Hello this is Greg Harrelson from Myrtle Beach, South Carolina with Century 21 the Harrelson Group. And I just wanted to kind of connect with you again today. I’ve been getting a lot of emails and a tremendous amount of phone calls from people that are considering the possibility of selling and they’re saying “hey look I hear that the market in Myrtle Beach is a little bit more active.” I totally agree with that. There’s no question about it. I would say for myself and other people in the company we’re probably busier right now than we’ve been in the last couple of years or at least for the comparable season. If you take this season compared to last season and the ones maybe two the three years prior. We are busier than we have been in all those years.
So yes the market is more active. It’s absolutely accurate and I thought I would share with you maybe a few shifts that we’re seeing and give you an idea of what I mean. So the conversation today is about the market shifting. And here’s a few market shifts that I wanted to talk with you about.
Showings Increase Leads to Shift in Sales
Number one. One area that we’re seeing a massive shift in the market is the amount of showings. The showing volume on our listings hasn’t doubled but it’s probably increased by 30 to 35 percent. So ultimately we normally see a shift in showings then that typically leads to a shift in offers and then ultimately a shift in the number of sales. As we see showings increasing we anticipate the offers are going to increase. We’re seeing that already but ultimately we believe in the future in the next couple of months we’ll see some significant increases in the amount of closings that are going to take place in our area. So that’s a good sign.
Property Supply Decline… but it’s Good News
Another area of the market that is shifting is due to all the increased showings and sales. The increased showings and sales are causing a decline in the supply. Now that is good news. Over saturation of properties for sale always causes the properties to go down in value. This brings us to the simple rule of supply and demand. If supply is much greater than demand then we see prices go down. If demand is significantly higher than supply then we see prices go up. Currently supply is higher than demand and while I can’t say that prices are necessarily going up, I can communicate that supply is on the decrease. That’s a very good sign and I’ll share with you in just a moment what that might mean for us in the future.
Multiple Offers Hitting the Table
The third shift that I’ll touch on is multiple offers. Just yesterday alone I was negotiating two contracts on one of my listings and in both cases there were multiple offers. I had two offers on the same property. Here’s the great news. Neither one of them was a short sale and neither one of them was a foreclosure. So we are actually receiving multiple offers on our listings. I would call that a shift. Last year if we dealt with multiple offers typically it was on a foreclosure listing. Right now we’re seeing it on some of our traditional listings. Of course that has a lot to do with our aggressive marketing approach and how we create demand for our properties. But I am hearing across the market and across the Myrtle Beach MLS with other agents that they’re experiencing similar results too.
Real Estate Construction Shifting
The fourth market shift that I think it’s worth noting is a shift in building. Not on the oceanfront. We don’t see skyscrapers going up right this second. We don’t see cranes pulling in so they can build new high rise buildings, but what we’re starting to see is builders, spec builders and national builders moving back to start building homes again. Just in one community alone near the grand dunes where maybe two years ago they only had three or four properties being built there’s approximately 25 homes being built. Now while that adds supply to the market, which doesn’t exactly help our argument of decreasing supply, it does show us is that there’s some confidence in the market.
Many people think that we must be close to the bottom, already at the bottom, or maybe we’re stabilizing and that’s why these builders are willing to go ahead and take the risk and start building some homes anticipating that they’re going to be able to sell them. Before, they weren’t building because they were afraid that they would have to sit on them. I think that’s a shift worth noting that kind of gives us an indication that we may see our market stabilize. Personally I can only say this as an opinion, because there really is no fact that we can go by. But I believe the these four shifts, increased showings, declining supply, multiple offers and the fact that we’re seeing more building shows us that the real estate market is starting to stabilize.
That is my prediction. That is my opinion. And as a business man, a buyer of real estate and an investor, I’m actually building my business plan and my strategy from a personal investment strategy. I’m building it based on the idea that the market is stabilizing.
Now where do we go from here?
Typically when a market goes down as sharply as it does or as it did in the last 5 to 7 years, when it stabilizes it means the market doesn’t go down anymore. It doesn’t necessarily mean the market is going back up. Markets don’t typically go down and up creating a V shaped curve. Typically markets go down, stabilize, and then go up. So we have already seen it go down, now as we enter the stabilization of the market the question is how long will that market stay in stabilization? I do not know. It’s very tough to predict and question no one truly knows. But I think it’s a positive sign that we have actually stopped going down.
So if you ever have any questions regarding what the market is doing I would be happy to answer them. If you do need the services of a real estate professional I’d love to earn your business in the future. As you can see I keep my finger on the pulse of this market. I understand the market very well. I observe it often. So I can help you all obtain your goals.
Once again my name is Greg Harrelson Century 21 the Harrelson group. I’m glad to be able to announce that we are stabilizing as a market or becoming a normal market again and I’d love to help you soon.