Are You Staying In Your Myrtle Beach Home For The Long Haul?
You might expect a surge in homes hitting the market, but the reality is that many sellers are staying put for now. The reasons behind this decision are numerous, and it's anyone's guess when they'll feel ready to take the leap.
Here in the Myrtle Beach area, retirees are a prominent presence. A significant number have bid farewell to their northern abodes and migrated south in pursuit of a more relaxed lifestyle, warmer weather, and affordable living – at one time affordable living included housing. However, homes that were valued at $200,000 just five years ago have now skyrocketed to well above the $400,000 mark. With that being said, many would be sellers just can't afford to move. Some of them either paid cash for their homes or had the fortunate opportunity to secure mortgages during the era of remarkably low interest rates.
To illustrate, consider a scenario where a homeowner purchased a home for $200,000 with a 30-year mortgage at a 2.5% interest rate. In this case, their monthly mortgage, covering both principal and interest, would amount to a mere $790. Now, let's imagine this homeowner decides to sell their current property and purchase a new $400,000 home, at current interest rate of 7% over 30 years, and they used their $200,000 equity as downpayment. In this new arrangement, their monthly payment would escalate to $1,330 – an increase of $540 per month. It's important to note that this figure could rise even higher, as the full $200,000 used for their down payment might not be entirely available for the new purchase as they will have selling and moving expenses. Given this scenario, it's no wonder that the thought of placing a "For Sale" sign in the front yard might not seem appealing.
Yet another consideration is the challenge of determining where to move. Housing inventory remains scarce, choices are limited, and demand remains strong. Although predictions suggested a potential dip in market prices, the current reality is we continue to see an uptick in property values, with demand remaining steadfast for sought-after properties.
Eventually we will start to see sellers making the decision to move. While the costs may be higher, the truth is that people are always finding a need to move. This could be due to job relocations, a desire to be closer to family, the urge to downsize or upsize, changes in family dynamics, or a myriad of other reasons. In the interim, whether you're a seller or a buyer, it's wise to prioritize saving, manage your debt responsibly, and maintain a strong credit score.