July 19, 2012 North Myrtle Beach, SC – The Coastal Carolina Association of Realtors (CCAR) June report showed another month of real estate sales activity with some concerning trends.
Single Family Residential (SFR) inventory declined in June to 4,724, a 6.3% decline from prior year levels, while at the same time the median sales price fell to $164,000 – a seven year low. Economic 101 would have declining inventories driving up prices, but there is another factor at work.
Cynthia Stanley, The Beach Company, a 24 year real estate veteran of explained “I have been watching these numbers for a long time. Distressed property prices dropping faster than inventory decline is what is driving the sales price.”
Since the start of 2012, non-distressed properties have seen an increase in medium sales price by about 5%, distressed properties have declined by 8%. As long as distressed properties are significant in the inventory and declining in price, the combined medium sales price is likely to decline. With CCAR forecasting that 2012 median sales price will be down 3 – 5%, real estate observes can expect that the distressed SLR inventory will not be significantly purged this year.
Stanley pointed to the North Myrtle Beach ocean front market as good news. “On ocean front there are 411 properties for sale, but only 5 are bank-owned and 9 with lender approved short sales. This is quite a bit less than just a few months ago!"
With less than 4% of the ocean front market distressed, prices should start stabilizing.
What do these statistics meant to the buyer or purchaser? Stanley said, “If you are thinking of buying or selling, there is no reason to hesitate. It really depends upon the individual property and that is were prospective buyers or sellers need to consult a real estate professional. A realtor can put any individual property in the context of what is happening in the local market and help individuals make wise decisions.”
If you are considering being in the market, contact Stanley at (843) 222-2687 or other Realtors knowledgeable of the local market.
Horry and Georgetown combined medium residential sales price