Real Estate is similar to many other markets. Supply and Demand is a principle that affects all markets, not just the Myrtle Beach Real Estate Market. The relationship between supply and demand isn't the only element pertaining to housing prices, yet it is one of the most important.
Supply and Demand in The Housing Market
When you have a large supply of an item in a marketplace overall prices for that item usually decrease. If supply of that same item becomes limited, prices will usually increase. At times if there is high demand for an item in high supply, the price could still rise. When looking at housing markets, scenarios exist where highly desirable homes in high supply bring buyers who are willing to pay a premium price.
Everyone understands how location is critical in Real Estate, especially Oceanfront. This is one factor that can highly impact the typical supply and demand model. A beautiful well-built home in an undesirable location may experience a hard time selling. Similarly, a "fixer-upper" in a highly desirable location might sell well above what is considered "market rate" for that type of home.
Desirability and Location have a positive impact of home pricing. Over-supply in the housing market will drive down home pricing. It an abundance of homes for sale exists it is considered a "buyers market". In this case buyers have more selection, become more selective, and might consider all available options before purchasing.
As a home seller in this scenario increased competition can lead to price drops, a way to remain competitive. If this last long enough it can drive the average price of homes down.
When a scarcity of properties for sale exists home prices can go up. An under-supply of homes can occur when people are reluctant to move from a desirable area and home owners do not want to sell. This creates an under-supply condition known as a "sellers market".
This is seen frequently in Myrtle Beach. In certain desirable locations the building supply cannot keep up with the demand for homes. Low interest rates can help contribute to this condition. In this market home prices will rise, sometimes dramatically, leading to multiple offers and bidding wars.
A "balanced market" is when supply and demand are roughly equivalent. When a housing market is in balance prices typically increase slightly over time, at a level more in line with inflation. Particular markets can shift between balanced, buyer, and seller conditions due to many factors.
Your best resource to Understanding the Current Market is to work with your qualified professional REALTOR®. Ashley DeLong is an expert in this area and can give you an up-to-date assessment of real market conditions throughout the different areas of Myrtle Beach. This hyperlocal assessment can help you understand where prices are currently and what is the best strategy for finding your perfect home!
See my page on Identifying Value in Properties to make the most of any market.
Let me be your guide to purchasing a home in Myrtle Beach. Please refer to my Buying a Home page for greater detail about my process of helping you purchase the perfect home at the best possible price.
Let's work together.
ASHLEY DELONG | REALTOR© |
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