Report: Myrtle Beach real estate market remains hot as interest rates and prices climb

Coming out of the pandemic, Myrtle Beach’s housing market was so strong that some industry analysts compared it to other southern real estate giants like Bradenton, Fla. or Charleston, as loan applications Mortgages for homes in the city jumped nearly 18% between 2019 and 2020.

But the current conditions, namely rising interest rates, could start the trend. .

The findings of a new publication study issued by Inspection Support Network – a major maker of software for home inspection companies – meant Myrtle Beach had the 15th highest year-over-year increase in nationwide mortgage applications among cities of similar sizes between 2019 and 2020, placing it just behind other real estate hotspots, including Bradenton, Fla., and the Charleston area.

But in its April market report, the Coastal Carolina Association of Realtors said rising house prices and rising interest rates have affected purchasing power.

Fixed mortgage rates are currently at 5.3%, according to Freddie Mac. This is the highest level since 2011.

“We continued to think that interest rates were going to push buyers out of the close. But we’ve also seen a number of sellers come out of the fence” as interest rates fluctuate. “We didn’t expect to see this much urgency,” said Jamie Broadhurst, a Myrtle Beach-based agent and the association’s new president.

Cole Williams, broker at Myrtle Beach-based Revolution Mortgage, said the Grand Strand area will still be attractive to homebuyers, even if momentum slows at times.

“Rates and house prices are up across the country, so everyone feels the same way. One thing we have in Horry County is an extremely low tax rate that will continue to attract many new homeowners from the Midwest and Northeast,” he said. “If you live in one of those places, you might be paying $1,200 a month or more in taxes and that would be your annual insurance in Horry County.”

In the Grand Strand, median home sale prices have jumped nearly a quarter since April 2021, from $274,920 to $342,500.

“Interest rates are only one of the factors contributing to the overall market slowdown. Inventory issues discourage financial buyers,” Williams said. “There seem to be multiple offers on every home under contract, and cash is king.”

Home availability in South Carolina’s fastest growing county is shrinking. Between April 2021 and this year, inventories have fallen by more than a quarter, while available homes are on the market five days less.

“Do I see it (inventory) going back to where we were before COVID? Absolutely not,” Broadhurst said.

Related Stories from Myrtle Beach Sun News

Comments are closed.