Condo Sales Drop 61%

While single-family home sales dropped 28 percent to 443 from 616 compared to last July, condominium sales fell 61 percent to 338 from 871 during the same period, according to the Multiple Listing Service. "This is definitely a reflection of increased inventory," said Tom Maeser, president of Fortune Academy of Real Estate in Myrtle Beach. About 5,000 homes and about 10,500 condos are on the market. That's almost double the number of condos last year and a 50 percent increase for single-family homes.

As late as July, however, prices were still on the rise. The median price of single-family homes increased 18 percent to $223,500 from $189,900 last year. The median price of condos was up 15 percent to $173,500 from $150,550. The long-term effect of falling sales and rising inventory will be price decreases. It is inevitable.

"On average, they say, vacation condominiums turn over every seven or eight years", said Phil Cox, owner of Resort Vacation Services. "This appears to bear out at The Myrtle Beach Resort" (where Cox has his sales offices). "Regardless of the times, there are always those that need to sell; as a result of death, divorce, difficult financial times, etc. These owners will have to gradually reduce the sales price of their properties to get them sold. Others will likely follow."

"We have already seen that starting", Cox continued. "The summer season ending in Myrtle Beach also brings an end to the rental checks that have supported the mortgages for the past few months. I expect the price to fall and the buyers to emerge come spring, or possibly this winter. Suggestion for potential buyers: make offers. Suggestion for potential sellers: don’t sell now unless you positively have to."

To review the inventory of vacation/investment condominiums for sale at the popular Myrtle Beach Resort, go to Myrtle Beach Condo Sales.