The Grand Strand housing market in Myrtle Beach, South Carolina is showing its first sign of price declines and one economist says increases in insurance costs are largely to blame.
The median price of resale condos fell about 2.5 percent to $169,500 in the third quarter from second quarter in Horry County, according to Market Opportunity Research Enterprises. For single-family homes resale prices dropped a little less than 2 percent to $193,300 in the third quarter.
Higher insurance rates along the coast were to blame for much of the increase, said Charleston Southern University economist Al Parish. Insurance along the coast cost more because of the potential for damages from hurricanes and other tropical storms.
“It’s going to depress prices until we find a solution,” Parish said of the higher rates. “You are going to start seeing condo projects pulled because they can’t sell them. It’s a serious, serious problem.”
Other factors putting a damper on prices are higher interest rates and an abundant supply of housing in the area.
Topics South Carolina
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