Monday, Mar. 09, 2009

Buyer’s market for S.C. beach houses

The slowdown in S.C. home sales has hit beach homes particularly hard. But if you have an extra chunk of cash, now might be the time to take the dive, industry professionals say.

“People are waiting for the bottom, and they don’t feel it’s here yet,” said Cal Harrelson, an agent with Dunes Realty in Myrtle Beach. “When they know where the bottom is, it will have been six months ago.”

Home sales sank 24 percent statewide last year. But sales were even slower in most coastal areas. For example, the drop topped 31 percent in the Myrtle Beach area.

“Buy now. This is the best (buyers’) real estate market we’ve ever seen,” Harrelson said. “Prices are down. Inventory is way up, and interest rates are so low.”

Tom Maeser, market analyst for the Coastal Carolinas Association of Realtors, said prices have returned to 2005 levels.

But while beach homes are more affordable, finding a loan can be a problem.

“It’s hard to get money,” Maeser said.

Many banks are asking for 30 percent to 40 percent down payments and 700-plus credit scores for second homes, Maeser said.

Statistics show more people are avoiding lenders altogether on second homes.

Last year, 26 percent of home sales along the coast were cash sales, Maeser said. Typically, cash sales account for 13 percent to 15 percent of sales, he said.

Maeser said the cash buyers likely were taking money out of the stock market or other investments to buy beach homes.

“The potential is there,” Maeser said. “There are so many foreclosures, you can really get some pretty good deals.”

Reach Rupon at (803) 771-8308.

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