MYRTLE BEACH, S.C. (WBTW) — The latest report from the Coastal Carolinas Association of Realtors shows the average price for a single-family home increased more than 42% since 2020, while the Inspection Support Network ranked Myrtle Beach 17th in the nation for the largest spike in mortgage loan prices.
In 2019, the average mortgage loan from Guild Mortgage was about $190,000. In the SC Dept. of Consumer Affairs reported the average mortgage loan was about $229,000. In 2022, Guild Mortgage’s average loan is about $240,000. Max Neubauer, a mortgage loan officer with Guild Mortgage said it’s because of an increase in home values.
A first-time homebuyer, Danielle Flynn, has been going through the process since August 2021. She saw an interest rate increase of more than 2% since starting the process.
“Instead of 3.3%, which was in August, it’s now 5.499%,” Flynn said.
Interest rates impact a lot of factors for homebuyers.
“It affects obviously the down payment I have to put on the house, it affects how much over the life of the loan I have to pay,” Flynn said.
In 2019, the average interest rate for a home in Myrtle Beach was 4.4%, according to Neubauer. In 2020, the SC Dept. of Consumer Affairs reports interest rates were at 3.3%. In 2022, Guild Mortgage reported the average interest rate is almost at 5.5%. Neubauer said the rates rose over the past few years, but the rates are still low compared to the history of interest rates.
“We got spoiled. I mean we got spoiled for the last two years with the rates in the twos and the threes,” Neubauer said.
He said one of the major impacts of a rise in demand is relocation. More people are relocating to Myrtle Beach than before the pandemic.
“The biggest change in Myrtle Beach is just the desire to live somewhere you want to be,” Neubauer said.
“Even though prices have increased, it’s just matched up with the rest of the country as far as values,” he said.
First-time homebuyers should do research and talk to as many mortgage lenders as possible to find the best price and rate.