Experts: Housing Hasn't Hit Limit

The Grand Strand's real estate market has shown the greatest sustained appreciation in condominium prices in the state, and there's no indication the increases will slow, according to the S.C. Association of Realtors.

The median condo price in Horry and Georgetown counties increased 16 percent in the first quarter of 2005, and Jim Peters, chief executive officer of the S.C. Association of Realtors, said it would take a substantial increase in mortgage rates to cause a slowdown in the area's market.

"The rate of appreciation has far exceeded gains on the stock market," Peters said.

The median price of condos in Myrtle Beach was $148,000 during the first quarter of this year, and Charleston's median price was $178,000. The median price in Hilton Head Island was $312,000.

Horry and Georgetown counties were the only coastal area to have a double-digit increase in median prices during the first quarter. Charleston had a 4 percent price increase, and Hilton Head Island had a 9 percent increase during the first quarter.

The Grand Strand market is driven mostly by a second-home and investor market, which is why a substantial increase in mortgage rates might not cause much of a slowdown, experts say.

"Clients I've talked with up North tell me that this boom has already hit up there and they want to get on the bandwagon as it starts down here," said one real estate agent.

Nationally, economists expect an overall slowdown in the housing market because of rising mortgage rates, but state officials say that won't happen in South Carolina.

"There is a shortage of housing in South Carolina, and while there might be a slowdown in the fourth quarter, we expect this year will be an all-time record of record years," Peters said.

To see what’s currently on the market at one popular Resort: Myrtle Beach Condo Sales