thing for us to do is to have a discussion, review the market trends for your property and determine the right strategy based on your goals.
I hope you find this information helpful. I am committed to guiding you in the direction that helps you reach your real estate goals.
By the way, I have people emailing me from time to time asking me how I find buyers. I created the quick video below, explaining a few techniques that I use to attract buyers.
In the meantime, please let me know how we can help you with your real estate needs.