How Bad Is It?

By
Real Estate Agent with Price & Company Realty
South Carolina is hurting, and the housing market feels the pain. Data released through the Home Mortgage Disclosure Act shows a mixed bag of hardship and promise throughout the Myrtle Beach real estate market. While it is true that our market freefall has ended, and 2009 home sales ended the year above 2008 numbers, the real newsmaker is the sheer magnitude of the decline, with sales dropping by more than 80% in some areas.

The one bright spot in the Myrtle Beach market is the area east of Kings Highway from 8th Avenue North to Withers Swash, which experienced an almost 29% increase in mortgages.

Most areas showed double-digit declines, most notably along the Myrtle Beach oceanfront between 8th Avenue North and 21st Avenue North, where the number of mortgages dropped almost 90%. The Forestbrook area was hit hard as well, with declines topping 85%. And while investor and second-home mortgages were down significantly, they still accounted for more than 40% of all mortgages last year.

Industry experts say that the mortgage delinquincy rate - the percentage of loans that are 90 or more days late - is at 4.76% and rising in Horry County. Foreclosures are likely to continue "well into" 2010, continuing the difficulty banks are experiencing and contributing to their miserly lending environment.

High unemployment is likely to continue for the foreseeable future as well. An analyst for the South Carolina Employment Security Commission said that the state would have to create 2,000 jobs a month - for the next five years - to make up for the number of jobs lost over the past two years.

Well, we can hope.

Comments (3)

Michael Delaware
North Sky Realty LLC - Battle Creek, MI
REALTORĀ®, CRS, GRI

Yes, I believe the trend runs deep across the country.  We have had quite a bit of job loss and REO activity here in Michigan.

Jan 31, 2010 09:25 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Our market in San Ramon CA is pumping. We have very low inventory leading to multiple offers. However, we do have jobs, well-paying jobs. I think a place like Myrtle Beach is suffering due to it's being a second-home market and an absence of well-paying jobs.

Jan 31, 2010 09:28 AM
Richard M. Sander
Price & Company Realty - Myrtle Beach, SC
Your Myrtle Beach Real Estate Expert

Vickie, you're exactly right. If we had well-paying jobs instead of golf coursees, we would definitely be well along the road to recovery.

Jan 31, 2010 09:33 AM