If you’ve heard of Myrtle Beach, it may be because you’ve visited there or heard it described as a cheap, family-friendly version of Florida’s many vacation destinations. However, there are many points in favor of Myrtle Beach, whether you’re a tourist or a real estate investor. In this article, our focus will be on the Myrtle Beach real estate market and investment opportunities in 2020.
Myrtle Beach, South Carolina is home to around 35,000 people. However, the Myrtle Beach real estate market is much larger than this. Myrtle Beach is located in the middle of a long stretch of beachfront called “The Strand”. This broader area is home to nearly a half a million people.
If you are considering buying or investing in Myrtle Beach properties, you will certainly want to do plenty of research in advance. The more information you can have about the Myrtle Beach real estate market, the better off you will ultimately be.
Is Myrtle Beach going to be one of the best markets for real estate investing in 2020? Let’s take a deep look at the latest Myrtle Beach housing market trends to come to a conclusion.
Myrtle Beach Real Estate Forecast 2020
The real estate data from Zillow shows that the current median home value in Myrtle Beach is $156,300. Currently, the Myrtle Beach is a seller’s market. The home prices have risen by 6.5% over the last year. And looking forward into the coming year, the Myrtle Beach real estate market forecast is that home prices will continue to rise by 3.8%.
Here is the Myrtle Beach, SC real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.8% till Oct 2020.
The median list price per square foot in Myrtle Beach is $175, which is higher than the Myrtle Beach-Conway-North Myrtle Beach Metro average of $137. The median price of current listings in Myrtle Beach is $189,900 and the median price of homes that have been sold is $144,600.
Zillow reports that 14.2% of the listings in Myrtle Beach had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median rent price in Myrtle Beach is $1,100, which is lower than the Myrtle Beach-Conway-North Myrtle Beach Metro median of $1,300.
Myrtle Beach Housing Market Forecast 2019 – 2021
Here is a short and crisp Myrtle Beach housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Myrtle Beach is 82% and it is predicting a positive trend.
The LittleBigHomes.com estimates that the probability for rising home prices in Myrtle Beach is 82% during this period. If this price forecast is correct, the Myrtle Beach home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Myrtle Beach, SC Real Estate Market Forecast.
Myrtle Beach Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Myrtle Beach area. Trulia currently has 4,212 resale and new homes for sale in Myrtle Beach, SC including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price in Myrtle Beach is $165,000 and homes are selling for about $132/sqft.
Some of the most popular neighborhoods in Myrtle Beach are Ocean Forest, Plantation Point, Myrtle Ridge, Owens and Konig. Here you’ll find the maximum no. of homes for sale and rent.
In the past month, 452 homes have been sold in Myrtle Beach, SC as reported by Redfin.com. In addition to houses in Myrtle Beach, there were also 1572 condos, 166 townhouses, and 6 multi-family units for sale in Myrtle Beach last month. The median price per square foot in Myrtle Beach has increased by 13.8% over the past year.
As per their real estate data, the Myrtle Beach housing market is not very competitive. Homes in Myrtle Beach receive 1 offers on average and sell in around 97 days. The average sale price of a home in Myrtle Beach was $195K last month, up 4.0% since last year. The average sale price per square foot in Myrtle Beach is $132, up 13.8% since last year. A hot listing in Myrtle Beach can sell for around list price and go pending in around 53 days.
Here is the latest Myrtle Beach, SC housing market data for the month of Nov 2019 from Redfin.com.
Myrtle Beach Housing Market Trends in Nov 2019 |
|
| Median List Price | $232,000 |
| Avg. Sale / List | 97.4% |
| Median List $/Sq Ft | $147 |
| Avg. Number of Offers | 1 |
| Median Sale Price | $195,000 |
| Avg. Down Payment | 10% |
| Median Sale $/Sq Ft | $132 |
| Number of Homes Sold | 452 |
There are 4,712 homes for sale in Myrtle Beach, SC on Realtor.com. The new listed homes for sale are 214. The asking price of single family homes can start from $85,000 and can go up to $3.9M for a luxury property in the most expensive neighborhood in the city of Myrtle Beach, South Carolina.
There are currently 243 rental properties available in Myrtle Beach, and their rent prices range from $460 to $75K per month. You can find a lot affordable apartments for rent located just three miles from the campus of Coastal Carolina – Mainly good student community.
A furnished studio can be rented for about $660/mo in the South Myrtle Beach neighborhood in the city of Myrtle Beach, SC. The median rent in Myrtle Beach is $1,290. There are 1106 new construction homes for sale in Myrtle Beach within a price range of $159,000 to $2.7M.
According to their statistics, in November 2019, the Myrtle Beach housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.
It is interesting to note that in spite of less no. of sales, the prices did not drop to a large extent. On an average, sellers could sold homes for 96.34% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Myrtle Beach, the sellers have held good leverage in these negotiations in the past month.
In November 2019, the median list price of homes in Myrtle Beach, SC was $189K, flat year-over-year. The median listing price per square foot was $149. The median sale price was $163.5K. On average, homes in Myrtle Beach, SC sell after 92 days on the market. The trend for median days on market in Myrtle Beach, SC has gone up since last month, and slightly down since last year.
The median list price in Myrtle Beach, SC is $236,900 on Movoto.com. The median list price in Myrtle Beach was less than 1% change from November to December. Myrtle Beach’s home resale inventories is 3,346, which decreased 1 percent since November 2019.
The median list price per square foot in Myrtle Beach is $217. In November 2019 it was $217. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.
Myrtle Beach, SC Single & Multi-Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.
For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.
As per the real estate company called Neigborhoodscout.com, the median house price in Myrtle Beach, SC is $216,465, which indicates that home prices in Myrtle Beach are well above the national average for all cities and towns in the United States.
Large apartment complexes homes are the single most common housing type in Myrtle Beach, accounting for 48.23% of the city’s housing units. One or two bedroom apartments are the most common housing units in Myrtle Beach. Other types of housing that are prevalent in Myrtle Beach include single-family detached, duplexes, homes converted to apartments and a few row houses. Myrtle Beach has a mixture of owner-occupied and renter-occupied housing.
After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S. In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).
Currently, there are 458 single family homes for sale in Myrtle Beach, SC on Zillow. Additionally, there are 28 single family homes for rent in Myrtle Beach, SC. Under potential listings, there are about 1 Foreclosed and 74 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Myrtle Beach, SC Foreclosures And Bank Owned Homes Statistics
As per the Myrtle Beach foreclosure data by Zillow, the percent of delinquent mortgages in Myrtle Beach is 0.6%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Myrtle Beach homeowners underwater on their mortgage is 14.4%.
| Total No. of Foreclosures in Myrtle Beach | 226 (RealtyTrac) |
| Homes for Sale in Myrtle Beach | 1,902 |
| Recently Sold | 3,311 |
| Median List Price | $194,000 (3% drop vs Sep 2018) |
There are currently 226 properties in Myrtle Beach, SC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,902.
In October 2019, the number of properties that received a foreclosure filing in Myrtle Beach, SC was 11% lower than the previous month and 240% higher than the same time last year.
Best Neighborhoods to Invest in Myrtle Beach Real Estate
If you are looking to invest in the Myrtle Beach real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Myrtle Beach rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Myrtle Beach real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Myrtle Beach rental property should be low. The neighborhoods in Myrtle Beach must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
Myrtle Beach is a minimally walkable city in Horry County. There are 15 elementary schools, 10 middle schools, 7 high schools and 9 private & charter schools. There are 22 neighborhoods in Myrtle Beach.
Some of the best neighborhoods in Myrtle Beach, South Carolina are South Myrtle Beach, Arcadian Shores, River Oaks Golf Plantation, Waterway Palms Plantation, Carolina Forest, Myrtle Beach, Southgate at Carolina Forest, The Bluffs on the Waterway, Myrtle Pointe, Dunes of Myrtle Beach, Market Commons, Myrtle Beach Boardwalk, Covington Lake, Arrowhead, Myrtlewood, Forestbrook, Grande Dunes, and Seagate Village.
The Dunes has a median listing price of $919.5K, making it the most expensive neighborhood. Island Green is the most affordable neighborhood in Myrtle Beach, with a median listing price of $94.5K.
Here are the best neighborhoods to invest in Myrtle Beach real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
| 1 | Cathedral Bible College / Route 17 |
| 2 | Ocean Forest |
| 3 | Route 17 / Coventry Rd |
| 4 | S Kings Hwy / Howard Pky |
| 5 | Garden City |
| 6 | Forestbrook |
| 7 | Pine Island |
| 8 | Holmestown Rd / Socastee Blvd |
| 9 | Lakewood / Long Bay Estates |
| 10 | Moorland Dr / Legends Rd |
How is Real Estate Investing in Myrtle Beach?
Now that you know where Myrtle Beach is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Myrtle Beach real estate?
If you want to find out whether Myrtle Beach real estate is a good investment or not, you need to drill deeper into local trends. The Myrtle Beach real estate trends will tell what the market holds for the year 2020. We have already discussed the Myrtle Beach housing market forecast for 2020.
Although, this article alone is not a comprehensive source to make a final investment decision for Myrtle Beach but we have collected ten evidence based positive things for those who are keen to invest in the Myrtle Beach real estate. Investing in Myrtle Beach rental properties will fetch you good returns in the long term as the home prices in Myrtle Beach have been trending up year-over-year.
Let’s take a look at the number of positive things going on in the Myrtle Beach real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Myrtle Beach real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Affordable Myrtle Beach Real Estate
The Myrtle Beach real estate market is affordable by South Carolina standards. The median home price for the state is just over 170,000 dollars. The average price of a home in the Myrtle Beach housing market is 156,000 dollars as of 2019.
Another point in favor of Myrtle Beach real estate investment is that it is a relative bargain for locals. Myrtle Beach is one of the cheaper suburbs in the Myrtle Beach-Conway-North Myrtle Beach metro area. The average home in this area is roughly 200,000 dollars.
2. The Impact of Geography
The Myrtle Beach real estate market is literally constrained. The Atlantic Ocean is to the east. Waccamaw National Wildlife Refuge and a number of other state parks and wilderness areas bound the city’s western side. This prevents the city from expanding much except along the various highways.
3. The Strong ROI on Myrtle Beach Investment Properties
The average rent on an apartment in the Myrtle Beach housing market was 1100 dollars a month. A single bedroom apartment nets nearly 900 dollars a month. Two and three bedroom homes are the most common type of properties in the Myrtle Beach real estate market.
This means you could easily charge 1400 dollars a month or more for a rented out single family home. What about rentals to tourism? The rental income on these properties ranges from 20-40,000 dollars a year, depending on how desirable it is and the occupancy rate you can get over the busy summer season.
4. The Slow and Steady Real Estate Appreciation
The Myrtle Beach housing market is seeing slow, steady appreciation. Home prices grew 6.5 percent in 2019. They are projected to rise nearly 4 percent in 2020. This is slightly below the South Carolina state average. The state itself saw an average 5.5 percent appreciation in 2019 and is expected to see nearly 4 percent appreciation in 2020.
However, this means that the Myrtle Beach real estate market could appreciate much faster and still not be considered overheated. And unlike many other coastal areas, the value of a Myrtle Beach real estate investment property won’t crater because of a market correction.
5. The Low Tax Rate
South Carolina has a lower than average tax burden. The average state and local tax burden is eighth lowest out of the fifty states. The state has a modest income tax rate. If you’re considering Myrtle Beach real estate investment, know that the state is near the bottom in terms of property taxes. The average home has a roughly 0.5 percent property tax bill. For comparison, the average property tax rate nationwide is 1.1 percent.
6. The Cheap Property Insurance
If you’re considering investing in beachfront property in the Southeastern United States, the first place most people think of is Florida. The state on the whole has high property prices, but this may be offset by the potential tourism income. However, the cost of maintaining the property is high, and this is partially due to the fact that Florida has some of the highest insurance rates in the country.
In contrast, South Carolina’s property insurance rates are in line with the national average. If a hurricane hits Florida, at worst, your Myrtle Beach real estate investment property is exposed to heavy winds and rains several days later. However, the Myrtle Beach housing market is rarely hit directly by hurricanes.
Coastal flooding can be an issue, but you can mitigate that by not buying property directly on the water or high enough above the short that ten foot waves won’t destroy it.
7. The Favorable Legal Climate
South Carolina is, on the whole, landlord friendly. State law doesn’t limit security deposits. It must be returned within 30 days. The state does limit how much you can charge for late fees. The state doesn’t have notice of entry laws. Severe lease violations like drug arrests can be used to terminate the lease within two weeks. There is no notification period required to raise the rental rate.
8. The Grey Wave
Baby Boomers are retiring en mass. While many choose to relocate to Florida, others are choosing to move to more affordable areas. South Carolina offers an equally hospitable climate with a lower risk of hurricanes and more moderate summers.
Myrtle Beach isn’t at the top of the list of cities seeing an influx of retirees, but it is primed to benefit from this trend. After all, where else can you enjoy South Carolina’s low taxes and great weather as well as affordable beachfront real estate? Then there’s the fact that the state doesn’t tax Social Security benefits at all.
9. The Tourism Market
One reason to consider Myrtle Beach real estate investment is the tourism market. The area is known for its white sandy beaches and many world-class golf courses; there are 90 full golf courses in the area. There are campgrounds and family-friendly resorts. This is why Myrtle Beach is one of the tourism hotspots in the state. And it is growing.
The area generated about 22 billion in tourism dollars in 2018, and 2019 saw 1.4 billion dollars more in tourism revenue from the roughly 14 million visitors. That’s nearly 5 percent growth year over year. And Myrtle Beach allows for investment properties to be rented out to these visitors on a short term basis provided you pay the appropriate hotel taxes.
Furthermore, we can expect many of these repeat visitors to decide to retire here, propping up the Myrtle Beach housing market long-term. Just look at Hilton Head and how retirees already make up a third of their population.
10. The Overall Quality of Life
One point in favor of the Myrtle Beach real estate market is the overall quality of life. North Myrtle Beach’s schools were rated B+. Hilton Head’s schools are an A-, though far fewer people can afford to live there. The entire area gets an A in terms of quality of life and amenities for retirees. This bolsters the value of homes in the Myrtle Beach housing market.
Investing in Myrtle Beach Real Estate: The Conclusion
Maybe you have done a bit of real estate investing in Myrtle Beach but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
The Myrtle Beach housing market offers affordable real estate, decent rates of return, a steady housing market and the opportunity for tourism revenue. It is amenable to property owners, and it is primed for long-term growth.
A good cash flow from Myrtle Beach investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Myrtle Beach real estate investment opportunity would be a key to your success. If you invest wisely in Myrtle Beach rental real estate, you could secure your future.
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. Most investors naturally gravitate to residential property investment.
When looking for the best real estate investments in Myrtle Beach you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing locally in the Myrtle Beach real estate market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Myrtle Beach real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
Another good market to choose for real estate investment is Winston-Salem, NC. The Winston-Salem metro area offers a steady, slowly appreciating real estate market poised for long-term growth. Combine this with a tax and legal climate friendly to investors, and it is worth considering.
The strong local economy is a good reason to consider Winston-Salem real estate investment. The local economy is seeing 1.6 percent job growth per year. It will have better than average job growth for the next ten years. This is one reason why people are moving to the Winston-Salem housing market. More importantly, because the city’s economy isn’t tied to a tech bubble or government growth, it won’t suffer a collapse if one industry busts, either.
The other best place to invest in real estate is Redding, CA. Redding is a stable, semi-rural area that enjoys slow, steady growth. For investors, it provides an opportunity to profit from one of the most hospitable rental markets in the state. One point in favor of the Redding real estate market is that it has relatively high rental rates.
The average apartment rents for around 900 dollars a month. A single family home in the Redding housing market easily rents for over 1100 dollars a month. For a large three or four bedroom home, you could charge 1500 dollars a month or more. The modest tourism market raises the possibility you could earn even more via short term rentals.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Low taxes
https://realestatescorecard.com/library/story/taxes/tax-comparison-north-carolina-verses-south-carolina
https://taxfoundation.org/state/south-carolina/
Landlord friendly
https://www.avail.co/education/laws/south-carolina-landlord-tenant-law
Affordable real estate
https://www.zillow.com/myrtle-beach-conway-north-myrtle-beach-metro-sc_r394898/home-values/
Grey Wave
http://www.activenc.com/index.php?option=com_content&view=article&id=99&Itemid=551
https://www.visitmyrtlebeach.com/relocation/retire/ https://smartasset.com/retirement/best-places-to-retire-in-south-carolina
Insurance
https://quotewizard.com/home-insurance/south-carolina
The Tourism Market
https://www.visitmyrtlebeach.com/media/media-resources/press-kits/myrtle-beach-area-fast-facts/ https://www.wmbfnews.com/2019/02/25/myrtle-beach-businesses-feel-impact-record-breaking-tourism/
https://www.masc.sc/Pages/newsroom/uptown/March-2017/A-short-guide-to-short-term-rentals.aspx
Quality of life
https://www.niche.com/places-to-live/search/best-places-to-retire/s/south-carolina/
Rent / ROI
https://www.rentjungle.com/average-rent-in-myrtle-beach-sc-rent-trends/ https://blog.evolvevacationrental.com/2018-vacation-rental-performance-report-myrtle-beach-sc/
Updated Market Prices, Trends & Forecasts
https://www.zillow.com/myrtle-beach-sc/home-values/
https://www.redfin.com/city/12572/SC/Myrtle-Beach/housing-market
https://www.realtor.com/realestateandhomes-search/Myrtle-Beach_SC/overview
https://www.movoto.com/myrtle-beach-sc/market-trends/
https://www.realtytrac.com/statsandtrends/sc/horry-county/myrtle-beach
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