Myrtle Beach Condos

Over the past several months, the inventory of Condos in the Myrtle Beach Area has dropped significantly from what it was in early spring. Does this indicate an increase in market activity? This indicator is deceiving, but it actually means that the condo market is not moving. I have had several of my clients pull their condos from the market or wait on them to expire, and not re-list. The reasoning behind this is that we are basically back to 2004-2005 prices when it comes to the condo market and many of these sellers bought these condos in those years. Those that didn’t get out in the middle of 2006 may have to wait a few years for the condo market to pick up again.

 

One of the biggest factors affecting the condo market is the cost of the insurance policies for the associations. About the lowest fee that you can get is $250/month on the golf course or $360/month oceanfront. Take into consideration the fee increase, and you have the reason that people are not interested in purchasing these as investments anymore. Also homeowners from the Northeast can not sell their properties back home. This drops our demand, because that is the area that roughly 80% of our buyers are coming from. I have seen the prices of the condos come down almost as fast as I saw them go up a few years ago.

 

Although many people think that the condo market is slow and that properties are not moving, but the number of condos being sold is right back to where it was in 2003. The average days on the market right now for a Condo in Myrtle Beach is 273 days. When out with my clients, I always share these numbers and let them know that the market will correct itself. Right now the prices have dropped in Myrtle Beach and may drop further, but they will come up again. When they do go up, you don’t want to be the one sitting there saying “I wish I had bought then”.