2016 Real Estate in Review and 2017 Predictions for The Grand Strand
Curious about how our real estate market performed in 2016? Wondering if it will be a good time to buy or sell in 2017? Let's take a quick look:
Land on the Grand Strand took a serious hit after the boom in 2005, with prices and closings plummeting in 2007-08. In 2012, sales on land turned the corner with 2015-16 showing strong improvement towards pre-recession pricing. Towards the end of 2016, bull dozers were (and still are) working hard to clear land for new residential lots and commercial uses.
As far as residential housing activity, bank sales were down in 2016, which will hopefully lead to a strengthening in overall home prices and a decrease in distressed sales for 2017. 2016 new home sales, closings, and volume showed significant increases over past years.
2017 should show an increase in home prices, and competition will heat up. In 2016, a typical home stayed on the market an average of 52 days, a week faster than in 2015. 2017 will likely show an even faster turnaround time for resale homes. Sellers will maintain an edge over buyers in 2017. I have definitely seen it already in new home construction negotiations. Sellers can hold steady at their asking price rather than entertaining low ball offers from buyers.
Although we can expect wages to go up in 2017, the availability of starter home inventory in the low to median level income bracket will remain scarce. Buyers under the age of 36 currently make up half of the buyers market. Millineals will likely head for inland markets where housing is much more affordable.
Interest rates remain low, and are expected to increase slowly in 2017. The National Association of Realtors predicts a 30 year fixed rate loan to climb to 4.6% interest by the end of 2017. Deals are still tricky to close, with the lending process remaining rigorous and complex.
Overall, even considering Hurricane Matthew passing through in 2016 and the raging political controversy going on in Washington already in 2017, the outlook is good. It's a great time to buy and sell at the beach!
Contact me today at 843-424-0995 or email@example.com if you or someone you now is interested in more information on buying or selling real estate in Myrtle Beach or the surrounding areas. Also, keep in mind that KingOne Properties has offices to serve you in Charleston, Fort Lauderdale, and Toronto.