The current view on housing in our opinion, as well as the opinion of many real estate experts and economists, is that the market has bottomed and a slow recovery is currently in process. We believe this is especially evident in the Myrtle Beach area. The year-to-date sales and listing figures compared to 2011 figures show vast improvement (see Myrtle Beach Infographic – June 25, 2012). However, the most common question we are asked is, “What does recovery look like?”
Following are a few of the signals of a recovery as well as a few of the challenges that we face in this market:
- Overcorrected home prices play a vital role in the recovery process. This is where the market no longer relies on hope and accepts reality in the market. Correction in home prices has played a role towards the recovery in Myrtle Beach.
- Great affordability is an indication of a recovery. Low interest rates and overcorrected home prices are a great combination and signal signs of a recovery. This combination, while encouraging, does have it’s associated challenges.
- Modest construction is a sign of recovery. Supply and demand always plays a role and construction is an indicator that leads market direction.
- Declining resale listings is also an indication of a recovery. Myrtle Beach has now seen two back-to-back quarters of declining resale listings, which creates a healthy supply and demand.
- Rising rents are also an indicator that a recovery is underway. Myrtle Beach is beginning to see a trend towards a demand for rents and higher rent prices.
While all these factors are signals of encouragement and confidence in the Myrtle Beach real estate market, this is tempered due to a few challenges that face the Myrtle Beach real estate market. Those challenges that are present include:
- New Layer upon layer of regulatory change in the mortgage industry. These types of regulations make it of extreme importance for a home seller and home buyer to have professional real estate agent representation. A professional can help navigate the nuances that are present in just about every real estate transaction in Myrtle Beach, as well as provide advice that avoids a lost transaction or losing thousands of dollars.
- A mortgage industry that operates on an archaic technology infrastructure. New times bring new challenges. Lenders are overcome by what they feel is an adverse regulatory environment that make many of the nuances in purchasing a home almost comical. That is unless you are the buyer or the seller! The advice and guidance a professional real estate agent can bring to such a transaction is of utmost importance, not only to a successful closing but to sanity.
If you are in the market to purchase or sell, today’s market environment in Myrtle Beach is very promising. We would be glad to help you.