Buyers know that low interest rates cannot last forever. With the higher rates coming sooner than later, buyers are buying now to take advantage of it. It’s no secret that interest rates are extremely low. While they have increased a little recently, they are still low historical.
It is expected that an increase in interest rates will happen in December 2015. Due to this, people are buying now to take advantage of the low rates while they can. Common knowledge says; When supply goes down and demand increases, the price will rise. Homes in the Myrtle Beach area are selling faster and for more money than in the past. In some areas, there is not enough inventory to fit this demand.
Another factor is the price of rent is increasing. This is leading to a increase in first time home buyers. This is great news for sellers.
How Do Interest Rates affect Buyers?
Interest rates make a difference in what someone can afford. Even if they raise only by a small amount, it could cost a borrower thousands in interest.
How Do Interest Rates affect Sellers?
When rates are low, people are more likely to borrow money. This lead to the sale of homes increasing due to more people are able to take out loans.
City: Myrtle Beach
Number of Homes Sold by Year increased 24%
Average Selling Price increased 15%
Average Days on Market decreased 12%
Market information courtesy of Coastal Carolina Association of Realtors.