We all use to want Myrtle Beach Oceanfront Condos?

A few years ago, Myrtle Beach Oceanfront condos were definatly the hottest thing around. Price climbed like crazy!!

now at the same time we did have loose lending requirements and a white hot real estate market, but still what happened?

well it was about 4 maybe 5 years ago you could purchase a Myrtle Beach oceanfront condo and get it financed 95% LTV without any problem at all. Reservations for Myrtle Beach Condos were cheap, you could get in for a few thousand dollars and lock in your contract with 10% or less down.

Looking back those days were pretty crazy.

Now days it is almost the exact opposite. So what happened to the condo market?

The biggest thing is condos in Myrtle Beach were over valued. To buy a condo and have it break even with vacation rentals you would have to put 50% or more down!. Plus financing went to only 80% LTV, then most banks started considering them all Condo-tels so financing went to 65% LTV. Then it actually kind of went away for a little while it seemed. Most of these loans could not be sold on the secondary market.

On-top of it on-site vacation management companies charged anywhere between 40 and 60% of the gross rental income.

The foreclosure rate then skyrocketed because most people bought thinking these Myrtle Beach rentals would carry most of the mortgage or under-estimating the expenses. Most people also bought thinking they could flip for a quick profit.

Now Myrtle Beach Condo foreclosures are dominating the ocean front market. If you are a seller not only are you competing with other condos and a large inventory, you are competing with the banks who are constantly driving the price down trying to liquidate the inventory they are taking back.

I don't think we will see the price stabalize or go back up until foreclosures slow down and we see the banks clear off a lot of their inventory. Myrtle Beach rentals will always be popular but there is also a threshold for rental rates. However with price decreasing we are seeing the price coming back more inline with the rental rates.