We continue to experience a very active real estate market along the Grand Strand. In my office alone, we closed nearly 100 transactions in the month of May alone - making that one of our best closing months ever! As inventory levels continue to decline and the number of foreclosures slow, we anticipate staying on this path throughout the summer.
I was having a conversation with a few bank executives this last week. We were discussing the market, and whether we are in recovery mode or not. What I find interesting is that recovery is very subjective, and it depends on when and how much you paid for a property as to how it influences your opinion. The key about real estate markets is that the current state of the market has nothing to do with what we paid or when we purchased. Recovery is usually measured in 12 month periods of time, and relates to year over year increases or decreases. Due to the amount of information I will provide on this topic, please read "What is a Real Estate Recovery" for my entire explanation.
Here are three things that I want you to know:
1) It looks promising that the next 3 months are going to be the best 90 days we have had in years. I anticipate that we see another increase in the number of sales. We will sell them for more money, and sell them faster.
2) We NEED to keep our eyes on Insurance Rates – There was a recent article in the local newspaper that stated it was very likely that insurance rates could go up in October of this year. This change affects the rates on coastal properties because of the losses that they have suffered during all the various storms. I am not in the insurance business, yet this is a concern. We know if our insurance goes up than negative cash flow increases - and this makes real estate harder to hold as well as harder to sell - because the next buyer has to deal with higher payments.
3) Warning: We are likely to start seeing some very interesting headlines in the news. We will probably hear things like, “The Real Estate Market is on Fire”, “Inventory is at Historical Lows”, or “Make Money by Buying Real Estate”. We need to remember that headlines appeal to people’s emotions, so we need to be careful before making any business decisions based on headlines. There is a lot of information on the internet so it is important that you give us a call and let us help interpret how you may want to use this information.
We are here working everyday, so please continue to use us as your Real Estate Resource. I know a lot of people are calling, emailing, and mailing you in hopes of getting your listing or helping you to purchase a property. We appreciate you making us your preferred resource.
Please read, "What is a Real Estate Recovery"