More Permits, Sales Encourage Builders
By Lenore McKenzie-Morris
Builders pulled more permits for new construction in the final half of 2009 than they did in 2008 in Horry County, giving many in the industry hope that things are slowly turning around.
A 23-percent rise in the number of permits issued through Horry County from July through November includes 554 residential permits for new construction.
“We feel like it’s coming back pretty good, and we feel like it’s going to be at least as good this year,” said Hal Dixon, co-owner of Flagship Construction, one of the largest independent builders in the county.
The company has 32 homes under construction now and more under contract for construction later this year.
“Last year was a very good year for us as far as total number of houses built, and this year is shaping to be as good or better than last year,” Dixon said.
“We’ve lowered our prices,” he said, “and we got very, very aggressive with our prices. And, of course, the $8,000 tax credit was a great help last year, and they’ve extended it.”
Flagship’s homes, which are sold by RealtyWorks, are priced from $129,000 at Highland Ridge just west of the Intracoastal Waterway off U.S. 501. Other Flagship homes start in the $130,000 to $140,000 range, perfect for the first-time buyer seeking the tax credit available to anyone who contracts on a home by April 30 and closes on it by June 30.
/media/images/Building_permits_in_Myrtle_Beach_2009_-_4.jpgFirst-time home buyers include those who have not purchased a home in the past three years. Those who have owned a home in the last three years are not excluded, however, as long as they’ve lived in the house for the five consecutive years as their primary residence. The tax credit for existing home owners is limited to $6,500.
“If you are going to build a house, what could be a better time?” Dixon said. “The interest rates are down and prices are down, and you are going to get a tax credit.”
Dixon’s company is not the only one faring well in the Myrtle Beach area, however. Dock Street Communities, well known for its success with The Townhomes at Market Common on the former Myrtle Beach Air Force Base, have invested in property further south.
David Kennedy Wilkes, a vice president with Dock Street, said the company purchased the Seasons at Prince Creek community in Murrells Inlet last fall.
“We’ve had 15 sales since November,” Wilkes said. “We bought the entire property, and we bought another one in St. Augustine, Florida.
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“We’re put a lot of money in cleaning up the site and finishing up the homes that weren’t complete, and are hoping to finish the pool and courts by the end of the month.”
Seasons had 12 furnished models and very few residents when its parent company, Levitt and Sons, went bankrupt in 2007. Construction crews abandoned the homes they were working on and residents were wondering what would happen to their properties.
Dock Street Communities is now working with residents on plans for the clubhouse.
“They really have gotten comfortable,” Wilkes said. “We are going to give them everything that was originally promised to them by Levitt. We have focus groups with the home owners association, asking them `What do you want in your clubhouse?’”
While Dock Street works to reinvigorate the Seasons community, the company continues to build on the former Air Force base.
Dock Street just broke ground on a 66-single-family home project called Sweetgrass Square at The Market Common. The new Charleston-style homes extend Dock Street’s neighborhoods to the other side of Pampas Drive, near Horry-Georgetown Technical College and the city‘s bark park.
In addition, Dock Street is building row homes off Murray Street and Pampas Drive. Sales are underway on units at Market View, row homes that will face the existing live-work town homes lining Howard Avenue.
“We’re a sale or two away on Market View from having the required pre-sell,” Wilkes said.
While Market Common may be the most notable construction project in the city of Myrtle Beach, it’s not the only thing going on. Other projects include the South Atlantic Bank headquarters on 29th Avenue North at Robert Grissom Parkway, and the new apartment complex under construction on 10th Avenue North.
City officials issued 45 new construction permits between July and December of 2009 for residential and new home construction.
In North Myrtle Beach, construction continued at Barefoot Resort and Golf. Years ago, the town annexed land west of the waterway for this ambitious master planned development. Over the years, hundreds of homes were built each year. And while building there has slowed considerably, the city did issue permits to build 24 new condos at Clearwater Bay in the last half of 2009.
“We’ve seen an increase in activity in sales,” Wilkes said. “I’m not sure we can correlate that to the tax credit or if people are ready to sell their homes.
“The fourth quarter of 2009 was the strongest of the whole year,” he said. “We’re hoping that bodes well for this year. We are optimistic. Maybe we’re turning the corner.”
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