Are you considering buying a home in Myrtle Beach, SC? The housing market in this coastal city has experienced significant changes in recent times. Myrtle Beach has a diverse real estate market, with a range of properties available, including beachfront condos, townhouses, and single-family homes. Whether you're a potential buyer, seller, or investor, understanding the market dynamics can help you make informed decisions. Let's explore the numbers and factors shaping the real estate landscape in Myrtle Beach.
Current Myrtle Beach Housing Market Trends
According to the insights provided by realtor.com®, Myrtle Beach, SC emerges as a buyer's market in October 2023, signifying a scenario where the supply of homes surpasses the demand. This could provide prospective buyers with a range of options and potentially some leverage in negotiations. Understanding the market dynamics is crucial for making informed decisions in this coastal haven.
Median Listing Home Price: Unveiling the Numbers
As of October 2023, the median listing home price in Myrtle Beach, SC stands at $310K, exhibiting a noteworthy trend of -8.6% year-over-year. This dip in prices unveils a dynamic market where affordability may be a key factor influencing buyer decisions. The median listing home price per square foot echoes this at $243, painting a picture of the local real estate landscape.
Sale-to-List Price Ratio: A Crucial Indicator
The sale-to-list price ratio is a crucial metric, indicating the negotiation dynamics in the market. In October 2023, homes in Myrtle Beach, SC sold for 97.3% of the asking price on average. This reveals a market where buyers might find some room for negotiation, positioning them in a balanced yet slightly advantageous position.
Median Days on Market: Decoding the Pace
One essential factor to consider is the median days on the market, reflecting how swiftly properties are being snatched up. Currently, homes in Myrtle Beach, SC spend an average of 56 days on the market. Analyzing the trend over the past year, this figure has slightly decreased, underlining a market where properties are moving at a reasonable pace.
Outlook for the Myrtle Beach Housing Market
- Prices: Prices are expected to remain stable or decline slightly in the coming months.
- Market Outlook: The market is expected to remain a buyer's market for the foreseeable future.
- Housing Inventory: The number of homes for sale is expected to continue to increase.
Myrtle Beach Housing Market Forecast 2023-2024
According to Zillow, the average Myrtle Beach home value stands at $301,361, showing a modest 0.3% increase over the past year, with homes typically going pending in around 27 days. This data is accurate through October 31, 2023.
- For Sale Inventory (October 31, 2023): 2087
- New Listings (October 31, 2023): 647
- Median Sale to List Ratio (September 30, 2023): 0.975
- Median Sale Price (September 30, 2023): $255,000
- Median List Price (October 31, 2023): $297,433
- Percent of Sales Over List Price (September 30, 2023): 6.4%
- Percent of Sales Under List Price (September 30, 2023): 79.3%
Myrtle Beach MSA Housing Market Forecast for 2023 and 2024
In the Myrtle Beach Metropolitan Statistical Area (MSA), the forecast for November 30, 2023, indicates a slight decrease of -0.1%, followed by a more significant drop of -0.6% by January 31, 2024, and a subsequent rebound with a 0.5% increase by October 31, 2024.
MSA stands for Metropolitan Statistical Area, and in the context of Myrtle Beach, it encompasses the broader regional housing market, including the city and its surrounding counties. The key counties within this MSA contribute to the overall size and dynamics of the housing market.
The Myrtle Beach Metropolitan Statistical Area (MSA) includes counties in South Carolina. As of the base date October 31, 2023, the housing market forecast suggests a nuanced scenario, with a slight dip, followed by a more substantial decline, and then a subsequent recovery. The counties within this MSA collectively shape the housing landscape, influencing factors such as property values, inventory, and market trends.
Is It a Buyer's or Seller's Housing Market?
The Myrtle Beach housing market, as of the latest data, continues to lean towards being a buyer's market, indicated by a higher percentage of sales under list price (79.3%) compared to those over list price (6.4%).
Are Home Prices Dropping?
While the average home value has seen a modest increase, the forecast for the Myrtle Beach MSA suggests a potential decline in the coming months, as indicated by the negative percentages in the forecast for November 2023 and January 2024.
Will the Myrtle Beach Housing Market Crash?
The forecasted percentages, while showing a temporary decline, do not necessarily indicate a housing market crash. Real estate markets are dynamic, and various factors contribute to fluctuations. Monitoring the market closely is essential to understanding the full scope of any potential changes.
How is Real Estate Investing in Myrtle Beach?
Investing in real estate can be a smart decision, especially when you consider the long-term potential for appreciation and the potential for passive income through rental properties. Here are some top reasons to consider investing in the Myrtle Beach real estate market:
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Strong Economy: Myrtle Beach is a popular tourist destination, which means there is a strong economy supported by the tourism industry. This translates into a steady stream of visitors and a demand for rental properties.
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Rental Population: Myrtle Beach has a significant population of renters, with nearly 50% of the population renting rather than owning their homes. This creates a strong demand for rental properties and potential for steady rental income.
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Tax Environment: South Carolina is known for its favorable tax environment, with no estate tax, low property taxes, and no state inheritance tax. This can make it an attractive place to invest in real estate and potentially generate higher returns.
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Affordable Market: Compared to other popular vacation destinations, the Myrtle Beach real estate market is relatively affordable, which means investors can potentially acquire properties at lower prices and generate higher returns on their investment.
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Potential for Appreciation: Myrtle Beach has been experiencing steady growth in the real estate market over the past several years, with home values increasing steadily since 2015. This trend is likely to continue as the area continues to attract new residents and tourists.
However, there are also some potential drawbacks to investing in the Myrtle Beach real estate market:
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Seasonal Market: While Myrtle Beach is a popular tourist destination, the real estate market can be seasonal. Demand for rental properties and home sales may slow down during the off-season, which could impact cash flow for investors.
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Property Management: If you plan to invest in rental properties, you will need to manage them or hire a property manager to do so. This can be time-consuming and costly, and there is always a risk of tenant turnover and other issues that could impact cash flow.
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Competition: While the Myrtle Beach real estate market may be affordable compared to other vacation destinations, it is still a competitive market. Investors may need to act quickly to acquire properties and may face stiff competition from other buyers and investors.
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Hurricane Risk: As a coastal city, Myrtle Beach is at risk for hurricanes and other natural disasters. This risk could impact property values and create additional costs for investors in terms of insurance and maintenance.
In conclusion, the Myrtle Beach real estate market offers a number of potential benefits for investors, including a strong economy, rental population, favorable tax environment, affordability, and potential for appreciation. However, investors should also be aware of the potential drawbacks, including a seasonal market, property management challenges, competition, and hurricane risk. By carefully weighing these factors, investors can make an informed decision about whether the Myrtle Beach real estate market is right for them.
Sources:
- Zillow
- Redfin
- Realtor.com