Based on the latest statistics from the National Association of Realtors, the North Myrtle Beach real estate market will continue experiencing a lot of activity going into the second half of 2016, buoyed by a home buying season that is in full-swing. Compared to April 2015, homes in April 2016 moved more quickly by 8 percentage points as asking prices hit new record highs. The solid momentum this spring has caused homes to move faster with the median priced homes listed at $247,300, which is 9% higher than the listing price a year ago.
Despite the increasing for-sale housing inventory in 2016, the high demand has kept this inventory lower compared to 2015. The building boom in Myrtle Beach, SC is showing every sign of vibrancy and this in itself is a guarantee that home prices will keep on rising.
Home Buying in Spring
According to Coldwell Banker, Chicora Real Estate, spring is generally regarded as an opportune season to start searching for homes to buy in Myrtle Beach. This is because going into summer and autumn, home prices are likely to rise even further as people are cashing in on their investments. For instance, prior to Thanksgiving, homes selling at $200,000 or thereabouts end up costing new buyers an average of $10,000 more deep into the year.
The cost of land has been a major factor in the upsurge of real estate prices in 2016 and will certainly be a key driver to the end of the year and even beyond. Building costs are also on the rise, with materials such as concrete and lumber, as well as construction wages, increasing by approximately 5%.
In March 2016, sales of existing homes including townhomes, single-family homes, and condominiums grew by 5.1% as buyers overcame the steady price growth and decreased inventory levels to close on homes. Myrtle Beach being a mid-priced market is experiencing sturdy buyer demand thanks to reduced affordability pressures and low supply limitations.
Positive Financing News
According to data gathered from Freddie Mac, the 30-year fixed rate mortgage had an average commitment rate of 3.69% in March which was a slight improvement from the 3.66% witnessed in February 2016. However, the rate has maintained below 4% for 8 consecutive months and this has served to stimulate the market and raise the appetite for mortgages. From a historical perspective, when mortgage rates are low, first-time homebuyers tend to benefit much and from the way things are at the moment, the interest rates are very attractive. Talking to a Coldwell Banker Chicora Real Estate Agent about your real estate financing arrangements in 2016 can be an excellent idea.
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