The My rtle Beach real estate market is turning heads in 2023. Read on to discover what’s causing the buzz, whether it’s sustainable, and how to take advantage of it.
Real estate has always been about profits. And what better way to realize profits than to invest in a market that is always growing? Off the coast of South Carolina lies a hidden gem that has been making waves in the real estate world – Myrtle Beach.
Within its stunning beaches, bustling city life, and year-round warm weather lies an abundance of opportunities for homebuyers and real estate investors. This article will provide an overview of Myrtle Beach’s real estate market and outlook for 2023.
Myrtle Beach Real Estate Market Trends
The Myrtle Beach housing market shows growth and stability, evident in its home prices and inventory levels.
Myrtle Beach Home Prices
Since December 2022, Myrtle Beach has experienced an overall uptick in median home prices. As of October 2023, the median sale price had risen to $300,000, up from December 2022’s $240,000. But this was a decrease from July 2023’s peak of $350,000 and a 4% drop year-over-year.
Myrtle Beach Median Home Prices by Neighborhood
In September 2023, the most expensive neighborhoods were The Dunes and Grande Dunes, with median listing prices of $1.7 and $1.2 million, respectively. Seagate Village followed with a median listing price of $263,000. South Myrtle Beach offers more affordable homes, with its median listing price at $159,900.
Will Home Prices in Myrtle Beach Continue to Rise in 2023?
With the current trajectory of Myrtle Beach home prices, a drop in home prices in the remaining part of the year seems likely. But it’s hard to tell, given the city’s appeal to homebuyers and investors. Either way, positive growth is expected in the long run — a 1.50% rise is expected in one year and 3.63% in five years.
Most Popular Types of Homes for Sale in Myrtle Beach
Single-family homes are the most popular in the Myrtle Beach, SC, housing market, thanks to their spacious living conditions. Most single-family homes for sale in Myrtle Beach, SC, are located in suburban neighborhoods. Following closely behind are condominiums. These cater to individuals and small families seeking a more affordable living space.
Sales Volume
In September 2023, 195 Myrtle Beach, South Carolina, homes were sold, marking a substantial downturn of over 30% year-over-year. This indicates a sharp decrease in demand. September’s median of 71 days on the market underlines the decline — the national median is 33 days.
While the drop in demand might initially raise eyebrows, it’s important to remember that fluctuations in sales volume are a normal part of real estate market dynamics and do not necessarily indicate a long-term trend.
Inventory Levels
In September 2023, the total number of homes for sale in Myrtle Beach was 4,508. This was a 15.7% increase compared to the same period in 2022 when the inventory level was recorded at 3,897.
New homes have been rapidly entering the market, and sales haven’t been able to keep up. This has resulted in a strong buyer’s market with plenty of options for homebuyers and competitive pricing.
Factors Driving the Myrtle Beach Real Estate Market
Several factors are fueling the growth of the Myrtle Beach housing market. These are:
Location and Lifestyle
Myrtle Beach’s strategic location on the East Coast, with its beautiful beaches, golf courses, and other recreational amenities, makes it a highly sought-after destination. This has led to an influx of residents, tourists, and second-home buyers, driving up property demand.
Affordability
Everyone loves a good bargain, and Myrtle Beach offers just that. Compared to other East Coast cities, Myrtle Beach has affordable housing options. The Myrtle Beach cost of living in 2022 was 8% lower than the national average, adding to the city’s appeal for homebuyers and investors.
Economic Growth
Myrtle Beach’s job market is on fire, pulling homebuyers and real estate investors and driving up the need for homes. Its employment growth rate was 1.6% over the last one year. Furthermore, predictions indicate a 38.8% growth in the next 10 years, surpassing the national average of 33.5%.
The tourism, services, healthcare, and construction sectors are the major players pumping this growth.
Positive Population Growth
Myrtle Beach’s population grew from 27,109 in 2010 to 35,697 in 2020. 2022’s estimate from the US Census Bureau puts the population at 38,417. With its high desirability and the recent trends, it’s only right to expect the population to continue growing, driving real estate demand further.
Mortgage Rates
Mortgage rates are still high, averaging around 7.5% as of November 2023. This is taking a toll on many growing property markets. Myrtle Beach is no exception. Buyers are becoming disincentivized to take out loans, reducing demand and sales. Rentals are also increasingly becoming an attractive option as a result.
However, experts believe that the upward trend in mortgage rates will soon peak and start declining.
Myrtle Beach’s Real Estate Investment Potential: Is Myrtle Beach a Good Place to Invest in Real Estate?
Myrtle Beach’s real estate market has been nothing short of impressive in 2023. While there have been some signs of a slowdown in the second half of the year, it remains a strong and stable market overall. The outlook for 2023 and beyond looks promising.
With more inventory entering the market and a decrease in demand, buyers can expect more options and potentially lower prices in the foreseeable future.
But in the long run, things could take a turn as mortgage rates plateau or plummet, the economy grows, and the population expands. Demand could rise again, shifting the balance of power from buyers to sellers. As always, it’s essential to stay informed on market trends.
Top Risks and Rewards of Investing in Myrtle Beach, SC, Real Estate
Investing in Myrtle Beach, SC, real estate, as much as other investments, comes with its share of risks and rewards. Growing real estate markets are especially more prone.
Here are some of the top risks and rewards of investing in Myrtle Beach real estate:
Rewards
- Capital Appreciation: With the city’s growing demand for housing driven by factors of job growth and population influx, there’s potential for property values to increase over time.
- Affordability: With comparably lower property prices and a cost of living below the national average, Myrtle Beach presents a unique opportunity for buyers to buy into a market on the rise.
- Tax Benefits: South Carolina has the sixth-lowest property tax rate in the US at 0.52%, which is less than half the national average. Given that the median home value in Myrtle Beach is 8,000, homeowners pay median real estate taxes of around 1,500 annually. This translates to a lower cost of home ownership and higher returns for investors.
- High Rental Yield: Given Myrtle Beach’s status as a popular vacation spot, rental properties, particularly those near the beach, can generate significant income.
Risks
- Market Volatility: As with any real estate market, fluctuations in property value are inevitable. Various factors, such as economic downturns, changes in mortgage rates, or shifts in market demand, can cause this. The fluctuations can significantly impact an investor’s bottom line.
- Natural Disasters: In Myrtle Beach, the threat of storms and flooding is ever-present. This increases the risk of property damage.
- High Insurance Costs: Natural disasters mean higher insurance costs for property owners, cutting profits and increasing the cost of ownership.
- Deprecation: Even though the outlook is positive, unforeseen events like economic downturns could lead to a decline in property values.
Buying and Selling Real Estate in Myrtle Beach
Whether you’re looking for your dream home or seeking maximum return on investment on a property, it’s essential to understand the local market and the buying/selling process. Your real estate will be the major determinant of the outcome of any transaction.
How to Find a Qualified Real Estate Agent in Myrtle Beach
With so many real estate agents to choose from, finding a qualified and reliable one can be a challenge. But with diligence and knowledge of what to look for, it’s possible to find the perfect fit.
Start by getting recommendations from friends who live or have transacted real estate in Myrtle Beach recently. You can also search online by visiting local brokers’ websites. You’ll be looking for agents who specialize in the type of property you’re interested in. Narrow down by considering their experience, track record, and reviews.
Schedule interviews with several agents to gauge their proficiency and professionalism. You’ll want to ensure that they have a good understanding of the local market and are responsive to your needs.
Steps Involved in Buying or Selling a Home in Myrtle Beach
The steps for buying or selling real estate in Myrtle Beach are the same as those in other real estate markets. For buyers, it starts with budgeting to ensure a focused search and time-saving. Preapproval for the mortgage amount is also crucial, though not necessarily due to the low competition.
A thorough home hunt with the help of an agent should ensue. The equivalent of this for sellers is staging, listing, and marketing their property. Offers will then be made, and upon acceptance, an inspection, appraisal, and negotiation can follow. Closing finalizes the transaction.
Closing Costs Associated With Buying Real Estate in Myrtle Beach
While finalizing the sale, buyers incur several expenses on top of the purchase price. Title search and insurance, appraisal fees, and real estate attorney fees, among others, are some of the common closing costs. These costs usually amount to between 1.66% and 4.94% of the home’s value.
Invest in the Myrtle Beach Real Estate Market Today
The Myrtle Beach real estate market has plenty of opportunities for buyers and sellers. With careful consideration of reliable market insights and by working with an experienced real estate agent, you’ll be on your way to making a sound investment decision.
