The Grand Strand real estate market continued to improve in February with double-digit jumps in single-family home and condominium sales and with median single-family home prices increasing for the first time in about two years. Single-family home sales were up about 17 percent in February from the same month last year, and condo sales were up about 54 percent, according to data collected from the Multiple Listing Service.
The median price - the price at which half sold for more and half sold for less - for single-family homes was up about 8 percent in February compared with the same month last year. Prices rose from $173,500 in 2009 to $187,500 in 2010. The median condo price was down about 15 percent, dropping from $127,700 in 2009 to $109,000 in 2010.
The single-family home market isn't as volatile as the condo market, which has been harder hit by short sales and foreclosures.
The number of condos on the market dropped by more than 1,000 from 2009, according to the MLS, and that loss of supply has created a little buying frenzy because there are fewer condos available and buyers don't want to miss the chance to get one, which has resulted in multiple bids on some properties. Business throughout the Grand Strand from investors, first time home buyers and second home buyers has picked up.
"I think the numbers continue to validate the fact that our market continues to improve on a monthly basis, or a daily basis even,"
Until this point, most sales have been on properties under $250,000 but some higher-priced properties between $500,000 and $700,000 have started to sell as well, he said. The median price increase in single-family homes may be a result of those higher priced properties starting to sell and shows a strengthening and firming of that market.
Part of what is driving sales in the lower price ranges, especially in the condo market, is the number of cash buyers.
Most of the sales in February, 51 percent, were paid for in cash, with 41 percent traditionally financed and the remaining 8 percent financed through the Federal Housing Administration, Veterans Affairs or other programs.
That may be the largest proportion of cash sales ever, with the average typically hovering around 18 percent.
Many of the cash buyers are scooping up oceanfront properties as an investment, some people who pulled money out of the stock market are now ready to invest it in real estate.
"A lot of money has been sitting on the sidelines, Over time they're starting to gain their confidence back in the economy and in the real estate market."
As always, if you have any questions or would like to discuss real estate opportunities here in Myrtle Beach, please feel free to contact me.
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