Realestate quality, VS Cost. (Myrtle Beach, Murrells Inlet: appointed, for sale, real estate market)

[Frozen]

Hey group

We decided a bit ago to purchase a second home in the Myrtle Beach area. wait before some of you begin, yes I read about the crime, and about the jobs, and how busy it gets 14 months out of the year, I'm not trying to be an idiot, but I know someone is gonna turn this into a negative about the area!

What I noticed is that the price of homes VS the actual quality of the building material used is still very high, even with the drops in the recent market.

Small homes that don't have the added cost of a basement, with white vinyl laminated particle board cabinets, painted plastic mock wood baseboard, and vinyl siding, are bringing allot of money for what is really in them, the lots were all small, so the cost can be coming from land, either the developers made a killing, cost of material down south? or cost of labor? I cant see that though.


We spent many days looking at property in the Carolina Forest area and all around, there are thousands of properties on the market, I'm wondering are people moving to the Myrtle beach area that fast, will most of this turn over in a year or so, or is there about 5 years worth of real estate on the market?

[PawleysDude]

A good friend in real estate has a couple assistants who spend much of their time keeping in touch with a long list of wannabe buyers, who are ready to move as soon as they can sell their current homes in the NE or midwest. If you can predict when those housing markets will turnaround, you'll know when the MB migration will resume. A major chunk of newcomers to this area are retirees. When you consider the size of the babyboomer generation and where they are in relation to retirement, it's not hard to figure out how big that potential market really is.

What you said about housing in this area is pretty much true, with a couple exceptions. Basements aren't really an option in most of the Grand Strand, due to water tables. The closest thing we have to basements are ground level rooms below raised homes. Regardless of how small lots are, they are responsible for much of the cost. There's not a lot of undeveloped land remaining, and when it goes on the market in normal times, developers pay dearly for it. The final buyers pay even more. As you get close to the coast, lots on the market are now described in square feet rather than fractions of acres. I figure about one more healthy housing market and we'll have a community celebration, commemorating the bulldozing of the last tree still standing.

There are also very good developers in the area who build excellent, high-end homes. Just be prepared to pay for them. The rest of the developers are out to make a quick buck. They know they can build cheap homes down here in paradise, and folks will still buy them. If the first buyer doesn't want it, there's a long line headin' down I-95 who will. Location, location, location.....

[southernbychoice14]

One thing that affects the price are there are very stringent guidelines and products that must be used on houses to meet standards that are not on a house built inland.

[Frozen]

@ PawleysDude


Not sure how long the market will take either, we live in a newer subdivision that has about 150 homes in it, there all about 6 year old homes, this summer only 3 went on the market, of the 3 one sold for 40k under what the people had in it, one sat so long its now in forclosure, the 3rd says accepted offer, but they priced it 20k under what they had in it from the start, that 40k loss is not including the sales commission at 6% of the total, so more like a 55k loss.

I'm aware of the water table, and why basements aren't an option, my point was that even with the savings of not having a basement, the prices of the homes should have been 20 to 30k lower for the square footage, but maybe your right, that the lots are way more money, so your back to square one.

@ southernbychoice

I'm not sure as to the material adding that much cost, Ive heard of hurricane bracing, and such, but not sure that the cost would be 20% higher than that of a home lets say in Indiana, of the same material, and square footage. but again that's why I'm asking so I can get a better idea of whats going on.

Thank you both for your input!

Frozen

[Florida15]

Originally Posted by Frozen

Hey group

We decided a bit ago to purchase a second home in the Myrtle Beach area. wait before some of you begin, yes I read about the crime, and about the jobs, and how busy it gets 14 months out of the year, I'm not trying to be an idiot, but I know someone is gonna turn this into a negative about the area!

What I noticed is that the price of homes VS the actual quality of the building material used is still very high, even with the drops in the recent market.

Small homes that don't have the added cost of a basement, with white vinyl laminated particle board cabinets, painted plastic mock wood baseboard, and vinyl siding, are bringing allot of money for what is really in them, the lots were all small, so the cost can be coming from land, either the developers made a killing, cost of material down south? or cost of labor? I cant see that though.


We spent many days looking at property in the Carolina Forest area and all around, there are thousands of properties on the market, I'm wondering are people moving to the Myrtle beach area that fast, will most of this turn over in a year or so, or is there about 5 years worth of real estate on the market?

Know what you mean. We just looked at some homes in Murrells Inlet and were VERY disappointed in the quality. They were a lot different in person than they were on the internet. We're in Wilmington,N.C. right now(relocated here six years ago from Florida) and the quality here and in Florida is much better or at least it was. Maybe it's changed everywhere due to the recession.??????

[golfball]

The appreciation of real estate property in Myrtle Beach has been much better than other areas of our country. The grand strand has been able to hold much of its property value during this recession.

[harpat]

Now is a great time to buy a "rental" property. I am the unfortunate one and bought 4 years ago, today - you can purchase a unit just like mine for $110,000 LESS than what I paid. Am I sick? Well, yes obviously, however, this can't last forever and if you can afford it right now - go for it. You will make a very nice profit when everything turns around.

[Marylandsailor]

Here are some actual facts that I know for sure. The rental house I'm living at is in longs about 10 miles inland from MB up Hwy 22 on Hwy 90. 3 bed, two bath, 2 car garage on a small lot. The owner bought this house in 2007 for 185K. Right now, there is a house around the corner, same house with features a little better (has screened back porch and stucco siding in front) going for 124,900 and has been on the market for several months. Another one: My friend bought a condo just up the road from Carolina Forest, in december 2006. She paid 155K for a 2bd 2ba, really nice condo, nice location. Another condo in the same complex just sold (forclosure) for 87K. Same layout. She's been unemployed and looking for work for several months. What I am saying is there are 15,000 properties for sale in the MB area, that includes condos SF houses, mobiles, lots, land. Prices are going down, down, down. Prices have been artifically held up by the $8000 federal tax credit and the federal reserve buying up mortgages. That's coming to an end soon. It's all smoke and mirrors. More and more properties are being forclosed but banks aren't puting all of them on the market as not to furthur drive prices down. The market has only one way to go and that's down. Wait another 6 months to a year at least before you buy.

[baylovers]

I am refinancing at the moment and had an appraisal done last week. In early 2006 our house was on market at $465k & we paid $450k. In hindsight, I should have went lower but everything was selling quickly & had already lost a couple of house bids. The house just appraised at $392k... about a 13% decrease. Although it is a little disheartening to be under the purchase price, it is way better than the 20-30% corrections some other markets have experienced. In my experience & opinion the coast holds value much better.

[NCBND]

I follow the MB real estate market closely and am in MB right now on vacation. I've spent the last few days here looking at property as I would like to live in MB part of the year in retirement. This market is still deteriorating and it has not yet reached its bottom despite assertions to the contrary on this forum and from the realtor puffery that you read in the papers. There are just too many foreclosures and they are still coming onto the MLS every day. Prices here won't bottom out until the foreclosures stop coming. If that weren't enough, being a beach/resort market MB has now entered its dead season for real estate sales. If you want to buy here then I'd counsel waiting for a while. Those who fancied themselves vultures and dashed in here to buy six months ago are probably giving themselves a kicking,