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Good News in the Myrtle Beach Real Estate Market
by Jim Murray
I am not sure for how many more months I will be reminding everyone of the same fact. We continue to live in a period of historically low mortgage interest rates. To think that there was any excitement years ago over 6 and 7 % percent rates is unimaginable in this 4 and 4 ½ % market.
Prices continue to be very attractive and trends seem to be heating up in building, investing and refinancing. Nationwide, although existing home sales were down in September, they remain well above the overall numbers from a year ago. Areas of new construction are seeing some surges. Recently one local agent has contracted for seven homes to be built. J.D. McNair of Team McNair at Weichert Realtors points out that “You can build a brand new home the way you want it with your flooring, cabinets, paint colors etc.” McNair has found and commented that building a new home with your own options can be a lot easier sometimes than “spinning the roulette wheel” on short sale.
Now is clearly a great time for purchasing additional properties. This is not going unnoticed as investor buying reached 22 percent of all sales at the end of the summer nationwide. As you can imagine that figure is even more pronounced along the Grand Strand.
“The Myrtle Beach area remains a top tourism destination and with the price of ocean front condos today, the time has returned when an investor can purchase a condo with 25% down and the rental income will create a positive cash flow.” Says Todd A. Jemison, VP of Acquisitions for Carolina Holdings Group. This had not been the case in recent years. “A person today can buy an ocean front condo and within 8 to 10 years have it completely paid off using net rental income” Jemison said.
Although refinancing keeps getting seemingly more involved, it ultimately keeps evolving in favor of the consumer. The Federal Housing Financing Agency announced significant modifications to the Home Affordable Refinance Program, (HARP) aimed at making it easier for borrowers with negative equity in their homes. Adam Paskanik, Mortgage Specialist with Crescent Bank, is excited about these changes and points to some that could have a direct and immediate impact on borrowers. “With the change there would be an elimination of certain risk-based fees for some and for some borrowers who refinance into shorter-term loans; and there is a removal of the current 125 percent loan-to-value (LTV) ceiling for certain fixed-rate mortgages.” He sees opportunities for these changes to reach additional borrowers. “The program could make borrowers in condominiums eligible to use HARP and expand other eligibility guidelines as well”
On a quick note I read where straight cash transactions for purchases across the country is making up one third (1/3) of the total market. It is awesome to see that type of investment and transactional activity. While in cash transactions there is no lender requirement for title insurance I am taking this opportunity to remind buyers of the importance of title insurance and our recommendation for that product.
Jim Murray - Murray Law
www.murraylaw.info
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