Farmers' Markets in the Grand Strand

Think the produce at your local supermarket looks a little tired?  Try some of these farmers'  markets:

Surfside Beach -- Tuesdays -- 10AM to 3PM at the corner of Surfside Drive and Poplar Street

Deville Street -- Saturdays -- 10AM to 2PM  at the Market Common

Conway -- Saturday -- 8AM to 1PM  at 217 Laurel Street

Pawley's Island -- Wednesdays -- 9AM to 1PM at Parkersville Park

North Myrtle Beach -- Wednesday, Friday and Saturday 9AM to 6PM at corner of Oak and Joe White

GRAND STRAND MARKET REPORT April 2013

Here's the mostly good news from Site Tech Systems:

Single family homes sales are up in April, 31.5% from last year; year to date sales are up 19.5% from 2012. The median sales price shows signs of stabilization, up 3.1% from 2012.  However, as the number of sales climbs and prices stabilize, more homes are coming on the market, inventory is about 6% above last year and will probably continue to grow in May.  Increasing inventory tends to keep prices down, but fewer available homes are distressed inventory (homes in some stage of foreclosure) which is good as distressed home sales tend to put downward pressure on prices.

Condo sales, both in number and median price remained flat with 2012 and inventory continues to decline, both overall and distressed, which over the next few months should help prices.

Much better news for sellers and for buyers, time to take action.

Read the entire report at:

http://www.sitetechsystems.com/Grand_Strand_Market_Report.pdf

Litchfield / Pawleys Island Market Update - March 2013

For the Litchfield Market / Pawleys Island Update for March 2013:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/pawleysislandlitchfieldmar.pdf

Surfside Beach Real Estate Update - March 2013

For the Surfside Beach Real Estate Update for March 2013:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/surfsidebeachmar.pdf

5 Aesthetic Issues That Turn Off Buyers

Fixing these issues before listing can mean a fast sale and boost price:

Thinking of selling?  Take on these projects before listing for a big difference in how fast your home sells and for how much.  

Thinking of buying?  Look for the owners who didn't bother to fix the easy stuff and offer accordingly.

1  Overgrown landscaping.  Curb appeal sells and you've only got seconds as buyers drive by.  Do it yourself or hire it done and while you're at it, add a few flowers.

2  Ugly paint, inside and out.  Outside: power wash and touch up at a minimum.  Inside: neutral colors sell best and paint is cheap.  If you're sure you don't need to repaint, then make sure to clean around light switches, door knobs and such.  Wash the windows, too.

3  Mirror walls.  Take them down immediately and fix and repaint as required.  'nough said.

4  Wallpaper and paneling.  Chances are your taste in wall paper, no matter what, isn't your buyer's. Take it down and paint in neutral colors. Paneling is tricky. Real wood paneling is surprisingly expensive and may just need cleaning or refinishing. Real wood paneling probably isn't hiding problem walls; panel board probably is; take it down and fix them now.

5  Closet doors and interior doors.  Make sure they all fit, work and are clean--no dust and fingerprints. Replace missing doors and if you have beads to go with the mirror walls, you know what to do. Gone.

Grand Strand 2012 Market Report

The Grand Strand Market Report is out--here's a quick summary:

Nationally late 2012 appears to be the turn around for the real estate market and the Grand Strand is tracking along, perhaps a few months later.  

• Property sales are up by double digits over 2011
• Inventory (number of properties for sale) continues to decline
• Distressed inventory (short sales and foreclosures) continues to fall
• Single family homes sales were up 18.1% over 2011; condos up 11.7%
• For 2012 median home prices was $168K down 2.6% from last year; condos, $104K a 3% drop
• Both home and condo prices were up in December benefiting from declining inventories and low interest rates.

The big picture:  inventories are declining, number of sales are up, prices are trending up, read the full report here:  Grand Strand MarketReport, December 2012

Mortgage Forgiveness Debt Relief Act

On January 1, 2013, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act. This great news for struggling homeowners in the Grand Strand.

The Mortgage Forgiveness Debt Relief Act was originally passed in 2007 to aid the millions of homeowners who suddenly found themselves in danger of losing their homes to foreclosure following the housing market crash.

Under the Mortgage Forgiveness Debt Relief Act, any debt forgiven in a short sale, foreclosure, or loan modification, is exempt from federal taxes on primary residences.

For homeowners facing foreclosure, this exemption may save them from paying thousands, or even tens of thousands, in taxes on top of losing their homes. For another year, homeowners can take advantage of this exemption if they must  do a foreclosure, a short sale or a loan modification. 

Apartment Rents Continue to Rise

Landlords along the Grand Strand are finding that demand for apartments and rental houses is strong and high rents aren't deterring people from renting. But as rents continue to rise and and mortgage rates remain at near record lows, more folks are finding it's cheaper to buy than rent, if they can qualify for a mortgage.  However scraping together a down payment to buy a home remains tough for many consumers and tight mortgage standards are forcing some who might like to buy a home to continue renting.

Part of the high demand for rentals is driven by changing demographics as many people like the flexibility to be able to pick up and move; the improving job market makes people think twice about putting down roots if they believe relocating will be a good career move.

What's the impact for the Grand Stand?  If your job is secure and you're happy with the area, now is the time to buy; if you're looking for a better opportunity, keep renting.  As the economy continues to improve, developers are dusting off those apartment projects they put on hold; once new units hit the market, rents will stabilize.

The Shadow Market in 2013

The real estate market across the county came alive in late 2012 with home sales and housing starts up strongly.  Prices are doing better, too.  But skeptics still point to sizable overhang of properties headed to foreclosure--the so called "shadow" inventory--that they say will erode the market's recent gains.  Maybe.  

While the shadow inventory remains high, it may not choke off the strength we're seeing.  There are several reasons, first the number of homes in foreclosure is shrinking, down from a peak of 4.7 million nationally in 2009 to 3.4 million at  the end of 2012. The discount at which foreclosures sell has narrowed significantly, from around 24% in 2009 to 7% now. Inventories of new homes for sale are tight and the number of listings of previously owned homes is at an eleven year low. 

On the demand side, sales of new homes are up strongly and sales of previously owned homes are likely to follow. Investor buying has slowed in most areas as well. Mortgage rates remain at historic lows for those who can qualify and are likely to stay low for the next several years. Banks have become more adept at handling foreclosures and realize it's not in their interest to dump large numbers of houses on the market.  They do more short sales now, where they allow the home owner to sell for less than the mortgage owned--faster and less costly for the bank.  

It's going to take years for housing is back to normal, but as long the recovery continues, however slowly, the shadow market should have little effect.

10 Lessons Learned as Housing Recovers

Headlines abound: The Housing Bust is over… 

Housing has hit bottom and is turning around.  Realtors, homeowners, renters, and all Americans are sighing with collective relief.  If they're correct.

But first we need to pause and consider what we've learned in the last few years:

1  The economy is global.  The mess in Europe has to be resolved for the U S to see a sustained economic recovery and sustained housing recovery.

2 The folks in Washington D.C. must get their act together, work together and begin to resolve the economic issues facing the nation.  Fiscal cliffs, increased government spending and borrowing from China to support that spending do not bolster consumer confidence or boost the economy. 

3 The economy cannot recover without housing. Good News: the stock prices of the major U. S. home builders are up and they are beginning to build again. That puts Americans to work and guess what, if you have a job, that's the first step to buying your  own house.   

4 Homeowners confidence in the economy is directly related the value of their own homes.

5 Everyone needs shelter, but not everyone needs to own their shelter.  The American dream of owning your own home may not be appropriate for everyone.

6 High home ownership rates are important but they must be sustainable.  Owners must be able to afford their homes in the long run.

7 Home prices go UP and go DOWN.  If home prices have bottomed, they're likely to remain stable for some time.  Increases for the foreseeable future are likely to mirror the rate of inflation for most areas, but there'll be exceptions of course.

8 The process of purchasing/financing a home is more complicated now than ever before and will remain so. Sound  mortgage underwriting is critical.  Prospective buyers must be prepared for a detailed application process to get a mortgage. Expect every fact and every document to be verified. 

9 Home equity should not be used for ordinary living expenses.  We're not likely to see the days of taking out equity every few years.  

10 Financial reserves for families, companies, and countries are necessary.

What is important is that we remember what happened as we prepare to write the future.  Most importantly, we should also have a sense of accomplishment that we endured these life lessons.

There are seasons in the weather: spring, summer, fall and winter.  So there are in economic cycles.  It is great to be at the thaw of winter and the budding of spring.

Help For SC Home Owners Facing Foreclosure

Need help with your mortgage?

The S.C. Homeownership and Employment Lending Program has given about $26 million in aid to South Carolinians facing foreclosure since January 2011, but that's not even 10 percent of the $295 million it was given by the U.S. Treasury after South Carolina became one of five states to qualify in 2010 for the Obama administration's "Hardest-Hit Fund," based on high unemployment rates


Aid per home is capped at $36,000, meaning the program still has the resources to help you or someone you know.


The program has been endorsed by most of the large lenders in the state, including Citibank, Bank of America and Wells Fargo.


Applicants must meet at least one of several criteria: being unemployed, underemployed, dealing with the death of a spouse or facing unforeseen health issues.

The program is a nonprofit division of the SC state Housing Finance and Development Authority.

For more information: www.scmortgagehelp.com

But hurry,Whatever money SC HELP has left after 2017 must be returned to the U.S. Treasury.

.

Harvard: Home Sales Finally Poised to Improve

Harvard: Home Sales Finally Poised to Improve


Click the link above to read the article...

Forecosures Take Big Jump in 1st Quarter

In the first quarter of 2012, Horry County foreclosure filings were up 95% compared to last year with about 1460, most of which were lis pendens, the papers lenders file to start the foreclosure process.  About 1 out of every 127 properties in the state has a foreclosure filing, the 3rd highest in the state and the 10th highest in the nation.

What brought about the jump?  The economy is still weak and some of increase is those folks who were struggling to keep ahead and now they've had to let go.  Also federal and state lawsuits against 5 of the largest lenders has been settled, so a lot of pending foreclosures moved to foreclosure. 

The foreclosures continue to push down prices, in March the median price of a home or condo along the Grand Strand was $130,000 down 10.3 % from the same month last year.  With the tough financing environment, it's investors who are keeping the market going, paying cash--51 % of 1st quarter sales were cash.

South Carolina Real Estate Tax Law Change

The South Carolina Real Property Valuation Reform Act of 2006 requires properties to be reassessed when there is a an "assessable transfer of interest", usually a change in ownership due to a sale.  Also known as a point of sale reassessment, it can cause large increases in property tax bills.

Last year the General Assembly changes the rules for commercial property, including rental property and second homes.  Such property is still reassessed, but the new value is discounted by 25 percent if the owner applies for the "commercial exemption."  The discounted assessment cannot be lower than the assessment prior to the sale or transfer.

So what's the affect been?  Large commercial deals are benefiting while the impact on second home sales is limited as many second homes are located along The Grand Strand where prices have been falling in recent years.  Still, if you've owned property for a long time and still have a gain, the break may help you get a higher price than the guy next door who bought a few years ago.

February 2012--Sales Up, Prices Down

Real Estate sales along The Grand Strand rose 10.2 percent in February, to 541, compared to last year, significantly out pacing state wide sales which increased 4.8 percent.  But prices continued to fall,  2.2 percent but compared to a state with increase of  2.6 percent.  However, if you look at other areas in the state, we're doing better--Aiken dropped 18.1 percent, Greenwood dropped 17.3 percent, the Piedmont region fell 15 percent and north Augusta fell 13.3 percent.  The median price of a house or a condo along the Strand fell to $135,000.

What are we likely to see going forward? --more of the same as the area works through a back log of foreclosures and a short sales.  Then there is the shadow inventory--houses not on the market, but whose owners want to sell.  Some are owned by banks and will hit the market as the foreclosure process is completed while others are owned by individuals waiting for the market to improve.

When can we see prices firming? Probably not until 2014.  When can we expect to see prices increasing? Even further out and then nothing like the boom years 2000-2006.  When prices start to increase again, they're likely to pace the rate of inflation, 2-3 percent a year.

Bottom line: A buyer's market for the next few years.

Technology Notes

Have trouble keeping up with the modern world? Does your "smart" phone have a mind of it's own? Have trouble figuring out how to get your CD collection into your walkman, er, ipod?

Check into OLLI, that is Osher Life Long Learning Institute at Coastal Carolina University which provides scores of short courses for adults during the day and evening at three locations along the Grand Strand.  I heard about a class for android tablet users, signed up and spent three delightful afternoons at CCU's 79th Street campus with instructor Kathleen Libby, a seasoned instructor and self admitted "geek."  The classes cost a few bucks, but I learned numerous tricks about my android tablet AND almost all of them were directly applicable to my android phone. I've now figured out what a widget is, how to "sync" my portable devices with my desk top and how to print from the "cloud."

Kathleen's tip on wire management for all those wires under your desk was alone worth the price of the course--visit the drug store for some of those clips that ladies use to hold their pony tails in place; that's right, they come in all sizes and snap open and closed.  You can go from an unsightly mess of cables to a neat solution in a skinny minute.

More information on OLLI at www.coastal.edu/olli or call 843-349-2767.  

Popsitive Trends in 2011 & 2012

Clearly 2011 was a challenging year, but there is a lot to be positive about looking ahead to the rest of 2012.  Housing statistics are starting to look good and the length of the housing down turn itself points to turning the corner, maybe this summer.  Washington's fiscal policy remains indecisive, but most major economic indicators are showing stability and positive, though admittedly weak trends.  The pace of growth is slow, but that's to be expected in an economic recovery from a financial crisis. 

Some good trends:

• Households are paying off their consumer debt even though credit is becoming easier to obtain, including home equity lines of credit which grew for the first time in years in the 3rd quarter of 2011. 
• Consumer sentiment picked up sharply in the last half of 2011, to a 6 month high in December.  Still low, but maybe consumers believe the economy will pick up in 2012.  Increasing confidence can become self fulfilling.
• The labor market is slowly coming back--December jobless claims were at their lowest level since 2008, but unemployment remains persistently high and gains are often due to declines in the number of people in the workforce.  It's going to take years until we get unemployment down to where it should be, 2 or 3 percent, and until we do, those folks can't buy houses and will have trouble keeping the ones they have, both downward pressure on the housing market.
• Housing prices continue to decline, a trend that will continue until we work off the backlog of foreclosures, short sales and the shadow inventory  (homes that folks want to sell which they took off the market, waiting for higher prices).  Until all of these houses are sold, prices will remain under pressure.  Housing recessions are always long and this one is no different.  But the good news is, affordability is rising dramatically due to lower prices and rock bottom mortgage rates.

Home prices may not stabilize completely in 2012, but we're getting closer--rising affordability itself will put a floor under prices, maybe this summer.  Stay tuned.

Better Year in 2012?

No question about it, new home construction around town has picked up since the first of the year.  While noting like boom days a few years back, builders are back to work, perhaps at pre boom levels, building homes in all price ranges.  Hard data are difficult to gather and it's difficult to say what's causing this up tick in construction, but several things may be driving buyers.  First, folks may just be tired of waiting, second, interest rates remain historically low for those who qualify and third, some of the new homes sitting on the market have been sold and inventory levels are down from a year ago.

One thing for sure, the market is more competitive than ever as the many foreclosures and short sales continue to push prices lower. Home buyers are all looking for a good deal and all expect to spend less money than a few yearts ago, so builders will have to squeeze their profit margins and be ready to bargain.  Buyers who are serious have their financing lined up and ready to sign, something we haven't seen in a while.  If one developer can't make the deal happen, the next one will.

2012 may not mark the end of our troubled housing market, but it may mark the beginning of the long awaited stabilization of house prices and better markets down the road.