Grand Strand Market Slowest in S.C.
Homes are staying on the market longer and real estate sales are falling more on the Grand Strand of South Carolina than in any other area of the state.
Sales inland are doing just fine with many double-digit increases - and booming in Rock Hill with a 66 percent increase in the first quarter.
The entire coast, however, is seeing falling sales - and the Myrtle Beach housing market is in the lead.
Home and condo sales tumbled 31 percent on the Grand Strand, followed by a 20 percent drop in Beaufort, a 16 percent drop in Hilton Head and a 16 percent drop in Charleston, the S.C. Association of Realtors says.
The group says skyrocketing homeowner’s insurance prices are a big reason, as real estate agents say many would-be home buyers are asking about insurance prices first.
Despite low South Carolina mortgage rates, homes are also sitting on the market longer on the Strand than anywhere else in the state.
For the first quarter, homes and condos took 218 days to sell. The Southern Midlands had the next longest number of days at 181. Beaufort followed at 161 days. The state average is 135 days.
As home sales moderate on average statewide, the state association predicts home prices and applications for South Carolina mortgages to stay flat this year, said Nick Kremydas, CEO for the state Realtors.
“This is the year that we catch our breath,” he said.
“By the end of the year, we’ll be close to the 2006 level [of sales]. 2008 will be a better year.”
While insurance is contributing to the coastal housing market drop, the meltdown in the subprime (bad credit mortgage) lending industry is also a factor.
“It’s starting to affect, particularly, first-time home buyers. In some ways the shake-out of the industry is a good thing, but in other ways it’s making it harder for families to have access to other lending products,” Kremydas said.
As the property insurance reform debate continues, Kremydas says the association is backing the governor’s plan to encourage more insurance companies to come to the state, which should help boost the South Carolina housing market.
He said they are also backing the insurance reform bill put together by Gov. Mark Sanford and Insurance Director Scott Richardson.
Kremydas said it’s going to take a mix of federal, state and local efforts to reduce homeowner’s insurance costs.
The association is also joining with the National Association of Realtors to survey agents on how insurance has affected their property and their business.
One local real estate agent who completed her survey, Martina Haire of Century 21 Broadhurst, said she’d recently been dropped by Allstate for a single-family home policy she’s had for at least 12 years. So far, the only quote she’s received for new insurance was $400 higher from State Farm.
She’s seeing the problems with her clients. Some are considering selling and moving inland, where home loan costs are cheaper.
Others are taking second jobs to cover the cost.
The survey results won’t be ready until June and will be shared with state officials and lawmakers to direct efforts for solutions, Kremydas said.
SOURCE: Myrtle Beach Online