One thing realtors always have an eye on are trends in the real estate market, both nationally and locally. Keeping on top of real estate trends allows realtors to better help sellers determine asking prices for their homes and helps buyers know if a home they are interested in is worth the asking price. However, pricing isn’t the only thing realtors learn from real estate trends. Knowing the trends helps them see how available inventory is impacting sales in the area, how the rental market could be influencing the sales market and even helps them track the pace of rising home prices. As you can see, much can be learned from checking out the numbers and watching the trends. Let’s crunch some numbers!
Trends in Real Estate Sales
Compared to other areas of the country, the Myrtle Beach real estate market has enjoyed a steady, even pace of home price increases. The 3rd quarter of 2018 continues this trend of steady growth with a median home sales price of $170,000. Compared to the same period last year, the median sales price was $155,000. This shows an increase of about 10% over the last year – a reasonable and healthy rate of increase. This number covers 525 homes sold this quarter. The number of homes sold is lower than at any point in the preceding year, mostly due to low inventory available for buyers.
The median price per square foot increased 3% to $122 per square foot from the price last year of $118. Why the difference for the increase percentage in median home sales price compared to the price per square foot? Both numbers are including total sales of homes from as small as one-bedroom homes to four-bedroom homes. The biggest increases in median home sales prices by number of bedrooms from the same period of 2017 to 2018 were in three-bedroom homes (median sales price increase of 7.5%) and one-bedroom homes (median sales price increase of 3.9%). Two-bedroom homes and four-bedroom homes saw the smallest increases in median home sales prices. The mix of smaller and larger homes experiencing the higher median sales price increases keeps the median price per square foot more consistent.
How Rentals Impacted Myrtle Beach Real Estate Trends
Rentals generally follow the same formula of supply and demand that home sales follow. When the supply (inventory) is much lower than the demand (buyers or renters), prices go up. When median rental prices are higher, the more likely renters are to consider buying a home – especially if their potential mortgage payment could be lower than what they’re paying to rent. The median cost of rentals for Q3 2018 was $1,500 – only a $50 increase from the same period last year. Part of the reason rental costs have held fairly steady is an increase in the number of available rentals at 146 this quarter to 113 for the same time in 2017. With rental prices holding steady, renters have the option to wait for new constructions to help increase available inventory and provide them with more buying options.
Watching real estate trends might sound as exciting as watching paint dry, however, there is so much valuable information to learn from the trends. While realtors are always watching the trends and crunching the numbers, potential buyers can also use the trends to help determine their best time to buy.