Home prices soar in Myrtle Beach area as supply numbers drop

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HORRY COUNTY, SC (WBTW) — The decrease in the housing supply coupled with an increase in the demand for homes means that the prices of homes increased by 16 percent from this time last year.

Ford Duncan, real estate advisor, and operations manager for Duncan Group Properties, says it is a simple supply-and-demand situation that is increasing the cost of homes.

“To something as small and simple as a can of soda to something as large as an investment in a
home,” Duncan said, “when you have a lack of inventory, that accounts for an increase in value.”

The graph below shows the difference in the average home price between 2019 and 2020 from January to September.

The average price of a home in September 2020 was $321,873 which is 16 percent higher than the average in September 2019, which was $278,213.

Duncan says appraisers are starting to look at the cost of building and it’s increasing the value of homes.

“Another side note to [the increase of home prices] is the cost of construction has also been going up, and if you look at a comparison of construction material cost and that sharp increase and then you also look at the sharp increase in the sales price of homes,” Duncan said.

Annie Williams, a realtor in Horry County, has seen the increase in the cost of building supplies has also factored into the price increase for homes.

“New construction lumber costs have increased,” Williams said, “A lot of builders are absorbing price increases and they have to pass that along to their buyers.”

Information gathered from the Coastal Carolina Association of Realtors monthly market indicators.

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