Grand Strand Real Estate Market Update – The Grand Strand

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One of the best measures of how our market is performing is to compare sales and home price values from one year to the next.  For this market update, we have pulled information pertinent to the first five plus months of the year (in a period from January 1 through May 15), to evaluate how we are doing.  Looking at the number of single-family homes, condominiums and land purchases – we have been able to get a snapshot of our real estate outlook in the coming months.

When good news happens, sharing it is the first thing I want to do.  However, sometimes keeping reality in check is important – and today is one of those times.  The reality of our market is that though sales are occurring and doing so at a relatively steady pace, home prices are still declining, albeit slightly.  The number of distressed sales that make up our closed contracts has gone down a bit in both single-family homes and condos but nothing incredibly significant.   Regarding land for sale, we have seen a jump in the number of sales but that is owing to the dip in prices.

Single-Family Homes
2012: 1472 homes closed
2011: 1449 closed

Units unchanged, sales were up about 1% this year
Average sales price dropped 5.5% in 2012

Condominiums
2012: 1274 closed
2011: 1370 closed

Units down 7% in 2012 from last year
Average sales price down 4% in 2012

Land Lots

Purchases of land went up 33% in 2012
Average sales price down 23% from the previous year
Half the land inventory that closed was bank owned or short sale property.

Given the amazing deals available on land, we are seeing a lot of building and new development going on.  Many new construction homes are being built since the cost of land has dipped significantly over the past year.

Distressed Sales

Single-family homes: the number of homes sold was down to 30% of all sales in 2012 versus 35% in 2011.

Condos: Of the total number of condos sold in 2012, 30% were distressed sales as opposed to 38% of sales comprising of distressed sales in 2011.
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All in all, our market is doing fairly well considering the economy and other factors.  Interest rates are still at historic lows.  There are great opportunities to buy and/or invest in land right now.  Existing homeowners can tap into some great government programs out there designed to help them extricate out of difficult financial situations.

As owed to you, I will continue bringing you the latest news and updates of the happenings in our marketplace.  If you are considering selling, buying or investing – contact us today.  Our success of course lies in the success of our clients and we look forward to serving you soon!

The Outdoor Design Challenge: Three Top Designers Compete to Make Over an Outdoor Space

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There is no question that outdoor living spaces are becoming more popular with each passing year.  They are very popular in our Myrtle Beach area since our climate is so conducive to outdoor design.

We decided to have some fun while also helping our readers get some tips on how they can make over their outdoor space.  We teamed up with three top local designers who have now seen the space and understand that we have a budget of $5000.  They've been told to create a plan to make the space awesome.  Each of these designers have come up with their own design.

These local designers are all super talented, and their designs were all so unique and different.  In the video, you'll be able to see the exact designs that each designer has laid out for this outdoor living space.



Layla Altman

First, we have Layla Altman of Posh Living. She designed a cottage backyard using light and fresh colors such as blue and green.  Her outdoor fabrics are made of 100% acrylic which helps them to resist mold and staining.  They also won't fade as fast and are easy to clean.

She included Adirondack style chairs and an area for adults  to gather. She also made room for a dining height table with chairs as well as planters that are up to 8 feet tall to give the area more shading.  In addition, she included some outdoor fabric draperies for privacy.

See her budget here >>

Here is her design:

Chiara Rizzo-Hansen

Chiara Rizzo-Hansen of Chiara Rizzo-Hansen Interior Designs came up with her own unique plan.  Taking the interior colors of the house into consideration, she chose to use lots of green and blue in her rendering.  This is the palette of nature, as the greens blend well with the plants and shrubs and the blue is a natural coastal color.

Chiara’s eclectic outdoor design includes both a dining area and sitting area for the adult space.  She recommends buying sturdy, yet inexpensive, furniture and covering the cushions with stylish outdoor fabric.  This is a way to gain a custom look without the expense of special order furniture. A bright, all-weather rug warms up the sitting area and ties in all the colors of the aqua, royal blue, leaf green and tangerine motif.  The design calls for a movable, cantilever umbrella that provides shade to the patio.

The beverage cart is a practical and attractive addition to the entertainment setting.  By adding pavers both to the entrance and off to the right side of the patio more functionality and flow are achieved.  The pavers provide additional space for the grill and expand the usable living area.  Privacy is achieved by placing a decorative screen directly behind the grill.

Designating the children’s area underneath the trees promotes a natural separation of activities.  The trees provide a canopy of shade and Chiara has alleviated the problem of protruding roots by adding rubber mulch.  Addition of an attractive bench allow adults to comfortably supervise and enjoy the children at play.

See her budget here >>

Here is her design:

Laura Bowden

Laura Bowden of Laura Bowden Designs took the homeowners' family situation into account.  This is an active family with two small kids, so she concentrated heavily on the children's play area by putting rubber mulch under the trees.  This protects kids from tripping on the roots or having a hard landing if they fall off the swing set.

She created a colorful play area with small Adirondack chairs that have matching accent colors.  She also planned to hang lanterns on the tree limbs and install a kids' garden area. Trellises against the fence will add color to the yard.  She also plans to add a 10 x 10 extension to the patio to give more space for grilling or a summer kitchen.

Additionally, she has plans for a table and six chairs on the patio.  Her inspiration for colors came from the outside brick as well as using green as a complementary color.  She also created a space for a possible future fountain.

See her budget here >>

Here is her design:

How To Vote

Now we need your votes! For a vote to count, voters will need to LIKE Greg's Real Estate Facebook page (https://www.facebook.com/pages/Greg-Sisson-Real-Estate/121799681208987) and then type in the name of the designer of their choice on the wall. The voting starts May 2nd at 12:00pm EDT and ends 12:00pm EDT on Saturday May 5th.

You also have the chance to win a fantastic rug from Rug Décor at Market Common - Myrtle Beach. Just by voting for your favorite designer, you can have a chance at winning this great rug! Simply follow the instructions on how to vote and we will be choosing a winner at random very soon.

At the very least, we hope that you got some great design ideas for your outdoor space.  If you'd like to find out more about these designers or learn how to contact them, let me know and I'll be glad to connect you.

Here is a picture of the rug:

Grand Strand First Quarter 2012 Market Report

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One of the best indicators of how our property market is performing is to gauge the previous quarter as well as the one that passed prior to that.  So as always, here are some important figures that we have seen coming out of the first quarter of 2012.  Here is an overview: inventory levels are down, the number of distressed sales in inventory is also down, sales are on the rise but we are still seeing a significant number of distressed sales in contracts still pending.

Inventory

Right now, we are reporting that inventory is down overall by about 5%.  This slight decrease is good news, indicating a positive trend toward a more balanced market. Typically we experience a jump in inventory around this time of year – as much as fifteen to twenty percent – but fewer homes on the market leads to higher prices so this is a welcome change in our marketplace. Currently there are approximately 4,200 homes listed on the market and of the active inventory about 10% or 485 of them are distressed properties (either foreclosed homes or short sales).

Sales

Looking at the end of the fourth quarter last year and the beginning of the first quarter of 2012, we are seeing that closed transactions are about equal for both single-family homes and condominiums.  The total number of houses sold in the first quarter of this year totaled 929 with 299 of them being short sales or foreclosures – almost a third of the total sales.  Similarly, of the 785 condos sold, nearly a third of them were distressed sales with 271 being short sales or foreclosures.

Pending Sales

The most interesting activity lies within the deals that went under contract.  The previous quarter resulted in 1,065 homes under contract and 776 condos pending.  At the end of the fourth quarter last year we had 1,400 homes waiting to close.  With a total of 1,841 homes or condos that went under contract during the last 90 days, the overall figure shows an increase of approximately 25% over the previous quarter’s pending contract numbers.  This is a clear indication that there are more buyers seeking to capitalize on lower prices and record-setting low interest rates.
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As we enter into the second quarter of this year, it is interesting to note that inventory and sales are relatively flat and a third of closed sales from the previous quarter were a result of distressed situations.  The increased number of pending sales, however, shows a positive trend toward more deals closing as we progress forward.

For sellers, this is a time when it is critical to have your home priced right and in optimum condition.  Homes that fit this description are the ones that are selling quickly (often in the first 60-90 days) and are seeing multiple offers in many cases.  In terms of sales, this has been our best first quarter in over 4 years and we look forward to even better months ahead!

If you have further questions about where the property market is headed or where you fit in all this – contact us today!

Chamber wants visitors to ‘think Myrtle Beach’ when buying homes, businesses

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Some tourism promoters want people to come to Myrtle Beach -- and stay here permanently.

Advertising for the “Think Myrtle Beach” program started last week, aiming to lure new buyers and visitors to the Grand Strand and jumpstart a real estate industry that was hammered during the past few years and has been slow to recover.

The Myrtle Beach Area Chamber of Commerce’s real estate initiative comes at a time when buyers can snap up real estate at much lower prices than a few years ago and interest rates are at an all-time low around 4 percent. Realtors are optimistic that the chamber’s effort might help boost sales and help the overall local economy because real estate is such a big part of it.

The Myrtle Beach Area Chamber has started an initiative to attract new home and business buyers to the area as well as new visitors. Gary Falconer, who is from New York, decided he was going to retire in Myrtle Beach and bought his Mt. Gilead home in Murrells Inlet in 2010. Falconer illustrates the buyers the chamber is trying to attract: those looking to relocate, retire, or invest. Photo by Steve Jessmore sjessmore@thesunnews.com

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“Real estate and development is a key economic pillar in our community and it’s no surprise it has struggled in recent years,” Brad Dean, chamber president and CEO, said in an email. “Our goal is to increase jobs and help improve the local business climate, so we’re keenly interested in helping boost our real estate industry.
“While our primary marketing focus continues to be on tourism, we’re hopeful that we can leverage the investment in tourism promotion to attract new buyers, in addition to new visitors,” Dean said in the email.
The chamber is interested in reaching likely buyers who are not thinking about investing in the area and persuading them to consider a long-term investment along the Grand Strand, Dean said.

The Grand Strand is full of residents who moved to the area after vacationing here for years.

“Every person who has ever bought property here first came as a vacationer,” Rod Smith, director of general brokerage for Coldwell Banker Chicora Real Estate, said in an email. “Whether as a summer excursion, golf outing, business trip or snowbird getaway, they all came first as a visitor. By touting the benefits of purchasing real estate here, they are tapping into the visitors who may purchase in the future, and the ones who plan to buy now. It might also be a tipping point for someone who has thought of it before, but just hasn’t followed through.”

Mark Kirwan, who lives primarily in Maryland, bought a beach home in Surfside Beach in December to use as a summer home, and in the future, as a retirement home.

Kirwan, who has vacationed in Myrtle Beach for the past 10 to 15 years, said the area is a good place to have a retirement home with the nice weather and because his wife, Michelle, is originally from Charleston.
“She’s never got used to the cold weather [in Maryland],” said Kirwan, who said it would be another 10 to 15 years before he retires. “We looked at the market and decided it was the right time to buy.”

Changing vacationers into homeowners helps strengthen the Grand Strand’s economy, officials said, because those new residents will spend money here.

“Capturing new visitors benefits our economy through hotel, restaurant and retail establishments,” Smith said. “Reminding former vacationers of the great times they had here and why now is a great time to buy can help our economy grow.”

The National Association of Realtors estimates that one job is created for every two existing home sales nationwide, and each home sale contributes about $60,000 to the economy, according to the NAR’s website.
“Real estate truly does make the world go around with so many different industries benefiting from each sale,” Smith said. “With our economy finally on the mend, focusing visitors’ interest on the value of real estate for long term benefits and personal use, is a very wise investment in our future.”

Brad Lofton, president and chief executive officer of the Myrtle Beach Regional Economic Development Corp., said the chamber’s initiative is so important that the EDC has developed a real estate relocation committee to work with the chamber.

“Our focus is to create a lot of high paying jobs that would attract home buyers and home builders to the area,” Lofton said. “We’re marketing the community as a great place to open a business and that there’s real estate lots to move.”

The chamber consulted with the EDC and the Coastal Carolinas Association of Realtors to fine tune the strategy, and wants other groups to participate as well, Dean said.

The program includes online and television advertising, digital promotion and direct mail marketing, he said. The marketing campaign will be funded with private contributions from local businesses, Dean said.
The chamber also created a new magazine for those who express interest in buying in the area and a new website, www.thinkmyrtlebeach.com. The website gives information about relocating or retiring in Myrtle Beach, as well as investing in a second home and starting a business. It also touts the area’s strengths, including the mild climate, low cost of living and number of golf courses.

“We have always tried to capitalize on the 66 percent investor market---many of whom come from outside the area, and are brought here through the efforts of the chamber,” Tom Maeser, a real estate analyst for the Coastal Carolinas Association of Realtors, said in an email. “It definitely has an impact on real estate sales in our area---plus it is through the chamber’s efforts that many retirees come here to retire, and they are permanent residents.”

Golf, the warm climate, and nice people are what attracted Gary Falconer to the Myrtle Beach area.
Falconer, a retired deputy from New York City’s sanitation department, had been coming to the area about 10 years to play golf.

When he told his wife, Priscilla, 10 years ago that he was going to retire in Myrtle Beach, she said he was crazy, Falconer said.

The couple bought their Mount Gilead home in Murrells Inlet in 2010.
“I love it here,” said Falconer, who has friends that moved to the area prior to him. “There’s so much to do down here.”

Radha Herring, the broker-in-charge of Watermark Real Estate Group, said the chamber’s “Think Myrtle Beach” program is a great opportunity to attract not only potential buyers, but their family and friends who will follow them to the area if they buy.

“We have 14 million people that visit the Myrtle Beach area each year,” said Herring, who sold Falconer and Kirwan their homes. “It’s a perfect time to take that audience that already visit Myrtle Beach and have them think about real estate here.”

Contact JANELLE FROST at 443-2404.

Building Houses Into Today’s Real Estate Environment

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There has been a lot of trepidation in the real estate market since it crashed five years ago but all is not lost.  We have waited and watched and slowly but surely things are getting better.  In fact, this year is got off to a very strong start and I project even stronger months ahead.

At a time when overall costs are down despite economic difficulties in many regions, building a home is an excellent endeavor.  To find out what is happening in the builders’ market, I met with Harry Dill, co-owner of Sterling Homes and expert in the homebuilding industry for over 35 years.  As a member of a number of associations, boards and communities, Harry has seen a lot of ups and downs in his career but he has good things to say about the market right now.  Here are some of the questions I asked him:

How has the year started off in the new homes industry?

For the first time in five years, I can finally say I am confident about the market.  We are seeing evidence of a recovery ahead.  More clients are interested in building new homes and in fact we are putting more new homes on the market than we have in a while now.  After what we went though a few years ago, I am finally able to say that I’m cautiously optimistic about the state of our market but we do seem to be heading in a positive direction.

What do you look for as you forecast the coming months this year in terms of the new built homes?

This is an industry where I’m fortunate enough to be in touch with a lot of people in the business; suppliers, other builders, vendors, etc.  One of the things we look at is what others in the same industry are doing.  Another thing we look at is how consumers are feeling.  If I see that they are spending more of their discretionary income then that is an indication of confidence – something that drives the economy and housing industry.  When you see people out there spending, you know the market is heading in a good place.

What would you tell someone that is on the fence or someone that is looking to upgrade or build their dream home?

Now is a great time to build your own home.  So many factors contribute to this, including the fact that labor prices are down, the overall cost of the market is down, prices are staying low –including the price of materials.  With the exception of a few items that are dependent on the price of fuel, almost all costs are lower than what we’re used to seeing. When you combine that with the affordable mortgage market right now, it’s a great situation and the perfect time to build.

Do you have any advice for new or prospective owners of newly built homes?

Even though we have seen a lot of positive activity in the last several months, a full market recovery will take some time.  I think it’s important to remember that even though there was a point in time that everyone’s home values went up so high – they came back down.  So climbing back up again will be a slow process.  It is the best time that is has been in a while to get a good deal right now so if you are interested in moving, now is a great time to build your dream home.
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There you have it – words of wisdom from Myrtle Beach’s own Harry Dill, one of the industry’s most experienced and decorated homebuilders; a gentlemen I’m honored to have had the opportunity to speak with.

If you’d like to explore your options or see what’s out there in terms of a newly built home or otherwise here in the Grand Strand, contact me today!

Seeing The Market Through Rose Colored Glasses?

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There has been a lot of activity in the marketplace lately and it has been nothing short of dramatic.  With mortgage company scandals, government programs, countless foreclosures and distressed properties going up then down and projected to go up again – who knows where we stand today?  But the truth is that after years of experience in the business, seasoned real estate professionals know when the market is truly ready for a turn-around versus when things are just stirring.

Things Seem To Be Improving But It’s Too Soon To Tell

Many people are under the false impression that the real estate market has taken a turn for the better after months of struggle.  Though there are definitely some positive signs – and with increased government incentive programs such as HARP loans or the newly introduced FHA fee reduction plan, things are getting better.

Still the market changing for the better does not indicate that we are in the midst of a full-blown recovery.  There is more to come and more to be weathered ahead since much of what we are experiencing these days is as a result of a seasonal push where sellers are seeing more success.  Quality properties – especially those that are secondary residences, resort properties or condos are receiving multiple offers.  In fact, buyers today are more motivated than ever before thanks to the phenomenally low interest rates still available.  This makes it a fantastic time to sell but it does not necessarily translate to the entire real estate industry’s recovery.

All Hope Is Not Lost – Sellers Gaining More Leverage

After months of struggle, in many markets sellers are finally gaining more leverage and enjoying a stronger position given buyers’ motivation levels.  Add to that the reduced inventory coupled with increased demand and it is seemingly a recipe for success.

Regardless of what it may seem however, there is still much inventory that lurks behind the shadows.  In fact, the industry terms it “shadow inventory” and though things will remain positive through the warmer months, when we return to cooler months we expect once again to see increased inventory on the market.  Recent settlements made between state and federal regulators over the 2010/2011 robo-signing scandal will mean that banks will likely seek to liquidate their assets.  We project a plethora of bank-owned properties to hit the market come fall season, which will slightly de-stabilize the market again.
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Even though what we have been seeing are positive trends that seem to indicate upward motion in our marketplace, keep your eyes open for more to come.  In the meantime, if you are a seller it is strongly suggested to list your home now while there is heightened demand. For so many months we’ve been hearing that now is the time to buy but right now might be the perfect time to sell your properties.  Especially if you are looking at unloading your secondary, vacation home, resort residence or other such property. Keep in mind: diminished inventory = more demand.

At the end of the day there is no question that we are sensing there are some good things happening in the market and like many challenges, in time we will overcome this one too.

Moving Out? In Today’s Real Estate Market, Which is Better, Renting or Selling?

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Contrary to what many experts, news media or analysts may have you believe, market conditions are not as bad as they are portrayed.  In some areas inventory is down, prices are up and the general consensus is a positive one, moving up in a positive outlook for the future.  But the question does arise when one is moving from a home – whether selling it now or renting it to hold out for a better selling price makes more sense.  Here we’ve put together some considerations that will help you discern which is the better choice for you.

Real Estate Is Always a Gamble, Now’s Not Any Different

There is no real way to tell exactly how the market will behave at any given time in the future but currently all trends reasonably point to both options being equally as viable.  If you opt to keep your home and rent it out, say for the next couple years or so, then there is a chance that prices will hit rock bottom and then begin to climb up again during that period.  However, there is also a chance that prices continue to plunge – in which case you would have been better off selling while a bit ahead of the game.

The main thing to keep in mind here is that even though things go up and down in the short term, real estate is a great long term investment and it’s fair to say that ultimately there will be a gain on your property value.

Buyers’ Market Today, Who Knows What Happens Tomorrow

So many indications of it being a strong buyers’ market these days make it seem that the opportunities on the buying end of things are endless.  However anything can change and it can change fairly quickly.  Take our current interest rates.  Though buyers have been used to seeing such historically low interest rates for some time now, if the government decides to raise the rates it will instantaneously change things.  Since buyer’s ability to purchase will be affected in a major way, prices will concurrently come down.

Heavy Foreclosure Inventory Appears to Dominate The Coming Path

Nationwide there are literally millions of foreclosure properties out there that need to go through the system.  As foreclosure and short sales flood the market, prices will plummet as a result of these distress sales.  In some markets this trend has crept into the upper-end niche of the real estate industry.

Why Renting Can Be Risky

If a homeowner rents out their property and while it is on rent the condition of the property suffers some damage – then they have negatively impacted the value of the home during a time when they had hoped for an increase in value.  This is the single biggest gamble when it comes to choosing to rent your home rather than selling it.

Also, there is no way to tell what the condition of the selling market may be when it comes time for you to decide to sell.

Consult With Your Realtor To Assess Your Options

Realtors deal with myriad situations on a regular basis and they also intimately know the statistics of your neighborhood and surrounding areas.  By consulting with a trusted and reputable Realtor in your neighborhood, you can gain ample perspective on exactly how your property might fare in today’s market conditions.  An informed decision would be made, given the factors at hand so you can be assured that your choice is the best as per your own situation.