Supply and Demand in the Myrtle Beach Housing Market
Myrtle Beach is not one housing market. It is a collection of distinct markets, and they are rarely in the same condition at the same time.
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.
What follows is how the principle works, the one number that measures it, and why the Grand Strand behaves differently from most of the country.
Supply and Demand in The Housing Market
Supply and demand establish the foundation, but location, desirability and the type of property can dramatically change how those forces play out in Myrtle Beach.
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Basics of the Principle
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.
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Location
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.
Oceanfront is the clearest case. Nobody is making more of it, so supply there is effectively fixed no matter how many homes go up inland.
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Over-Supply of Housing
Desirability and Location have a positive impact on home pricing. Over-supply in the housing market will drive down home pricing.
If an abundance of homes for sale exists it is considered a "buyer's 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 lasts long enough it can drive the average price of homes down.
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Under-Supply of Housing
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 "seller's market".
This is seen frequently in Myrtle Beach. In certain desirable locations the building supply cannot keep up with the demand for homes.
Falling interest rates can add to it, since cheaper borrowing brings more buyers into the market at once while doing nothing to increase the number of homes for sale.
In this market home prices will rise, sometimes dramatically, leading to multiple offers and bidding wars.
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Important Take Aways
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.
Months of Supply: The Number That Measures It
Supply and demand sounds abstract until you attach a number to it. The one agents actually watch is months of supply — how long it would take to sell every home currently listed, at the current pace of sales, if nothing new came on the market.
Seller's Market
Expect stronger competition, fewer concessions and offers closer to or above asking price.
Balanced Market
Neither buyers nor sellers hold a clear advantage and pricing tends to move more gradually.
Buyer's Market
Buyers generally have more selection, greater negotiating room and more time to make decisions.
These thresholds are widely used but not absolute, and they behave differently across property types and individual neighborhoods.
Why Myrtle Beach Is Not One Market
A countywide figure can hide what is actually happening. On the Grand Strand, several distinct property markets run at once and they are frequently in opposite conditions.
Oceanfront Condos
Largely second homes and investments. Demand tracks discretionary spending and rental returns rather than local employment.
Inland New Construction
Supply can expand quickly when builders release phases, which caps price growth in a way the coast cannot match.
55+ Communities
Demand is driven heavily by retirement relocation, which moves on a different cycle from the wider market.
Luxury Homes
A smaller buyer pool, relatively few sales and properties that trade infrequently mean months of supply can swing dramatically on only a handful of transactions.
Three things shape demand here that most inland markets never deal with: a steady flow of retirees relocating from colder states, roughly 19 million visitors a year of whom a fraction become buyers, and second-home purchasers who buy because they want to rather than because they need to.
That last group is the reason this market can cool faster than a primary-residence market when conditions turn, and heat up faster when they improve.
Season matters too. Listing and buying activity on the coast follows a rhythm that a national average will not show you.
Where to Find the Current Numbers
Market conditions change continually. Rather than quote figures here that could be out of date within a quarter, the current numbers live in our market reports, which pull from the MLS.
You can also create your own by signing up for an account, which lets you build custom predictive market reports for the specific neighborhoods you are watching.
“The market that matters is not Myrtle Beach as a whole. It is the two or three neighborhoods and price ranges you are actually considering.”
Let Me Be Your Guide
Your best resource to understanding the current market is to work with a qualified professional REALTOR®. I 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.
The reason that matters: a headline about "the Myrtle Beach market" is usually an average across segments that have nothing to do with one another. What you actually need to know is the supply picture in the two or three neighborhoods and price bands you are seriously considering, and that is a much smaller question.
See my page on Identifying Value in Properties to make the most of any market, and how to negotiate once you have found one.
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.
Frequently Asked Questions
What is months of supply?
How long it would take to sell every home currently listed at the current pace of sales, if nothing new came on the market. Under four months is generally a seller's market, four to six is balanced, and over six is a buyer's market.
Is Myrtle Beach a buyer's or seller's market?
It depends entirely on which part of it. Oceanfront condos, inland new construction, 55+ communities and luxury homes are separate markets that are frequently in opposite conditions at the same time. A single figure for the whole area tells you very little about the neighborhood you are actually looking in.
What is a balanced market?
When supply and demand are roughly equivalent, generally four to six months of supply. Prices typically increase slightly over time, at a level more in line with inflation, and neither buyers nor sellers hold a clear advantage.
Why does oceanfront behave differently?
Because supply is effectively fixed. No amount of building inland creates more oceanfront, so scarcity there is permanent rather than cyclical. Demand is also driven largely by second-home and investment buyers rather than local employment.
How can I see current market conditions?
The market reports on this site pull current data from the MLS for Myrtle Beach, North Myrtle Beach and oceanfront homes. You can also create custom predictive market reports for specific neighborhoods by signing up for an account.
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Myrtle Beach Areas
Resort & Luxury Communities
Gated, oceanfront and golf communities along the Grand Strand.
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