South Carolina is hurting, and the housing market feels the pain. Data released through the Home Mortgage Disclosure Act shows a mixed bag of hardship and promise throughout the Myrtle Beach real estate market. While it is true that our market freefall has ended, and 2009 home sales ended the year above 2008 numbers, the real newsmaker is the sheer magnitude of the decline, with sales dropping by more than 80% in some areas.
The one bright spot in the Myrtle Beach market is the area east of Kings Highway from 8th Avenue North to Withers Swash, which experienced an almost 29% increase in mortgages.
Most areas showed double-digit declines, most notably along the Myrtle Beach oceanfront between 8th Avenue North and 21st Avenue North, where the number of mortgages dropped almost 90%. The Forestbrook area was hit hard as well, with declines topping 85%. And while investor and second-home mortgages were down significantly, they still accounted for more than 40% of all mortgages last year.
Industry experts say that the mortgage delinquincy rate - the percentage of loans that are 90 or more days late - is at 4.76% and rising in Horry County. Foreclosures are likely to continue "well into" 2010, continuing the difficulty banks are experiencing and contributing to their miserly lending environment.
High unemployment is likely to continue for the foreseeable future as well. An analyst for the South Carolina Employment Security Commission said that the state would have to create 2,000 jobs a month - for the next five years - to make up for the number of jobs lost over the past two years.
Well, we can hope.
