2010 - A Stable Market

Where will the market be in 2010?

First let's look at what the market did in 2009.

The figures below show sales of residential homes (excluding manufactured homes), townhomes, and condominiums in the Myrtle Beach areas for 2008 and 2009. The numbers and figures were compiled using actual sales recorded in the Coastal Carolina Association of Realtors MLS for those two years and should not be used as your only source of information in making a decision to purchase or sell a property in the Myrtle Beach area. These figures may not include all sales in the area and may also include a few sales of properties located on the outskirts of the Myrtle Beach area. The dollar figures have been rounded up or down to the nearest $1000.

Residential homes (excluding manufactured homes) sold in 2008 were approximately 3100 and in 2009 approximately 3250. The Average sales price of these homes in 2008 was $278,000 and in 2009 $239,000. The median sold price of these homes in 2008 was $210,000 and in 2009 $185,000.

In the condominium market the approximate number of properties sold in 2008 was 2150 and in 2009 the approximate number of properties sold was 2400. The Average sales price of these properties in 2008 was $208,000 and in 2009 $172,000. The median sold price of these properties in 2008 was $151,000 and in 2009 $125,000.

In the townhome market the approximate number of homes sold in 2008 was 450 and in 2009 the approximate number of homes sold was 325. The Average sales price of these homes in 2008 was $204,000 and in 2009 $160,000. The median sold price of these homes in 2008 was $175,000 and in 2009 $140,000.

As you will note the residential sales in 2009 compared to 2008 increased by almost 5% however the median sold price range decreased by almost 12%. In the condominium sales the number of sales increased by 12% but the median sold price decreased by a whopping 17%. Sales of townhomes faired much worse as sales decreased by almost 28% and the median sold price dropped by 20%.

Now what does all of this mean for 2010?

Based on the sales in 2009 versus 2008 I expect a continued increase in properties sold both in the residential and condominium markets thus reducing the inventory. Also based on the recent sales in late 2009 we can expect prices to stabilize and possibly could see an increase in market prices as the year continues to grow. Unfortunately the townhome market will continue to struggle since there is not much of a market for townhomes, mainly due to the available of quality ocean properties, and prices may continue to slip.

With the probability of the reduction in inventory for 2010 and prices stabilizing and possibly heading upward Buyers still reluctant to purchase during a downtrend may have to rethink their position if they wish to purchase the best properties at the best prices. On the other hand Sellers have now realized that they must reduce their prices to the current market values if they want to have their properties sold. Consequently with an amble supply of Buyers and a reduction in inventory we should see this market turn around, at least in sales for 2010. The only holdback to this would be the banking industry not passing on to the consumer the benefits the government has given these lenders not only in financial support but also in reduced borrowing rates from the Federal Reserve. The banks must open their doors for business again with the same practical lending guidelines they were accustomed to prior to 2004. Presently they have gone from one extreme to the other. This is particularly true for the condominium market.

That being said smart Buyers should recognize that the current market creates an excellent time to purchase a property. The Buyers who choose to wait much longer may be saying, in years to come, what all of us heard in 2005 "I should have purchased this property when I had the chance two years ago"! Sellers, on the other hand, should not take this as an upswing in market pricing. It is not. Seller's attempting to price their properties for what they might have commanded in 2005 or even higher than what comparative properties sold for in 2008 and 2009 will be pricing their properties out of the market and come up empty handed.

In 2010 - A Stable Market.
Sellers Sell ... Buyers Buy…. Prices Stabilize.
A Win - Win for all.

Realty Times