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We have come into the season when many of us are looking ahead to the future with positive expectations for what the new decade will bring. If any of your plans for 2020 involve moving and/or a real estate transaction, congratulations!

The upcoming year is predicted to have many variables in play that you should know before you make your decisions regarding moving, buying, or selling real estate in the upcoming year.

The Good News!

One constant, that the experts agree on is that mortgage rates will remain low in 2020, although they differ in their predictions of just how low; Forbes is predicting rates around 3.7% - 3.9%, while Fannie Mae and Freddie Mac are forecasting rates as low as 3.5% - 3.6%, either way this is Great News for all concerned.

Lower rates can mean being able to afford more house; for example, you may have been contemplating moving out of your condo, with the historically low rates, now you can seriously consider upgrading to a house. Maybe perhaps you were searching for a 3BR/2Bth, now you may consider a 4BR/3bth. With these rates, it’s going to be nice just to have a mortgage you can feel very comfortable with.

The Challenge

Low inventory is expected continue this year.  As the demographics of the U.S. population changes so will the real estate market. The population changes are said to be a large part of the reasons for the market changes in housing inventory. The Gen-X population (40yrs-59yrs), are still raising children and not yet ready to retire so most are not selling their homes. The Boomers (born 1931-1959) have been settling in place, and not downsizing as much as their predecessors.

Low inventory will cause an increase in home prices. Thus, creates home buying challenges for the Millennials.

Millenials made up almost 50% of mortgages in 2019, the youngest of this population group will be turning 30 in 2020 and the eldest of the group will be 39.) As we all know this is the age when young adults are getting married, starting families, becoming first-time homebuyers, and moving for new jobs. The challenge for this group will not just be finding entry-level homes, but also being able to afford them.

New builds will offer some relief of inventory in the high end housing market, as we will see the new home builders completing construction on the higher priced homes.  Homebuyers searching for lower priced houses will likely find themselves in bidding wars; driving up prices. This in turn will be favorable for sellers whom will have good fortune of getting top dollar for their properties for sale

The Upside!

Myrtle Beach, SC (Horry county) is in a position to offset many of these challenges in inventory, price increase, and affordability that other parts of the nation will likely experience in 2020!

The median home price in Horry County is $215,302, and $135 price/Sq. Ft so although prices may increase, homes will continue to be affordable. The median home price for Myrtle Beach is a little higher at $223K. There are still entry-level homes for resale and new construction available at price points starting around $175K, lower for condos and townhouses.

Not all Millenials are struggling, actually many are doing quite well and as I mentioned earlier they are fast becoming the majority of those who are buying. Even though they may be first time buyers, they are buying smart, by planning ahead for the future and buying for value. Myrtle Beach offers what homebuyers need right now.

A growing trend are neighborhoods that I like to refer to as “Work, Play, Live” communities.  Generally, the community consists of condos, and/or townhouses, where they share space with retail stores, and shops. For example, luxury condo units above a Victoria’s Secret store, or an attorney may have an office on the 1^st floor of their 3-story townhouse.

A prime example of such a community is right here in Myrtle Beach at “The Market Common”,  it’s a thriving neighborhood where residents have the luxury of walking or biking daily to the park, shops, restaurants, or just through the pedestrian friendly neighborhood.  

With all things considered, low rates, affordability, and availability, 2020 should prove to be an excellent year for real estate in Myrtle Beach, for everyone, buyers, sellers and investors!

Contact me for more information. I’d love to hear from you.  Happy New Year!