Foreclosures are High in Grand Strand
The market in Grand Strand is in a topsy-turvy state. Sales are wavering and prices are plunging. Foreclosures are high. This was observe by data released by Multiple Listing Service Sales of single residential units plummeted by 10% last month in comparison with the corresponding period of previous year. Also sales of condominiums have increased by 2% last month.
This in part could be because of a deluge of foreclosures flooding the market. There are many short sales too. A short sale happens when a homeowner sells a home for a lower price than what he or she owes in the market.
An analyst with Coastal Carolinas Association of Realtors, Tom Maeser, says foreclosed properties are driving down home prices. This is happening particularly in the condominium market. The low prices of these homes are driving sales. Maeser said, “We’ve got to keep facing the fact that the foreclosures and short sales are driving the whole real estate market. Until we get rid of them we’re going to keep saying the same thing over and over again.”
There will be a jump in condominium sales too. Residential house prices had been very stable. The Federal Government had announced a tax credit for first time home buyers last year. When that credit was pulled off, home sales had crashed. Now there are efforts to revive the tax. However, there are other efforts to bring back stability.
The average price at which a home sold dropped by 3% to around $159,923 last month. Also condominium prices dropped. In fact, it dropped by 15% when compared to the corresponding period of previous year. The Coldwell Banker Chicora Real Estate, broker in charge, Rod Smith said that the market has become sloppy. It may get stuck also.
There is a mixture of things happening – while some sales are going up, some are plummeting. In a few regions, prices have stabilized. On others, there are properties that are taking very long to sell.
However, there is a silver lining too. There are properties that have multiple offers. Also higher priced properties are selling too. The broker-in-charge of Century 21 Boling & Associates, Penny Boling, said that the company had sealed many contractual sales last May. However, there were not many new sales in April and March. Boling is also of the opinion that the market is slowly reviving. There are many investors who are paying in cash.
