Taking a Closer Look at the Condominium Real Estate Market in the Grand Strand

This week, I thought it would be useful to shine the light on how our condominiums are doing.  Since we are among an ocean front region, condos are a hit for our area and as we roll into the summer months leaving spring behind, it’s worth looking at how the market is doing.

CONDOMINIUMS ARE HOT PROPERTIES IN RESORT AREAS

The news in condo sales is that as May came to a close, we reported 48 condos sold – with a wide range of selling prices anywhere from the low end at $34,900 to the upper limit of $485,000.  Half of the transactions we saw were cash transactions while the remaining condos were financed by lenders.  It is not uncommon to see cash transactions take place for such properties in resort regions.

Being in a resort area, one of the most advantageous ways to approach the real estate market, when tapping into the resort market, is to purchase a property with the sole purpose to gain rental income that will carry that property forward for a long period.  Sometimes, depending on the peak season for the respective market area, property owners can expect to yield as many as 9 months of mortgage payments worth of income. The rental income of key weeks during the summer typically exceeds the amount needed to carry through that property for almost the entire period before the cycle repeats itself.

LOOKING AHEAD, WHAT WE CAN EXPECT

Everyone is experiencing some trepidation over the real estate market’s seeming performance the past several years.  The fact remains, however, that the market is performing well enough nonetheless.  When you look at the Hoffman Group’s volume of nearly $9.5 million – the proof is in the pudding.  The average per unit amount is at $197,000 and it clearly indicates a market that IS going places. I can’t attest to the fact of how fast it is moving but it IS moving. 

Consider this:  Though media experts and news reports would have you believe that it is not the best time to engage in real estate transactions, time and time again we are showing that now is the BEST time to buy a home, move up or upgrade. (There is sure to be more information coming on this hot topic in future blog posts).  The chain reaction does get set in motion when one property sells after all.  One family moves out to get into their new, upgraded home and therefore puts their current home on the market.  Another family, given that it IS a buyer’s market these days will most likely sell and then the cycle repeats itself.  While the speed and efficiency of this is not as good as it was a few years back, it is indeed still happening.

The bottom line: Real estate is moving.  Properties are selling.  Buyers are buying.  And though prices are low this will change.  The first indication of positive change is increasing confidence in the market – which we are seeing.  It looks like this trend should continue on into the summer.