Coastal Condo Market Cools Significantly
Several coastal communities in North and South Carolina are experiencing a significant drop in condo sales. In Myrtle Beach alone, new and existing condo sales dropped 37 percent in the third quarter over the previous year. Along South Carolina’s Grand Strand, 10,000 condos sit on the market, which is several thousand more than last year.
With many of those properties being previously purchased by speculators and investors looking to sell and turn a profit, a potentially larger problem may be looming around the corner. Community banks that loaned them the money may find themselves foreclosing and loosing money in the near future. Some may not be able to withstand the unpaid debt which could lead to smaller banks merging/consolidating with larger banks to survive.