Are you considering buying a home in Myrtle Beach, SC? The housing market in this coastal city has experienced significant changes in recent times. Myrtle Beach has a diverse real estate market, with a range of properties available, including beachfront condos, townhouses, and single-family homes. Whether you're a potential buyer, seller, or investor, understanding the market dynamics can help you make informed decisions. Let's explore the numbers and factors shaping the real estate landscape in Myrtle Beach.
Current Myrtle Beach Housing Market Trends
According to the insights provided by realtor.com®, currently, Myrtle Beach, SC is identified as a buyer's market in December 2023. This designation indicates that the supply of homes exceeds the demand, offering favorable conditions for prospective buyers. For individuals looking to invest in property, this status presents opportunities for negotiation and potentially favorable purchase terms.
Median Listing Home Price and Year-over-Year Trends
As of December 2023, the median listing home price in Myrtle Beach, SC stands at $305,000, reflecting a -11.6% year-over-year trend. This data indicates a notable decrease in property values compared to the previous year. Homebuyers and sellers alike are impacted by this shift, shaping the overall real estate dynamics.
Median Listing Home Price per Square Foot
Another significant metric to consider is the median listing home price per square foot, which currently stands at $247. This data provides insights into the cost efficiency and spatial value of properties in Myrtle Beach, SC. Prospective buyers can use this information to make informed decisions based on their budget and spatial preferences.
Sale-to-List Price Ratio and Market Dynamics
The sale-to-list price ratio in Myrtle Beach, SC is reported at 96.57%. This implies that, on average, homes in the area sold for 3.43% below the asking price in December 2023. Understanding this ratio is crucial for both buyers and sellers as it influences negotiation strategies and overall market competitiveness.
Median Days on Market and Trends
The median days on market for homes in Myrtle Beach, SC is recorded at 72 days. This metric provides insights into the pace at which properties are sold. Over the past year, there has been a noticeable increase in the median days on market, signaling a shift in the speed of real estate transactions in the area. This trend is essential for sellers to consider when setting expectations for their property's time on the market.
Outlook for the Myrtle Beach Housing Market
- Prices: Prices are expected to remain stable or decline slightly in the coming months.
- Market Outlook: The market is expected to remain a buyer's market for the foreseeable future.
- Housing Inventory: The number of homes for sale is expected to continue to increase.
Myrtle Beach Housing Market Forecast for 2024
According to Zillow, the Myrtle Beach housing market continues to show resilience and growth. As of December 31, 2023, the average home value in Myrtle Beach is $295,796, reflecting a 0.4% increase over the past year. Homes in this vibrant coastal city are going to pending status in approximately 39 days, indicative of a robust real estate market.
Key Housing Metrics Explained:
For Sale Inventory (December 31, 2023):
2,037 homes are currently available for sale in Myrtle Beach, providing a diverse range of options for potential buyers.
New Listings (December 31, 2023):
478 new listings have entered the market, contributing to the city's dynamic real estate landscape.
Median Sale to List Ratio (November 30, 2023):
The median sale to list ratio as of November 30, 2023, stands at 0.970, indicating a balanced negotiation process between sellers and buyers.
Median Sale Price (November 30, 2023):
The median sale price for homes in Myrtle Beach, reported as $244,633 as of November 30, 2023, showcases the city's affordability and attractiveness to potential homeowners.
Median List Price (December 31, 2023):
With a median list price of $296,457 as of December 31, 2023, Myrtle Beach remains an attractive destination for real estate investment.
Percent of Sales Over List Price (November 30, 2023):
4.9% of sales in Myrtle Beach have exceeded the list price, indicating competitive demand in certain segments of the market.
Percent of Sales Under List Price (November 30, 2023):
On the flip side, 83.9% of sales are under the list price, showcasing a market where buyers often find value for their investment.
Myrtle Beach MSA Housing Market Forecast:
The Myrtle Beach Metropolitan Statistical Area (MSA) housing market is projected to experience steady growth in the coming months. According to the forecast for January 31, 2024, the market is expected to see a minor decrease of 0.1%, followed by a more significant decline of 0.5% by March 31, 2024. However, the market is anticipated to rebound and thrive with a projected increase of 4% by December 31, 2024.
The Myrtle Beach Metropolitan Statistical Area encompasses various counties in South Carolina. The key counties contributing to this MSA include, but are not limited to, Horry County. With its beautiful beaches, golf courses, and vibrant community, Myrtle Beach MSA has become a sought-after destination for both residents and tourists.
Are Home Prices Dropping in Myrtle Beach?
Contrary to a drop in home prices, the data reveals a 0.4% increase in the average home value over the past year, reaching $295,796 (as of December 31, 2023). This indicates a stable and appreciating market, making Myrtle Beach an attractive option for potential homeowners and investors alike.
Will the Myrtle Beach Housing Market Crash?
As of the current analysis, there are no indications of an impending housing market crash in Myrtle Beach. The steady increase in home values, coupled with a balanced median sale to list ratio of 0.970 (as of November 30, 2023), suggests a resilient and well-functioning market. However, it's crucial to monitor market trends and economic factors for any potential shifts in the future.
Is Now a Good Time to Buy a House in Myrtle Beach?
For potential buyers, the current market conditions in Myrtle Beach present both opportunities and challenges. While it is a seller's market with limited inventory, the median sale price of $244,633 (as of November 30, 2023) indicates affordability. Buyers should carefully assess their needs, budget, and preferences to determine if now is the right time to make a purchase. Engaging with a knowledgeable real estate professional can provide valuable insights tailored to individual circumstances.
Overall, Myrtle Beach's housing market appears stable, and the decision to buy or sell should be based on careful consideration of individual goals and market dynamics.
How is Real Estate Investing in Myrtle Beach?
Investing in real estate can be a smart decision, especially when you consider the long-term potential for appreciation and the potential for passive income through rental properties. Here are some top reasons to consider investing in the Myrtle Beach real estate market:
- Strong Economy: Myrtle Beach is a popular tourist destination, which means there is a strong economy supported by the tourism industry. This translates into a steady stream of visitors and a demand for rental properties.
- Rental Population: Myrtle Beach has a significant population of renters, with nearly 50% of the population renting rather than owning their homes. This creates a strong demand for rental properties and potential for steady rental income.
- Tax Environment: South Carolina is known for its favorable tax environment, with no estate tax, low property taxes, and no state inheritance tax. This can make it an attractive place to invest in real estate and potentially generate higher returns.
- Affordable Market: Compared to other popular vacation destinations, the Myrtle Beach real estate market is relatively affordable, which means investors can potentially acquire properties at lower prices and generate higher returns on their investment.
- Potential for Appreciation: Myrtle Beach has been experiencing steady growth in the real estate market over the past several years, with home values increasing steadily since 2015. This trend is likely to continue as the area continues to attract new residents and tourists.
However, there are also some potential drawbacks to investing in the Myrtle Beach real estate market:
- Seasonal Market: While Myrtle Beach is a popular tourist destination, the real estate market can be seasonal. Demand for rental properties and home sales may slow down during the off-season, which could impact cash flow for investors.
- Property Management: If you plan to invest in rental properties, you will need to manage them or hire a property manager to do so. This can be time-consuming and costly, and there is always a risk of tenant turnover and other issues that could impact cash flow.
- Competition: While the Myrtle Beach real estate market may be affordable compared to other vacation destinations, it is still a competitive market. Investors may need to act quickly to acquire properties and may face stiff competition from other buyers and investors.
- Hurricane Risk: As a coastal city, Myrtle Beach is at risk for hurricanes and other natural disasters. This risk could impact property values and create additional costs for investors in terms of insurance and maintenance.
In conclusion, the Myrtle Beach real estate market offers a number of potential benefits for investors, including a strong economy, rental population, favorable tax environment, affordability, and potential for appreciation. However, investors should also be aware of the potential drawbacks, including a seasonal market, property management challenges, competition, and hurricane risk. By carefully weighing these factors, investors can make an informed decision about whether the Myrtle Beach real estate market is right for them.
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.