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CertifaxAppraisals.com: 5 Key Indicators - Has Myrtle Beach Real Estate Hit Bottom?
Kay Van Hoesen, founder of real estate consulting firm Certifax Appraisals, announces 5 key housing indicators pointing toward a Myrtle Beach real estate market poised for a rebound.
1. Number of Housing Units Sold
Single family home sales in May 2012 increased 17% from the same month last year, and condo sales were up 12% from the prior year. However, it's not all roses. In April, single family sales were down 3%, and condo sales were off 8%. Additionally, in March 2012, single family sales were up only 1%; condominum sales were down 10%. (charts and graphs available at certifaxappraisals.com/
2. Pricing Trends
The only category to show a decline has been condos and houses priced over $450,000.
For properties priced under $450,000, median single family and condo prices have been stable to increasing over the last 12 months.
3. Ratio of Sales to Listings
In 2009, the ratio of single family sales-to-listings was only 51%. That ratio has improved year-by-year to the current ratio of 80% for the 12 months ended May 31, 2012. Likewise, among condos, the ratio has improved from only 35% in 2009 to 72% in 2012.
Most real estate professionals agree that a six-month supply represents balanced inventory. To measure supply, divide the current number of available listings by the absorption rate (median number of sales per month).
Currently, a 13-month supply exists among both condos and houses. However, and this is an important consideration, many sellers have substantially overpriced their listings with unrealistic expectations. Thus, their listings linger on the market and skew the data. A better indicator is the median number of days it takes to sell a listing, because the sensibly-priced listings are the ones that attract buyers.
5. Median Days on Market for Properties Sold
Notable are the declining days on market; that is, the median number of days it took for a listing to sell. Over the last 12 months, days on market have declined from 5.5 months to 4 months for both condominiums and single family homes.
"Provided there are no cataclysmic events or there’s not another round of foreclosure shadow inventory entering the market, all indicators point to a Myrtle Beach real estate market poised for a rebound," said Van Hoesen.
See all charts and graphs at http://www.certifaxappraisals.com/