Market Update, Myrtle Beach, Pawleys Island, South Carolina Real Estate

Murrells Inlet & Waccamaw Neck

Real Estate Market Report for December 2020

Market Summary and Opinion

The last 7 months of 2020 were nothing short of extraordinary in the local housing market. Our market enjoyed a perfect storm of low interest rates and a COVID induced uptick in demand for residential real estate in our area. The net result of the impact in the Murrells Inlet and Pawleys Island markets was much different and those differences are outlined below.

In the greater Pawleys Island area, motivated buyers found an ample supply of properties for sale. Since the housing crash (over 15 years ago), higher priced and larger homes have not been in favor. Since the Pawleys area is primarily a market for larger, more expensive homes, the pace of sales remained steady and “good” in the post housing crash years. But prior to COVID, inventory levels remained persistently high. In fact, the greater Pawleys Island market through 2019 could still be considered a buyers’ market. But, the post COVID shutdown buying spree brought higher priced and larger homes back in to favor and for the first time since the mid 2,000’s housing boom, the Pawleys Island market began to feel like a seller’s market. In fact, more homes, condos and lots closed in each of the last 7 months of 2020, June through December, than closed in any of those months in over 15 years. By years end, 19.4% more houses sold than in 2019 and median prices rose a robust 11.5%.

In the greater Murrells Inlet area, buyers also returned in full force after the shutdown was lifted. But median prices are over $100,000 lower in Murrells Inlet and the post COVID shutdown surge of buyers really felt more like a return to full speed. In fact, only 4 of the last 7 months of the year saw more closings in 2020 than in 2019. By years end, the market absorbed only 2.8% more homes than 2019 and posted a respectable 9.8% increase in median prices. So, while Pawleys Island had inventory to sell off, Murrells Inlet went from a tight supply to an even tighter one.

Housing economists at the macro level are not concerned about the shift in power in Washington from Republican to Democrat. There are many pro’s and con’s that seem to equal out. On the positive side, the Democratic regime is expected to pull back from trade wars and tariffs which should bring supply costs down. This new administration is also expected to take a laxer position on immigration policies which should help to ease a tight labor market. But, expected tighter environmental policies will cause land development costs to go up. And the big unknown moving forward will be how business friendly the new administration will be especially given the slim majority the Democrats have in Congress.

So, the stage is now set for 2021. Low inventory is becoming more of an issue for motivated buyers who can’t find what they are looking for. Interest rates hit yet another all time low in December and experts believe they will remain low through 2022. Homebuilders are motivated to re supply the market, but they are dealing with high labor and materials costs and are having difficulty finding land. All in all, we are expecting another strong year for housing!

If you are a seller, the market needs your inventory. Your property will sell for more and will sell fast. Interest rates cannot go much lower, so the best time to sell might be now.

If you are a buyer, feel the urgency. Multiple offers are common on well-priced properties so if you find what you are looking for, move quickly!

As always, call me or one of our top-notch agents at The Litchfield Company or Lachicotte to discuss your real estate needs.

Will Davis

Vice President/ Broker in Charge

(843) 655-1547

WillD@thelitchfieldcompany.com

Waccamaw Neck

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Waccamaw Neck Real Estate Sales YTD December 2015 – 2020

Murrells Inlet

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Murrells Inlet Real Estate Sales YTD December 2015 – 2020

The Litchfield Company’s goal is to deliver the latest real estate information on a consistent basis. Our “Monthly Real Estate Market Update” email allows property owners to view firsthand the most recent changes in the ever-changing real estate market. You will be just as informed as potential purchasers, other agents, or the people down the street. All statistics in this report come from the Coastal Carolina Board of Realtors’ multiple listing service.

Please don’t ever hesitate to contact us to discuss anything that you deem is pertinent, or just to chat and catch up.

Will Davis, BIC

Area Covered by the Real Estate Market Update

This Market Update covers all residential real estate transactions in two large geographic areas on the South Strand. The Greater Murrells Inlet area includes a large geographic area from Brookgreen Gardens in the south, to Murrells Inlet in the east, to Hwy 544 on the northern border, and west to Bay Road and Hwy 707. The Waccamaw Neck area includes everything south of Brookgreen Gardens down to Debordieu.