Myrtle Beach Real Estate Mentioned in Business Week
Business Week’s Golf Digest has a detailed article about homes on golf courses and how the housing market has affected them. As we’ve seen here, sales on waterfront property have continued to be slower than normal, but indeed, golf course homes and condos are still sought after…perhaps due to lower prices and insurance.
Golf Digest and BusinessWeek commissioned a golf and leisure research company out of Omaha to survey thirty some golf resort areas and report on their findings about the real estate sales.
The Longitudes Group research company reports that those owning golf-course properties in places like Myrtle Beach, (up 34% over the past year and 126% over the past five years) and some other resort areas are not affected by the so-called real estate bubble. As we’ve known, while waterfront condos and much of the tourism communities here are down in sales, the less expensive golf course neighborhoods really are still in demand.
Our golf course properties, such as Mingo at Willbrook Plantation, are located a few miles from the ocean…many of them around 5-10 miles away. The homes and condos on the courses are quite beautiful, with tropical landscaping, scenic ponds, swimming pools, fabulous clubhouses, and the same amenities and upgrades as the oceanfront condos and homes.
At the same time, most are much lower priced, have lower property taxes and insurance (since they are often outside the city limits) and a different lifestyle…away from the tourists and the traffic.
Longitude further reports that investors in second homes at popular winter getaways like Sarasota, Fla. (down 10%) and Palm Springs (down 2%) are experiencing more anxiety.
“Money is just not flowing as easily or as confidently as it was 12 and 24 months ago,” says Longitudes Group President Sara Killeen, who studies golf-related real-estate trends for developers and investment groups. People in all categories are definitely feeling the credit crunch. The very high-end homes, more than $2 million, are holding their own. But people who have to carefully plan out the expense of a second home might be waiting on the sidelines to see what happens.”
With the exception of parts of Florida, they report that golf course property seems to hold its own, and even modestly appreciates in some cases. The ones that have dropped a bit in market value were often the ones that appreciated the highest during the rush several years ago. Even dropping a percentage in value still holds the original equity plus.
To quote the article:
Of all the areas surveyed, Myrtle Beach recorded the strongest percentage growth, partly because of its lower initial prices. Homeowners at the Barefoot Resort & Golf in North Myrtle Beach—which sits on the Atlantic Intracoastal Waterway and features courses designed by Tom Fazio, Pete Dye, Greg Norman and Davis Love III—have done even better. Properties there have appreciated an average of 56% over the past year.
“Affordability seems to be driving the growth there,” says Killeen. “You can get more for your money in Myrtle Beach, where the average golf home costs $410,000—than you can in Scottsdale or Sarasota.”
Indeed, real-estate values in most of South Florida, as well as Michigan and, to a lesser extent, Palm Springs and Reno, Nev., have been hit hard. Their best advice – Pay attention to the economic health of the area, and the amenities in the development.
Richard C. Davis from the tv show “Real Estate Pros” offers his rules for buying and judging investment property:
After deciding the general area that you want to buy, he suggests listing 10 developments that offer the amenities and lifestyle that you feel are important.
Avoid getting caught up in bidding situations that create a “buyers frenzy” or being misled and rushed by the marketing brochures and “buy now or never” schemes.
Finally, go to the tax assessor’s office and find out exactly what the most recent homes SOLD FOR…not the listing price. Davis says to use the exact term and ask for the “velocity of deed transfers” for the particular development. If there are fewer deed transfers, then sales are slower there. Look for the best deal, and plan to keep the property for a realistic period of time.
“For a buyer who has cash either to buy a home outright or put enough down to qualify for a loan below the $417,000 limit for conforming mortgages and an attractive interest rate, a down market like this one is a ripe time to buy undervalued properties.”
“People have been saying, ‘I’ll buy it, and even if I don’t like it, I’ll sell it and make money,’ ” says Davis, whose show will next track Trademark’s maneuvers in Charleston’s softening real-estate market.
“That party’s over,” Davis says. “Credit is too tight. I can remember the last time this happened. I was over at Kiawah Island buying foreclosures seven or eight years ago. It wasn’t any indication of the quality of the properties there. It was a reflection of the money situation. That’s where we’re at right now. There are some
tremendous bargains out there. Ten years from now, you’re going to look back and say you can’t believe how you got your place for 50 cents on the dollar.”
Our Myrtle Beach condo experts can advise and assist in choosing a golf course home, oceanfront property, or any of the hundreds of Myrtle Beach resorts, condominiums, and townhomes. If you are interested in any kind of Myrtle Beach real estate, we are here for you.