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Neo

Condo boom finally coming to an end?

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In looking at the Charlotte Observer this morning I noticed an article on the downfall of the condo boom in Myrtle Beach. Apparently there are around 10k condos along the Grand Strand, a number which I thought would have been much lower, but it does state that the number is several thousand more than a year ago. Unfortunately the article mentions that sales of new and existing units have fallen by 37% from last year.

It seems that the market in Myrtle Beach has greatly been overestimated as has been done in several other cities. Do you see this as a good thing by possibly driving down prices in the area? Is this just tied to the real estate market or is Myrtle Beach as a whole on a downward spiral as folks vacate to less populated/built-up areas?

Article: http://www.charlotte.com/mld/charlotte/16282832.htm

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I'm inclined to think that this is just part of the natural market.

MB is just over built with hundreds(or thousands?) of new units u/c. But construction in MB is not just towers on the ocean- there are lots of relatively dense/mixed use proejcts going on around the city like the AFB project and the Myrtle Square Mall site. I think this type of project will keep selling well as they are much less expensive plus you have more space, and still 5-10 minutes from the beach. Its also part of a market that hasn't been as popular until recently. These urban villages will definitely become more popular in the future. And as for ocean front towers- those will fill up and more will be built. I'm not worried ;)

I don't forsee MB slowing down in the long run, so once the demand for the current wave of construction is met it will pick up again.

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I agree with Spartan that the inventory numbers you see are just part of a correction. This is not a housing crash as has been discussed so much in the media, but rather just a natural correction to a market that has been on fire for the past couple of years. Specifically you have "investors" who have unrealistic expectations on the value of their property that are trying to sell for top dollar. The market is simply saying that it will not support those premium prices.

What the media fails to report is that there is still a good volume of real estate transactions going on every day and every week for existing condo units that have been priced correctly. New condo sales remain strong, but just not at the break neck pace of selling out in days, as had been the case a year or two ago.

The slowdown is a healthy thing for the market that will provide a more consistent long term growth potential for the Grand Strand.

Pete

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After making my previous post, I saw this in the Sun News (Myrtle Baech), dated Dec. 20, 2006.

Some brokers report increased real estate sales

Amid a slower, somewhat stagnant real estate market, some bright spots have emerged.

Some real estate brokers are reporting an increase in sales in November from October, and some builders are saying they've noticed an upswing of calls.

Statistics from the Multiple Listing Service don't show an overall sales increase from October to November. But with several good signs emerging - inventory is dropping, buyers are calling - real estate agents expect that buyers will return to the market in 2007.

For more of the story, go to: http://www.myrtlebeachonline.com/mld/myrtl...ss/16279765.htm

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I dont really see it slowing down like some people think it will. That place will continue to boom condos or not!

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60 million baby boomers will be retiring in the next 20 years. This is just a breathing spell, demographics insure continued building growth for a long time.

In looking at the Charlotte Observer this morning I noticed an article on the downfall of the condo boom in Myrtle Beach. Apparently there are around 10k condos along the Grand Strand, a number which I thought would have been much lower, but it does state that the number is several thousand more than a year ago. Unfortunately the article mentions that sales of new and existing units have fallen by 37% from last year.

It seems that the market in Myrtle Beach has greatly been overestimated as has been done in several other cities. Do you see this as a good thing by possibly driving down prices in the area? Is this just tied to the real estate market or is Myrtle Beach as a whole on a downward spiral as folks vacate to less populated/built-up areas?

Article: http://www.charlotte.com/mld/charlotte/16282832.htm

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I think it's a good thing, since I'm thinking of buying one. Everything is WAY overpriced right now. If I could find the right condo at the right price, I'd buy it in a heartbeat.

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