2011 Foreclosure Trends Promise a Brighter Real Estate Future For Myrtle Beach and Surrounding Areas

As we are already beginning the month of February, the first quarter of 2011 shows significant promise for the remaining months of the year. Leading into 2011, the previous year’s numbers in comparison with current statistics are showing a great deal of promise in terms of both foreclosures as well short sales. With an apparent dip in the number of combined foreclosures and short sales relative to the total number of properties sold, the future looks bright. With a look at the previous year’s actuals and some valuable insight into the next several months, the opportunities for buying and selling are plenty.

A Snapshot of Units Closed in 2010

Total Closings         Percentage

Single Family Homes
Short Sales                 306                 7.5%
Foreclosure                 737                 18%


Condominiums
Short Sales               491                14%
Foreclosures              794                23%

A Look Ahead

Considering today’s numbers, less than 14% of the inventory of combined short sales and foreclosures is a hopeful movement in the right direction. Of the current nearly 5000 single family homes for sale in the Myrtle Beach area, only 411 are short sales and 261 are bank-owned properties. Similarly, of the 4500 condominiums on the market presently, 457 are listed as short sales, while 144 (just over 3%) are bank-owned MLS listings.

The REO manager of a major bank in the southeast reported his expectation that in 2011 foreclosures will be lower than the previous year, citing the main reason being the early defaults being down – a great indicator of the positive inclination. Another very positive sign is that he is the bank is carrying 10% less inventory at the time. Based on this and the current a market behavior, the expectation is that foreclosure will go down in this year, while short sales will continue to rise.

Despite this mixed bag of news, the general trend is a positive one. Echoed by well-known financial expert and analyst Clark Howard recommended in a recent edition of a CNN.com video, the general consensus and also by conservatives is to buy while the price are hot! Clark Howard also strongly suggests people to invest in resort markets – saying that those property owners who already hold resort real estate are in great shape.

With the solid backing of a well-acquainted and experienced real estate agent, you strengthen your ability to make informed decisions that will positively impact your real estate portfolio in the long run. And at a time when the market fluctuations are not always predictable yet seem to point in a general direction, either way, now is a great time to have the support and knowledge of your agent, guiding you through the uncertainty. Buyers and sellers should bear in mind, as we peer into 2011, the promise of good things to come appears within reach.