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.

Modify Search Criteria
Displaying results 1-21 of 6474
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 ... 

More Details

$184,900
Provided courtesy of The Hoffman Group
6 Photos 1016 N 2nd Ave. N North Myrtle Beach, SC 29582

1016 N 2nd Ave. N
North Myrtle Beach, SC 29582
Commercial/industrial

MLS# 1920656 / Active
n/a Sqft, Type: Office, Lot Size n/a
# Units: 1, Present Use: Office Building

This is a beautiful 3 story office building with Class A Office Space for lease. This building is 36,000 square feet on 1.77 acres and is located ... 

More Details

$550
Provided courtesy of Tideland Commercial
34 Photos 901 West Port Dr. #1707 North Myrtle Beach, SC 29582

901 West Port Dr. #1707
North Myrtle Beach, SC 29582
Carolina Keyes
Condo/townhouse

MLS# 1921313 / Active
2 br, 2 ba, 1000 Sqft, HOA: $257 Monthly
n/a Floor, Unit: 1707, Loc: n/a

THIS IS IT, grab your PIECE OF PARADISE in this prime location! Check out this hidden little gem that has everything you could ask for and MORE!! T... 

More Details

$159,500
Provided courtesy of CB Chicora Advantage NMB
34 Photos 3017 Barre Ct. Myrtle Beach, SC 29579

3017 Barre Ct.
Myrtle Beach, SC 29579
Waterway Palms Plantation
Residential

MLS# 1922289 / Active
5 br, 3 ba, 1 ½ ba, 4500 Sqft, HOA: $107 Monthly
Type: Detached, Year Built: 2017

Beautiful 5 bed 3.5 bath custom home with pond view in Waterway Palms. This home features upgrades that include tray ceilings, crown molding, grani... 

More Details

$449,999
Provided courtesy of Welcome Home Realty - MB
3 Photos TBD Causey St. Myrtle Beach, SC 29577

TBD Causey St.
Myrtle Beach, SC 29577
Not within a Subdivision
Land

MLS# 1922331 / Active
0.78 Acres, n/a Lot(s)
Type: Industrial Lot, Est. Lot Size: n/a

Light Industrial lot conveniently located in Myrtle Beach. Land across the street is being developed now. Additional lot available as well. See ... 

More Details

$99,650
Provided courtesy of Brown & Moore
18 Photos 2207 S Ocean Blvd. #1518 Myrtle Beach, SC 29577

2207 S Ocean Blvd. #1518
Myrtle Beach, SC 29577
Sandcastle South
Condo/townhouse

MLS# 1922326 / Active
1 br, 1 ba, 600 Sqft, HOA: $626 Monthly
n/a Floor, Unit: 1518, Loc: Ocean Front

WOW! WOW! and more WOW! This is a must see condo! New 46’ TV, New flooring, Fresh Paint, some New Furnishing, like a premium sofa and pictures... 

More Details

$86,000
Provided courtesy of Beach & Forest Realty
19 Photos 1930 Bent Grass Dr. #40Q Surfside Beach, SC 29575

1930 Bent Grass Dr. #40Q
Surfside Beach, SC 29575
Golf Colony At Deerfield
Condo/townhouse

MLS# 1922328 / Active
1 br, 1 ba, 1 ½ ba, 950 Sqft, HOA: $246 Monthly
n/a Floor, Unit: 40Q, Loc: n/a

Beautiful move in ready, furnished condo in Golf Colony XII. The Colony has a pool and grills to cook out. Spacious balcony with washer and dryer. ... 

More Details

$73,450
Provided courtesy of Myrtle Beach Realty LLC
16 Photos 3915 Flagg St. Murrells Inlet, SC 29576

3915 Flagg St.
Murrells Inlet, SC 29576
Inlet Retreat
Residential

MLS# 1922327 / Active
3 br, 2 ba, 1 ½ ba, 3500 Sqft
Type: Detached, Year Built: 2019

Ready to Move In and NO HOA!! Inlet Retreat is a GREAT neighborhood nestled in the Moss draped oaks of Murrells Inlet, SC. A wonderful location for... 

More Details

$389,900
Provided courtesy of The Beverly Group
30 Photos 4501 Poinsett St. North Myrtle Beach, SC 29582

4501 Poinsett St.
North Myrtle Beach, SC 29582
Not within a Subdivision
Residential

MLS# 1922329 / Active
3 br, 1 ba, 1 ½ ba, 1300 Sqft
Type: Detached, Year Built: 1971

You've heard it's all about ""location, location, location!"" Living in this home offers all of that. From your home you're only 1/2 mile from t... 

More Details

$165,000
Provided courtesy of Cohen & Associates Real Estate
22 Photos 1851 Low Country Ln. #Unit B Myrtle Beach, SC 29577

1851 Low Country Ln. #Unit B
Myrtle Beach, SC 29577
Pine Island Townhomes
Condo/townhouse

MLS# 1922325 / Active
3 br, 2 ba, 1 ½ ba, 1500 Sqft, HOA: $210 Monthly
n/a Floor, Unit: Unit B, Loc: n/a

Ideal location! 3 Bedroom, 2.5 Bathroom, 2 Story Town House, only 2 years old, located in the heart of Myrtle Beach just minutes from Beach, Coasta... 

More Details

$155,000
Provided courtesy of Salt Realty
27 Photos Lot 1A Wallace Pate Dr. Georgetown, SC 29440

Lot 1A Wallace Pate Dr.
Georgetown, SC 29440
Debordieu Colony
Land

MLS# 1922317 / Active
5.00 Acres, 1 Lot(s), HOA: $233 Monthly
Type: Residential Lot, Est. Lot Size: n/a

Lake Community Estate Opportunity- Rarely does an opportunity like this present itself for the discerning purchaser. Within DeBordieu Colony, one o... 

More Details

$399,000
Provided courtesy of Peace Sotheby's Intl Realty GT
4 Photos 9904 N Kings Hwy. Myrtle Beach, SC 29577

9904 N Kings Hwy.
Myrtle Beach, SC 29577
Commercial/industrial

MLS# 1922312 / Active
n/a Sqft, Type: Retail, Lot Size n/a
# Units: 1, Present Use: Retail/Wholesale

Shops at the Hidden Village-Unit G-900 SF Retail/Office Space-For Lease Myrtle Beach, SC OFFERED FOR LEASE: Shops at Hidden Village is near the ar... 

More Details

$1,000
Provided courtesy of Keystone Realty MB, LLC
40 Photos 362 Babylon Pine Dr. Myrtle Beach, SC 29579

362 Babylon Pine Dr.
Myrtle Beach, SC 29579
Sago Plantation At Legends
Residential

MLS# 1922307 / Active
5 br, 2 ba, 1 ½ ba, 3700 Sqft, HOA: $97 Monthly
Type: Detached, Year Built: 2015

Magnificent 5 bedroom 2.5 bathroom home in the gated community of Sago Plantation at Legends! The open concept main floor is perfect for entertaini... 

More Details

$405,000
Provided courtesy of Keller Williams Trembley Group
20 Photos 7719 Sounders Trail Myrtle Beach, SC 29588

7719 Sounders Trail
Myrtle Beach, SC 29588
Not within a Subdivision
Residential

MLS# 1922308 / Active
5 br, 4 ba, 5300 Sqft
Type: Detached, Year Built: 1983

If your looking for a few acres in the country but still want the beach and the entertainment this is for you. This 5 bedroom 4 bath home is on a ... 

More Details

$399,900
Provided courtesy of Myrtle Beach Real Estate LLC
33 Photos 6001-R10 South Kings Hwy. Myrtle Beach, SC 29575

6001-R10 South Kings Hwy.
Myrtle Beach, SC 29575
Ocean Lakes
Residential

MLS# 1922301 / Active
4 br, 3 ba, 1800 Sqft, HOA: $658 Monthly
Type: Detached Leased Land, Year Built: 2003

Lake front beauty! This 4 bedroom 3 bath home is perfectly situated on a corner lot on the main lake as you enter the award winning Ocean Lakes Fam... 

More Details

$319,900
Provided courtesy of Keller Williams MB S. Realty
5 Photos 1050 East Isle of Palms Ave. Myrtle Beach, SC 29579

1050 East Isle of Palms Ave.
Myrtle Beach, SC 29579
Waterway Palms Plantation
Residential

MLS# 1922300 / Active
4 br, 3 ba, 1 ½ ba, 4800 Sqft, HOA: $107 Monthly
Type: Detached, Year Built: 2019

Don't miss out on this Two Story custom home on this private wooded lot in Waterway Palm Plantation. Open concept kitchen/great room with coffered... 

More Details

$505,000
Provided courtesy of Shoreline Realty
37 Photos 37 Rolling Oak Dr. Georgetown, SC 29440

37 Rolling Oak Dr.
Georgetown, SC 29440
Yauhannah Landing
Residential

MLS# 1922299 / Active
3 br, 2 ba, 2200 Sqft, HOA: $50 Monthly
Type: Detached, Year Built: 2017

Nestled in a neighborhood right on the border of Horry and Georgetown counties, this 3 bedroom/ 2 bathroom Georgetown home is located within the ga... 

More Details

$174,900
Provided courtesy of Century 21 The Harrelson Group
32 Photos 235 Tradd Rd. Georgetown, SC 29440

235 Tradd Rd.
Georgetown, SC 29440
Windsor Plantation - Georgetown
Residential

MLS# 1922293 / Active
3 br, 2 ba, 1 ½ ba, 3500 Sqft
Type: Detached, Year Built: 1986

Peaceful living next to Black River with community boat dock and only a few minutes from Historic District with shopping & dining. Beautiful settin... 

More Details

$334,000
Provided courtesy of Pawleys Seaside Realty
40 Photos 2411 Metts Dr. North Myrtle Beach, SC 29582

2411 Metts Dr.
North Myrtle Beach, SC 29582
Pinewood Acres
Residential

MLS# 1922292 / Active
3 br, 2 ba, 1900 Sqft
Type: Detached, Year Built: 1974

This lovely home is in a very desirable neighborhood with NO HOA!! Close to the ocean, this is a well established area with local homes and famili... 

More Details

$279,000
Provided courtesy of Sunrise Real Estate
24 Photos 603 S Ocean Blvd. #514 North Myrtle Beach, SC 29582

603 S Ocean Blvd. #514
North Myrtle Beach, SC 29582
Mar Vista Grande
Condo/townhouse

MLS# 1922286 / Active
3 br, 3 ba, 1700 Sqft, HOA: $903 Monthly
n/a Floor, Unit: 514, Loc: Ocean View

Beautiful Ocean Views from The Mar Vista Grande.This 3 bedroom and 3 full Bath condo is sure to impress & screams luxurious and sophisticated. Gran... 

More Details

$299,900
Provided courtesy of Century 21 The Harrelson Group
33 Photos 101 West Haven Dr. #B Myrtle Beach, SC 29579

101 West Haven Dr. #B
Myrtle Beach, SC 29579
Carolina Forest - Carolina Willo
Condo/townhouse

MLS# 1922288 / Active
3 br, 2 ba, 1350 Sqft, HOA: $289 Monthly
n/a Floor, Unit: B, Loc: n/a

Are you looking for a well priced primary or second home in the Myrtle Beach area? Then look no further. This lovely 3 bedroom 2 bath condo is lo... 

More Details

$105,999
Provided courtesy of Strand Realty Associates LLC

Provided courtesy of The Coastal Carolinas Association of REALTORS®. Information Deemed Reliable but Not Guaranteed. © Copyright 2019 of the Coastal Carolinas Association of REALTORS® MLS. All rights reserved. Information is provided exclusively for consumers’ personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Images related to data from the MLS is the sole property of the MLS and not the responsibility of the owner of this website.
MLS IDX data last updated on 10-16-2019 1:34 PM EST.