An Eye-Opening Recap of Real Estate Trends; Reviewing the Good (and Not-So-Good) News of the 2010 Market

While the buzzwords of the year have been “short sale” and “low interest rates” other, more promising trends have also been on the rise. As buyers and sellers wait with bated breath for the market to change significantly, the small miracles that we are witnessing by and large are enough to give us plenty of hope for a long, strong and solid real estate future for 2011 and onwards. Here’s a look at how the real estate market in the Myrtle Beach area compared from 2009 to 2010, giving us some valuable insight into what to expect for 2011.

Home Sales
Single-family Home Sales

Single-family Homes
2010 Total Transactions 3988
2009 Total Transactions 3577
2010 Average Sales Price $214,845
2009 Average Sales Price $223,055

So, here’s what’s interesting – even though the average sale price dropped 4% from 2009 to 2010 the number of transactions for single-family homes went up.

Condominium Sales

Condos
2010 Total Transactions 3464
2009 Total Transactions 2900
2010 Average Sales Price $148,221
2009 Average Sales Price $171,403

We see a very nice increase of over 500 units going from one year to the next. However, sales prices dropped an average of 13.5% from 2009 to 2010.

Short Sales
Single-family Homes

Single-family Home Short Sales
2010 Total Transactions 306
2009 Total Transactions 179

Taking a closer look at short sales made on single-family homes, there was a staggering increase of 71% from 2009 to 2010. Clearly, the short sales phenomenon is growing.

Condominiums

Condo Short Sales
2010 Total Transactions 491
2009 Total Transactions 234

We have seen a dramatic increase in the occurrence of short sales in condos – a very significant 109% increase from’09 to ’10.

Foreclosures
Single-family Homes

Single-family Home Foreclosures
2010 Total Transactions 737
2009 Total Transactions 539

Just looking at the comparison provides a clear view of where banks and owners of single-family homes are headed in the near and semi-distant future.

Condominiums

Condo Foreclosures
2010 Total Transactions 794
2009 Total Transactions 457

Owners of condominiums have faced for foreclosures in an unprecedented increase, moving up 74% from the previous year. Interestingly, though more units were sold across the board and prices dropping – the price drop on condos has been significant.

Bottom Line

Looking at 2009 and 2010, with total transactions up by nearly 1000 units and prices still dropping considerably, the trend is of significantly smaller amounts of depreciation on single-family homes. We have noticed a sizable price drop, with the average sale price shrinking dramatically from $175k to $173k – making us closer to the bottom on single-family home.

Condos still have some breathing room in terms of average sale prices.

Short sales continue to be on the rise, as more and more banks realize that the option of a foreclosure process is not as financially viable as going the short sale route. Like many homeowners who decide that the only feasible option at the time is to explore getting rid of their property (and effectively getting rid of that negative cash flow), you may be a candidate for a short sale. If you visit our offices for a consultation, we can figure out whether a short sale is right for you.

There are three key things to remember:
First, as a seller of property, if you can stand to wait it out through the current real estate market, anywhere from four to six years, then don’t do a thing. Wait for the market to stabilize and then act on your desire to sell.

Second, as an owner of a condominium, if waiting that same four to six years is not an option, then selling now is what you will need to do.

Finally, if buying properties is your current interest then do so without attempting to time the market. With dramatically lower prices as compared to five, six years ago – and with interest rates slowly rising now is a good time to buy.

By going over the relevant topics that make or break your real estate outlook, it is our hope to help you make informed decisions that have lasting and positive impact on your future real estate portfolio. The importance of gaining insight of the previous year over year transaction comparisons is that most often it is a solid indication of the coming year’s trends. For more information on your specific area, please feel free to contact me and I’ll be glad to assist!