Myrtle Beach Real Estate July 2012

Greg Harrelson - Myrtle Beach Realtor

Is the Market Really Changing?


The most asked question from owners of Myrtle Beach real estate over the past 30 days has to be, "Is the market changing?". It appears there is a lot of confusion in the market due to the mixed messages we receive everyday. One news channel says the economy is in recovery, while the next channel says this recovery is fake and we need to be defensive with our spending. The same mixed messages are coming in our mailboxes, also. One real estate agent claims the market is hot while the next agent sends us a story about the foreclosures and short sales that are about to dump on the market.

What should we believe?

I have always been clear with you when I am stating a fact versus stating an opinion. Today, I want to share an opinion on the market. My opinion is always based on facts because I follow my own opinions when it comes to personal real estate investing. An opinion based on anything other than facts would mean I was at risk of making a buying or selling mistake.

I believe the next 90 days will be the best 90 days we have had in real estate for the last 6 years. So, why am I so optimistic? It is the beginning of July, and in 90 days we will be in September when the biggest bulk of buyers start to go home. Right now, we have a high demand because we are in the best selling season. When we look at total sales, we see an increase in activity, yet the increase in sales are consistent with the seasonal shift we have each year.

One fact you need to know is that there is less inventory on the market today. This is the most important trend in the Myrtle Beach market today. Inventory is down during our peak selling season and this will remain the case for the next 90 days.

This is "The Perfect Positive Storm" ... Inventory is low during our peak season! It is clear to me that this will continue for the next 90 days and this is why we are able to get our sellers more money for the sale of their property.

So what happens after 90 days?

We know for sure that demand will go down when the summer is over. It happens each year. The critical factor that we need to look at is the potential sellers. It seems that a lot of owners who want to sell have been holding back from listing their property on the market. I hear that some owners are waiting until after the election while others are renting their properties and want to earn all of the summer income before they sell in the fall season. In other words, there are people wanting to sell who are waiting a few more months before they list it with an agent. Based on this trend, we are likely to see increasing inventory levels starting in September and carrying through until next spring.
We all know what it means to have increased supply at the same time we have decreased demand.

Some of you need to take advantage of today's "Perfect Storm".

If you are thinking of selling your real estate anytime in the next 9 months, you may need to consider taking advantage of this window of opportunity by selling right now. Those who sell before the season ends will likely sell at the highest prices. If you're worried about rental income, don't, because if you were to sell now, you would still earn all of the income and let the next buyer carry it through the off season. If you are a home owner looking to relocate, please research the market where you are headed because many of those markets are already appreciating - meaning you may need to buy now before that market becomes unaffordable. If you are planning to keep this real estate as a long term investment, maybe 5-7 more years, then maybe you should do nothing more than observe.

I hope this month's newsletter helps you make some important real estate decisions. We helped over 100 families buy or sell last month, would love to help you when you are ready. I thank you for allowing me to be your Myrtle Beach real estate resource, and as always, we are here to answer your questions and address your concerns. Our goal is to Be The Soution for all of your real estate needs.

~Greg Harrelson, Century 21 The Harrelson Group