The Myrtle Beach market continues to remain active. As we pass the mid-year, it appears that the overall numbers show a slight increase in sales, an increase in new listings coming onto the market, and very modest price fluctuations. Though the story in the news indicates things are going very well, the local MLS statistics indicate our market is very flat.
Personally, there are a few things that I am keeping my eyes on that could have a significant impact on the direction we are heading. It is too early to make predictions yet is time to start paying attention.
1. Interest Rates: We have been talking about the threat of higher interest rates and what it may do to the market. I think everyone will agree that interest rates have to go up at some time in the future, but we do not know when. In June, the interest rates increased by nearly 1%. They dropped about 30 days later, but in a very short time, we were able to see what could happen if this was a continuing trend. As soon as the interest rates temporarily increased, we experienced a 3% decrease in residential sales at a time when we have been seeing double dip increases in previous months. No one can prove that the decrease was a direct result of interest rate increases, but logic tells us that there had to be some connection. Btw…the number of "fall-throughs" also increased during that time.
2. Insurance Costs: We have been put on alert that insurance costs are going to increase in October. The reason I bring this up is to make everyone aware that we could see an increase in insurance costs the next time you renew your insurance. This will also apply to HOA’s, which may lead to an increase in HOA dues. I am not an insurance professional so you may want to contact your agent if you want to learn more about what will happen on your particular property.
3. Foreclosures: Shadow inventory…Is it real or not? I cannot answer that, but I do know that more Les Pendens were filed last month than we have seen in a long time. What does this mean? It means that more people were served foreclosure notices this month than in previous months - telling us that banks are looking to release new foreclosure inventory to the market.
As your Real Estate Advisor, I feel it is my duty to report accurate and relevant information to the consumer. It is much easier for me to deliver the "feel good" information about the market. If I did that, I would be hiding some important issues that we need to consider. I am an owner of property in Myrtle Beach just like you, and I am delivering the same information that I personally use in making my real estate decisions.
As always, we are committed to making you the most informed property owner in the Myrtle Beach market. We are on the ground working hard, so please let mus know if there is anything that we can do to help you with your real estate needs. For those thinking of selling in the fall, I recommend that you start now to beat the competition to the market. Supply is likely to increase during the fall and winter, making it a more price sensitive market….again.