Saturday, December 15, 2012

Real Estate Law of Supply and Demand

For the past 7 years, property owners have been waiting for Myrtle Beach home prices to increase. The hope that the government would save the economy or banks would do more loan modifications were amongst the leading ideas that consumers listed as ways to save the collapsing real estate market.

In the end, there is one significant influencing factor that has to occur for prices to increase in any real estate market.

Supply must GO DOWN in order to see an upward tick in real estate prices. Of course, demand is almost equally important. We have to have buyers to buy the supply if movement is to occur. However, there are times when there is a lot of demand and a lot of supply and the market prices stay stagnant. In Myrtle Beach, we have seen this for a few years now. So, Supply is the key factor.

We will hear many arguments about where home prices in Myrtle Beach are heading. One thing that is not being argued right now is supply. Measuring supply is simple, factual and can be monitored easily through the MLS.

It is a fact that supply is on the decline in Myrtle Beach right now. In many cases, supply is down over 50% in condo buildings as well as residential neighborhoods.

If supply is on the decline then prices have to make a move upward. It is called the Law of Supply and Demand. This law applies to real estate all over America.

In addition to more positive prices, we also see average days on market decreasing as well as multiple offers on our active inventory. Of course, I am not claiming we are about to see a booming real estate market in Myrtle Beach anytime soon. I will step out and claim that the market has made a much needed shift which allows many home owners or condo owners in Myrtle Beach a chance to sell.

The agents at Century 21 The Harrelson group are a dedicated group of Myrtle Beach Realtors looking to serve the consumer at the highest level. If we can be of service to you or anyone you know, please don't hesitate to give us a call.

The Harrelson Group has successfully served over 1000 buyers and home sellers in Myrtle Beach in 2012. We hope to serve you next.
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