We are nearing the halfway point of 2012 and it is hard to believe that we will be discussing the new year soon. The declining real estate market began about seven years ago in the Myrtle Beach area. I can remember people thinking the market was still going up in 2006 to later find out that they guessed wrong.
I remember those conversations in 2007 when potential sellers made the decision to hold, in hopes the market was going to rebound, to later be disappointed because that didn't happen. In 2010, property owners thought there was no way the market could go down any further, yet they were also proved wrong. Now we are in 2012 and property owners are hoping the market is on the rebound again.
What I find interesting is that in all of the years mentioned above, it was emotion that influenced the owners' actions. Many decisions are still being made by what one "needs to happen" versus what is likely to happen based on the facts. The fundamentals of any market will always dictate the direction of that market. Let's look at the fundamentals of the Myrtle Beach real estate market to determine how to manage your investments.
1. Inventory supply levels have decreased (slightly)
2. Buyer demand has remained flat. (some months higher and some lower)
3. Average Days On the Market was decreasing, yet now seems to be taking longer again.
4. Low-priced New Construction is starting to saturate the market again. (Not good for current owners.
5. Banks are approving short sales frequently now. This is the new "Distressed Market".
Based on the fundamentals in Myrtle Beach, we are likely to see a slight decline over the next few months. The biggest concern that I see is that we are now in the better selling season of the year - yet the market is not showing strong signs of recovery. If it is not recovering at this time then what can we expect in the fall and winter months?
We all know that the volatility of the stock market effects the vacation real estate market. When the consumer lacks confidence in the economy, then they lack confidence in buying resort investment property, second homes, or making a move towards retirement.
I recommend that we remove all emotion for a moment and look at the fundamentals of our investments. In this economy, investors must find ways to eliminate or reduce negative cash flow. Homeowners must find a way to reduce expenses or move to their next home while prices are down. If you are underwater on your mortgage, take advantage of the bank's willingness to negotiate.
I can offer you multiple solutions no matter what your current situation is at this time. The one thing I suggest most is to Do Something Now. Don't just hope the market rebounds. A lot of people were doing that with the stock market over the last 6 months and look what happened. It started to feel good and then all of the profits were gone within a few weeks.
Take advantage of me as your resource for real estate information. This company and I have been selling Myrtle Beach real estate for more than 17 years, and we have seen the ups and the downs of the market. We have the knowledge to effectively guide you through these times. We are committed more than ever to helping our clients make the right choices.
Thank you for the time and the opportunity to Be your Solution!