Tuesday, February 19, 2008

Time to buy that vacation home in Myrtle Beach

What may not be good for the investors who bought condos intending to "flip" over the past couple of years, has turned into good news for buyers and investors who waited.

Condominium and home prices in Myrtle Beach have dropped considerably during 2007, although it's still higher than it was before the condo boom of 2005. Prices of real estate along Myrtle Beach's sandy coastline nearly doubled at that time, and condo sales reminded me of our twice a year run of "spots", a local small fish that migrates through and permeates our waters in October and March.

When the spots run, you can throw in an un-baited hook and pull up a fish as fast as you can take it off and throw it back again. Such was the way condo buyers hit the beaches and resorts during the 2005 craze. If you had a preconstruction condo project, and you announced it publicly, you had sales... or at least deposits for them.

Many people made a lot of money in the very early days of the rush. Building was slow and the first developments that sold out were built and skyrocketed in price. The problems began after things continued to boom. Construction companies and builders were unable to handle the business load, and began to double the building costs to get a piece of the action. Eventually their prices made it nearly impossible to finish the projects that sold originally for lower prices.

The doom-sayers started predicting bubbles long before there were any, and after a while the investors grew scared so sales began to slow. Developers who could have afforded the padded building costs became unable to sell the last few units required to obtain the bank funding. Although North and South Carolina never did have a "bubble", per se, the condo rush slowed to a trickle, and many of the projects never materialized.

Over the past 6 or 7 months, prices have dropped somewhat on Myrtle Beach condos. A 2 bedroom that was originally $70,000, and had jumped to $130-$150,000, have now leveled off to $110-$120 instead. Many of the oceanfront condos that had climbed over a half-million are back into the 400's now.

But for buyers right now, this is a great time to pick up that perfect vacation home for a solid savings...as coastal real estate will start to increase in price when summer kicks in. Most folks say in about 17 months the crunch will be over, myrtle beach real estate sales will be hot, and prices will start to climb once again.

There won't be a better time to buy than right now. Just be prepared to hold on and enjoy it for a couple of years, and you'll have an investment to take pride in.

Contact Myrtle Beach CondoLux  for your vacation condo needs. They specialize in the best Myrtle Beach condo rentals.

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