Myrtle Beach Real Estate And New Construction Seeing Big Rebound
While many areas of the country have a glut of homes and in fact are even tearing down new homes that were foreclosed on in some areas the Myrtle Beach real estate market is beginning to experience the opposite problem, a lack of homes to sell!
Myrtle Beach home sales have risen 13.6% since February of 2012 according to the February Grand Strand Market Report released by SiteTech Systems, a company that tracks the Myrtle Beach real estate market. In addition, the single family median sales price bounced up to $175k from $160k in January. Every week there is less inventory available for sale in the distressed property market and the median price for condos is now at $110,000 which is higher than 2011 or 2012.
Some area REALTORS feel that the supply problem could be alleviated if financial institutions lending money to developers and contractors to build new homes would relax their rules somewhat. Currently the majority of lenders in the Myrtle Beach area only lend enough for the builder to construct two homes simultaneously. The fact remains that the law of supply and demand will govern the market so the fewer homes available for sale the higher the selling prices will go, how sharply prices rise will be dependent upon how quickly the building industry can catch up to the demand for new housing.
Meanwhile, the nationally known and recognized homebuilder Lennar announced the opening of its new Brookefield Estates community near Murrells Inlet, continuing its expansion in new developments in the Grand Strand region. A spokesperson for Lennar said that they expect to see nearly eighty percent growth from 2012 through this year. Due to the demand for housing independent homebuilders are also foreseeing increases of thirty to forty percent in business for 2013. The homes for sale in Brookefield range from $180k to over $220k but for a short time Lennar is giving $4000 towards closing costs.
Homes in the Myrtle Beach area vary greatly in cost of construction; homes in Brookefield for example will run around $100 per square feet making a 2000 square foot home cost $200,000 plus the cost of the home site. The cost of construction for some custom luxury homes can range from $140-$150 per square foot or higher depending upon the materials used and the price fluctuations of those materials.
All of the indicators show that this is a great time to buy, just as in the stock market it is better to buy on the way up than on the way down. With current interest rates at record lows and the current limited home supply now is the time to invest in Myrtle Beach real estate.