Current Myths About the Housing Market

 

9 MYTHS ABOUT THE CURRENT HOUSING MARKET

 Myth 1 - High-to-low home price declines have been about 20%.  Nope.

The measurement of home price declines can be misleading.  It depends on which homes in which markets are being measured. There are some indexes that indicate home prices are down 20%.  Theses indexes are heavily weighed toward homes with sub-prime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general. Both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. If you're selling your home, the best thing to do is price your home right.

Myth 2 - The smaller number of new homes under construction indicates a dismal outlook for the housing market. Incorrect.

The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. With many new homes completed but not sold, you can find great deals.

Myth 3 - When the housing market recovers, home price growth will be only 4 to 6% per year 

The price growth of up to 6% can easily turn into 20 to 30%.  Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return.  On average, home price appreciation has been about 1 to 2 percentage points higher than consumer price inflation, which translates to up to 6% per year. This growth rate cannot be compared to a rate of return like the stock market, being that most people do not buy a home for all cash.  Instead they make a cash down payment & borrow the rest. The leverage this borrowing creates can greatly impact returns. Get the fundamentals right when investing in real estate.

Myth 4 - Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Not True.

The first wave baby boomers has reached 60 years of age and the bulk of that generation will soon go into retirement.  Contrary to the belief that these boomers will trade down, many are keeping their current homes or moving to properties of the same size or larger. In the future, if the boomers do decide to sell their larger homes, then the rapidly growing U.S. population should absorb the supply of existing homes on the market.

Myth 5 - The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles.

It's possible that taxpayers may have to cover some losses OR that the government takeover will result in no loss of taxpayer dollars. If taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. The "bailout plan" is meant for homeowners facing foreclosure.  If you would like to know more about the Hope for Homeowners Plan, contact me at your convenience, at (843)907-8787.

Myth 6 - The Federal Reserve controls mortgage rates. Wrong.

What the Fed sets is a short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings, credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. Today's rates aren't bad compared to the 10% we saw in the early '90s and 17% in the '80s.

Myth 7 - It's the wrong time to buy. Wrong.

All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer. Very low interest rates and a surplus of inventory give buyers an edge. For someone with a long outlook, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation.  Keep in mind that is also not the right time to buy for everyone.  Even when good buying opportunities are presented, someone who is not financially ready shouldn't be forced into joining the rank of homeowners.  The decision to become a homeowner requires sacrifices, and homeowners who lose their homes to foreclosure is not good for anyone.  Take a good look at your financial status to see if you're ready to buy or move up to a home of your choice.

Myth 8 - It's a terrible time to sell. Wrong.  

A seller can get an offer if the property is priced right.   In our local market, home sales are steadily increasing.   For those looking to trade-up, selling low on an existing home is offset by buying the new move-up home at a lower price. In turn, the price appreciation on the trade-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

Myth 9 - More homes are being sold by owners, and real estate agents are becoming obsolete. Nope.

The share of home sellers who choose to go it alone when selling their home has actually decreased to about 12% today. On average, only 4 in 10 say they would sell their next home without the assistance of a real estate professional.

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39 Photos 3601 N Ocean Blvd. #1232 North Myrtle Beach, SC 29582

3601 N Ocean Blvd. #1232
North Myrtle Beach, SC 29582
Prince Resort - Phase II - Cherr
Condo/townhouse

MLS# 1909054 / Active
2 br, 2 ba, 1250 Sqft, HOA: $1,038 Monthly
n/a Floor, Unit: 1232, Loc: Ocean View, End Unit

Beautiful 2BR/2BA South end corner unit with amazing panoramic views to enjoy the sunrise and sunsets. This unit features 2 double beds, king bed ... 

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$184,900
Provided courtesy of The Hoffman Group
40 Photos 761 Devon Estate Ave. Myrtle Beach, SC 29588

761 Devon Estate Ave.
Myrtle Beach, SC 29588
Windsor Plantation - Devonshire
Residential

MLS# 1918211 / Active
4 br, 3 ba, 2900 Sqft, HOA: $101 Monthly
Type: Detached, Year Built: 2015

Located in the highly sought-after Devonshire at Windsor Plantation community, this distinctive 4-bedroom, 3-bathroom home is situated on a peacefu... 

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$295,000
Provided courtesy of RE/MAX First Choice
40 Photos 4309 Thrasher Ct. North Myrtle Beach, SC 29582

4309 Thrasher Ct.
North Myrtle Beach, SC 29582
The Dye Estates
Residential

MLS# 1918213 / Active
3 br, 2 ba, 1 ½ ba, 4200 Sqft, HOA: $295 Monthly
Type: Detached, Year Built: 2013

GORGEOUS BUILT HOME IN THE DYE ESTATES OVER LOOKING THE PETE DYE GOLF COURSE 7TH TEE BOX. THIS CUSTOM BUILT HOME IS 0.63 ACREAGE NO OTHER LOT THI... 

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$829,900
Provided courtesy of Century 21 Barefoot Realty
27 Photos Lot 14 Ocean Park Loop Georgetown, SC 29440

Lot 14 Ocean Park Loop
Georgetown, SC 29440
Debordieu Colony
Land

MLS# 1918208 / Active
0.20 Acres, 1 Lot(s), HOA: $233 Monthly
Type: Residential Lot, Est. Lot Size: n/a

DeBordieu Colony - Lot 14 Ocean Park Loop is about 200 yards from the north end of DeBordieu Beach. Because Lot 14 is adjacent to the Ocean Park cr... 

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$399,000
Provided courtesy of Keller Williams MB S. Realty
15 Photos 560 Myrtle Ave. Pawleys Island, SC 29585

560 Myrtle Ave.
Pawleys Island, SC 29585
Pawleys Island Beach
Land

MLS# 1918199 / Active
0.20 Acres, n/a Lot(s)
Type: Residential Lot, Est. Lot Size: n/a

Here is a rare opportunity to own in the Pawleys Island's historic district. Build your customized home showcasing both oceanfront and Pawley's Cre... 

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$1,750,000
Provided courtesy of Peace Sotheby's Intl Realty GT
20 Photos 2001 S Ocean Blvd. #Villas 304 Myrtle Beach, SC 29577

2001 S Ocean Blvd. #Villas 304
Myrtle Beach, SC 29577
Bluewater Resort
Condo/townhouse

MLS# 1918200 / Active
1 br, 1 ba, 800 Sqft, HOA: $434 Monthly
n/a Floor, Unit: Villas 304, Loc: n/a

***NEW FLOORING***This Beautifully decorated and modernized unit at the Bluewater Resort is being sold fully furnished and decorated, everything to... 

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$86,500
Provided courtesy of BFM Real Estate Services LLC
28 Photos 8641 South Bridge Dr. #E Surfside Beach, SC 29575

8641 South Bridge Dr. #E
Surfside Beach, SC 29575
SOUTHBRIDGE
Condo/townhouse

MLS# 1918198 / Active
2 br, 2 ba, 1150 Sqft, HOA: $239 Monthly
n/a Floor, Unit: E, Loc: Lake/Pond View

Start packing and get ready to move in! This stunning, immaculate total turn key 2 bedroom, 2 bath, second floor end unit is in the South Bridge co... 

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$97,900
Provided courtesy of Beach & Forest Realty
40 Photos 6244 Catalina Dr. #912 North Myrtle Beach, SC 29582

6244 Catalina Dr. #912
North Myrtle Beach, SC 29582
Clearwater Bay - Barefoot Resort
Condo/townhouse

MLS# 1918204 / Active
4 br, 4 ba, 2600 Sqft, HOA: $441 Monthly
n/a Floor, Unit: 912, Loc: n/a

Must see this 4br/4ba Townhome style condo in Tanglewood at Barefoot Golf Resort! This spacious unit features new HVAC in 2018, open floorplan w/ ... 

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$318,900
Provided courtesy of Century 21 The Harrelson Group
27 Photos 5815 Longleaf Dr. Myrtle Beach, SC 29577

5815 Longleaf Dr.
Myrtle Beach, SC 29577
Pine Lakes
Residential

MLS# 1918203 / Active
5 br, 4 ba, 1 ½ ba, 5100 Sqft
Type: Detached, Year Built: 1964

Located in the beautiful sought after neighborhood of Pine Lakes, this home sits on an oversized lot and features 5 bedrooms and 4.5 baths. With lo... 

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$435,000
Provided courtesy of Sloan Realty Group
19 Photos 2100 Glamis Ct. Myrtle Beach, SC 29588

2100 Glamis Ct.
Myrtle Beach, SC 29588
Island Green
Residential

MLS# 1918205 / Active
2 br, 2 ba, 1700 Sqft, HOA: $95 Monthly
Type: Detached, Year Built: 2004

Lovely 2BR/2BA home on corner lot. Large Master Bedroom with walk-in closet, Master bath features Jacuzzi Tub/Shower combination, second bedroom w... 

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$179,900
Provided courtesy of Sellers Choice Real Estate
28 Photos 448 Hunley Ln. Myrtle Beach, SC 29579

448 Hunley Ln.
Myrtle Beach, SC 29579
Arrowhead
Residential

MLS# 1918192 / Active
4 br, 3 ba, 1 ½ ba, 2200 Sqft, HOA: $44 Monthly
Type: Detached, Year Built: 2007

 

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$294,000
Provided courtesy of BHHS Myrtle Beach Real Estate
40 Photos 419 13th Ave. N Surfside Beach, SC 29575

419 13th Ave. N
Surfside Beach, SC 29575
Dogwood Lake
Residential

MLS# 1918191 / Active
3 br, 2 ba, 2700 Sqft
Type: Detached, Year Built: 2019

Beautiful new 3 bedroom, 2 bath home with large (15x19) Bonus Room and walk-in attic. Built by Bill Clark Homes. Never occupied. Large Master Bedro... 

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$599,000
Reduced -$26,000
Provided courtesy of RE/MAX Ocean Forest
40 Photos 6095 Catalina Dr. #2016 North Myrtle Beach, SC 29582

6095 Catalina Dr. #2016
North Myrtle Beach, SC 29582
TANGLEWOOD AT BAREFOOT RESORT
Condo/townhouse

MLS# 1918180 / Active
3 br, 2 ba, 1 ½ ba, 2300 Sqft, HOA: $380 Monthly
n/a Floor, Unit: 2016, Loc: Golf Course View

Must see this immaculate 3br/2.5ba End unit, furnished Townhome w/ 2 car garage on the 13th Tee of the Norman Course in Tanglewood at Barefoot Reso... 

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$277,900
Provided courtesy of Century 21 The Harrelson Group
6 Photos 1102 Dinger Dr. #1102 Myrtle Beach, SC 29588

1102 Dinger Dr. #1102
Myrtle Beach, SC 29588
The Diamond
Condo/townhouse

MLS# 1817458 / Active
3 br, 2 ba, 1 ½ ba, 1550 Sqft, HOA: $145 Monthly
n/a Floor, Unit: 1102, Loc: n/a

Another Building NOW Released.This is the Stream Unit. 3Br 2 1/2 Ba. Kitchen, Dining Room, Family Rm and Master on first floor. Kitchen leads outs... 

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$157,907
Provided courtesy of Hannon Group
6 Photos 1110 Dinger Dr. #1110 Myrtle Beach, SC 29588

1110 Dinger Dr. #1110
Myrtle Beach, SC 29588
The Diamond
Condo/townhouse

MLS# 1817456 / Active
3 br, 2 ba, 1 ½ ba, 1550 Sqft, HOA: $145 Monthly
n/a Floor, Unit: 1110, Loc: n/a

Another Building NOW Released.This is the Stream Unit. 3Br 2 1/2 Ba. Kitchen, Dining Room, Family Rm and Master on first floor. Kitchen leads outs... 

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$159,755
Provided courtesy of Hannon Group
6 Photos 1054 Dinger Dr. #1054 Myrtle Beach, SC 29588

1054 Dinger Dr. #1054
Myrtle Beach, SC 29588
The Diamond
Condo/townhouse

MLS# 1804613 / Active
3 br, 2 ba, 1 ½ ba, 1550 Sqft, HOA: $145 Monthly
n/a Floor, Unit: 1054, Loc: n/a

IMMEDIATE DELIVERY. This is the Stream Unit. 3Br 2 1/2 Ba. Kitchen, Dining Room, Family Rm and Master on first floor. Kitchen leads outside to the... 

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$159,755
Provided courtesy of Hannon Group
19 Photos 401 N N Oak St. Myrtle Beach, SC 29577

401 N N Oak St.
Myrtle Beach, SC 29577
Not within a Subdivision
Multi-Family

MLS# 1918175 / Active
n/a Sqft, 2 Units, Year Built: 1945
Type: Duplex

This two story duplex is centrally located in downtown Myrtle Beach. The duplex contains (2) 2 Bedroom and 1 bath units. Each unit has 900 heated s... 

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$195,000
Provided courtesy of Blue Skies Property Management
38 Photos 1917 Kay Ln. Surfside Beach, SC 29575

1917 Kay Ln.
Surfside Beach, SC 29575
Deerfield
Residential

MLS# 1918186 / Active
3 br, 2 ba, 1 ½ ba, 3100 Sqft, HOA: $77 Monthly
Type: Detached, Year Built: 1985

In cul-de-sac on fingerlake - well maintained home with mature trees and landscaping. Formal living room with gas log fireplace and built-in cabine... 

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$254,900
Provided courtesy of RE/MAX Ocean Forest
19 Photos 2100 Sea Mountain Hwy. #602 North Myrtle Beach, SC 29582

2100 Sea Mountain Hwy. #602
North Myrtle Beach, SC 29582
Harbourgate Resort & Marina
Condo/townhouse

MLS# 1918171 / Active
2 br, 2 ba, 1000 Sqft, HOA: $552 Monthly
n/a Floor, Unit: 602, Loc: Waterway View

What a view! This top floor two bedroom two bath condo looks out over the Harbourgate Marina to the Intracoastal Waterway. Balcony access from the ... 

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$125,900
Provided courtesy of CENTURY 21 Thomas
35 Photos 4960 Windsor Green Way #301 Myrtle Beach, SC 29579

4960 Windsor Green Way #301
Myrtle Beach, SC 29579
WINDSOR GREEN
Condo/townhouse

MLS# 1918172 / Active
2 br, 2 ba, 1300 Sqft, HOA: $209 Monthly
n/a Floor, Unit: 301, Loc: Golf Course View, Lake/Pond View, End Unit

Spacious 2 bedroom/2 full bath END UNIT with VAULTED CEILINGS has wonderful VIEWS of GOLF COURSE & LAKE! Master bedroom features a walk in closet w... 

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$116,500
Provided courtesy of CB Chicora Advantage Surfside
7 Photos 1315 Carolina Wren Rd. Murrells Inlet, SC 29576

1315 Carolina Wren Rd.
Murrells Inlet, SC 29576
Woodlake Village
Residential

MLS# 1918174 / Active
3 br, 2 ba, 2000 Sqft, HOA: $39 Monthly
Type: Detached, Year Built: 1988

Woodlake Village is an Active Adult Community, Murrells Inlet. One level living with outdoor spaces for quiet time or visiting with friends. Covere... 

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$178,250
Provided courtesy of Realty ONE Group DocksideSouth

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