Condo Sales Decline on The Strand

Sales for homes and condominiums fell again in August on the Grand Strand, continuing a slower market compared to last year's record sales. Home sales dropped 22 percent and condo sales dropped 52 percent compared to August 2005 - a trend that has stabilized prices somewhat.

"Believe it or not, prices have not gone down. It's just that inventories have gone crazy," said Bill Barrett, a national real estate speaker and former college professor who spoke during the S.C. Association of Realtors annual convention in Myrtle Beach on Tuesday.
Barrett said a buyer's market is when there is more than six months worth of inventory. Nationally, there's more than seven and half months worth of inventory, he said.
That's 3.7 million homes for sale in the nation - an all-time high, he said.

On the Strand, there's about a year's worth of inventory on the market, said Tom Maeser, market analyst and president of the Fortune Academy of Real Estate. Maeser expects inventory to be absorbed once the market gets more permanent home and second home purchasers. That's because the market has lost the rental income investor as its main buyer, Maeser said.

Barrett told agents it's better to call a buyer's market a "corrected market" - because the market is experiencing a correction.

"2005 was the greatest year in the history of Grand Strand real estate, but it was an enigma. Most companies are doing better than they did in 2004," Maeser said.
The price appreciation of 2005 couldn't be maintained, he said.

Prices are up year-over-year in August except for the average price of homes, which fell to $248,377 from $251,553. The median price for homes is up 13 percent to $210,000 from $185,950. The median price of condos increased to $175,500 from $154,900.
The number of days that property sits on the market is also increasing. Homes stayed on the market for 148 days in August, compared to 130 days last year. Days on market for condos increased to 217 days from 80.

Phil Cox, Broker-in-Charge, of Myrtle Beach Resort Vacations, offered these suggestions to interested condo buyers as this sluggish period continues, “don’t be afraid to make an offer; any offer. You never know what is motivating the seller.” As to sellers, he advises, “counter every offer…regardless of how low it might be. It is important to continue the negotiations.“

Visit Myrtle Beach Real Estate Listings for condos currently available for sale at the popular Myrtle Beach Resort.