Rental costs spike in Grand Strand as housing market booms
MYRTLE BEACH, S.C. (WMBF) - The housing market in the Grand Strand is booming and it’s driving some buyers into rental properties.
The Coastal Carolina Association of Realtors reports a record-setting increase in the cost to rent a home.
CCAR statistics for last month show the average home sold in October was only on the market for 101 days, and 99% of sellers got their list price or better.
“I do think we will see this type of growth well into the new year,” said CCAR CEO Laura Crowther.
Month-after-month, Crowther is wowed when she takes a look at the numbers.
Last year, the Grand Strand saw a record-setting amount of homes sold. Through October, this year has seen 20% more than that.
However, the total number of sales have dropped slightly every month since June. Crowther thinks that’s only natural considering how many houses were closed on during the boom.
“The one thing that we are starting to see more of is the lack of inventory, so that is going to constrict the market for the amount of available properties for home buyers to take advantage of,” said Crowther.
There’s only about a month and a half worth of inventory on the market right now, down from three months worth this time last year, and five months worth in October 2019.
Crowther says that could be the reason the cost to rent a home has skyrocketed, as potential buyers figure out short-term solutions while they wait out their dream home.
It’s something she says they may be waiting for through the end of the year.
“It’s also not unusual during the holiday season to see the inventory numbers stagnate or drop, simply because people don’t want to move, unless they have to during the holidays,” said Crowther.
The keys to a new home may not be particularly popular stocking stuffers this year, but Crowther says if buyers are willing to wait it out, they may have quite a few more options to choose from for their Valentines.
“I also expect with the first of the year, we’ll see those inventory numbers tick up, maybe create a little better opportunity for those people who have gotten into the rental market to transition into the home of their dreams,” said Crowther.
One good sign for buyers is that the sale of newly constructed homes hit a six-month high in October.
That indicates more new homes are being completed, despite the supply shortages we’ve been seeing nationwide.
It should help buyers a bit, but the bottom line is, now is still very much the time to sell.
You can find a complete list of the October housing market statistics for the Grand Strand here.
Copyright 2021 WMBF. All rights reserved.