According to CNBC, pending home sales, a measure of signed contracts on existing homes, dropped a much worse-than-expected 10.2% in September from August, according to the National Association of Realtors.
Economists had predicted a 4% drop. Sales were down 31% year over year.
IS THE MARKET CRASHING IN MYRTLE BEACH?
Highly respected Myrtle Beach local realtor, Greg Sisson says the answer is no.
Says Sisson, “We went from… 7 months ago, we went from a “Frenzy Market” [to a] a seller’s market.“
Sisson adds, “We had under 1,000 homes for sale at the same time that 1250 homes sold that month. We had a three week supply of inventory. Today, we are at over 2,500 homes for sale.“
“So the inventory has gone up 2.5 times in seven months. At the same time the amount of sales has gone down 20% per month. So, of course the market is softening and leveling off,” Sisson adds.
“We went from a 3 week supply of inventory to a two and a half month supply of inventory. A two and a half month supply of inventory means we are still in a seller’s market,” says Sisson.
Home prices are dropping, however. Says Sisson, “I don’t think we are seeing depreciation. I think we saw a lot of over pricing in the last 3 to 6 months.“
The Myrtle Beach market has slowed from a “frenzy market” to a seller’s market according to Sisson.