Grand Strand Real Estate Market for June 2013

In June Single Family homes continued strong with the number of sales year to date up 19.2% from 2012 with the median sales price up 6.72% YTD.

However, inventories are up almost 7% from last year and mortgage interest rates are slowly climbing higher; these factors will keep the number of sales and further price gains under pressure, but off setting this is the number of distressed properties (foreclosed, etc.) which is down 33.8% from last year.

Condos show smaller gains with the number of sales up 4.8% year to date and the median sales price about the same; distressed properties are down sharply, 43.7% from last year, potentially good news for sellers. Condos remain difficult to finance with about 61% being cash sales compared with about 26% for single family homes.

The complete market report compiled by SiteTech Systems can be found at:

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

Housing Recovery Picks Up Speed

The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic. 

CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year. 

"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."

CoreLogic economists predict home prices will rise another 2.7 percent in May. 

The following five states had the largest price gains over the past year: 

• Nevada: +24.6%
• California: +19.4%
• Arizona: +17.3%
• Hawaii: +17%
• Oregon: +15.5%

Will this trend continue, yes, but almost certainly not at this pace.  

Financing and re-financing remain difficult for most buyers, new construction is ramping up and sellers who had postponed selling are not listing their houses; these factors and others will pressure further price increases.

And, let's learn from experience, it prices do continue to increase at these levels, what's that called?  A BUBBLE.  What the nation needs to see is steady increase in housing prices, matching the the rate of inflation or a little more.

Surfside Beach Real Estate Update for April 2013

For the update, just click

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

FLOOD INSURANCE Changes and Increases

Changes are coming to the national flood insurance program.  What hasn't changed is this: Almost every property owner should have flood insurance.  PERIOD.  Floods can happen any place at any time.

Flood insurance is almost never included in your homeowners insurance.

If you live in a Special Flood Hazard Area there is a 26 percent chance of a flood during the life of a 30 year mortgage. If so, you really need food insurance, even if your property is paid off.  Find out if you're in a Special Flood Hazard Area at www.msc.fema.gov.

FEMA's National Flood Insurance program allows homeowners and renters to purchase to purchase federally backed flood insurance.  Visit www.floodsmart.gov to learn more.

Congress has mandated that the national flood insurance program become financially self sustaining.  Many policies will go up, sometimes small changes can make a big difference in your premium.  For example, if you have an elevated home (one on stilts) any downstairs enclosure must now be less than 300 sqft or you'll pay a higher price.  Home elevators can also bring higher premiums unless modified or designed to special standards.  So know before you buy, check with your insurance agent.  If your house has a large downstairs enclosure or an elevator, now is a good time to check into necessary modifications, before your premium jumps.

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

Grand Strand Real Estate Activity March 2013

Here's the March 2013 Report from SiteTech Systems:

"Solid First Quarter for Grand Strand Real Estate Activity

…..sales activity up double digits and sales prices have stabilized and rebounded

The momentum for the last half of 2012 carried into the first quarter of 2013 in both Single Family Residential (SFR) and Condo activity. In March, SFR sales volume was up 11.6% as compared to March, 2012. This solid growth translated to Year to Date (YTD) sales to be up 11.6% to prior year levels. SFR inventory maintained it seasonal increase and is now 4.6% higher than March 2012 levels. Non distressed listings continued to decline and now represent 12.6% of all SFR listings. Continuing its trend from February, SFR median sales price was $176,000. YTD, the SFR median sales price is $174,990 which is up 3.5% from its 2012 level. The improvement in median sales price is driven by a reduction in the percentage of distressed sales. For condos, the listing inventory increased seasonally but is down 11.7% from its 2012 level. Distressed condo listings continue to decline and are down 33% from its prior year’s level. Condo sales remained strong, up 3.7% for March 2012. YTD, condo sales are up 9.3% from their 2012 level. Driven by cash and distressed sales prices, the median sales price for condos slid to $101,750. However, the YTD median sales price of condo sales are up 4.5% from 2012. After a strong 2012, residential lot sales activity has slowed and are down 8.1% from their 2012 levels. The median sales price of residential lots have remained stable at approximately $35,000."

For the full report:

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

Myrtle Beach Real Estate Market, February 2013

Here's the February Grand Strand Market Report from 
SiteTech Sytems:

"January’s momentum continued in February…..strong sales 

and rebounded sales price led a strong February.

Single Family Residential (SFR) sales activity remained strong as 

February’s volume was up 13.6% from February 2012. Year to 

date, SFR sales volume is up 16.6% to prior year levels. SFR 

inventory is seasonally up, however February’s level is 3% higher 

that prior year levels. On a positive note, non-distressed listings 

continue to decline and now represent a declining share of the 

total listing inventory. SFR median sales price rebounded from 

January to $175,000. This improvement was driven by higher 

non-distressed sales prices. Year to date, SFR median sales 

price is down 3.7% from 2012. Condo sales activity was strong in 

February; up 18.7% from prior year level. Year to date, condo 

sales are up 21.9%. Condo inventory increased seasonally, but is 

still below prior year levels (down 10.4%). Condo median sales 

prices rebounded from January, up 14.5% from January. The 

improvement was in both distressed and non-distressed 

sales. Year to date, the condo median sales price is up 9.5% 

from 2012. The rate of residential lot sales improvement slowed, 

but the 2013 volume is up 9% from 2012. Overall, distress sales 

remain at 28% of all sales, up slightly from Q4 2012."

For the full report, click:

Grand Strand February Market Report 2013

Sellers: Does Your House Compete ONLINE?

After you list your house, check to see what your home looks like online.  No kidding.

Chances are the agents you met with before listing (you did meet with more than one, didn't you?) demonstrated their commitment to online marketing and you chose an agent who takes online marketing very seriously. Now that you've listed, it's time for further due diligence. Today, online marketing sells houses, but somehow, there are still hundreds of listings in every major city that receive a failing grade on their online presence, once the home has actually been listed.  Make sure yours isn't one of them.

Pictures are critical. Not one or two, but at least a dozen, preferably more, that show the home in the best possible light.  In focus, well lighted, pictures sell houses.  No pictures of dirty dishes or the trash area, please. Pictures of the neighborhood are good too. 

Listing descriptions that may bemuse buyers, but would befuddle and even anger the homeowner are common. Start with no description, misspelled words, etc. A description of clearly the wrong house or which says, "this place is a mess," are out there and won't get your house sold.

Sometimes, the problem is a glitch along the production chain that it takes to get a property marketed online; other times agents just aren't bothering to do the job right. It’s free for you, the seller, to hop online and see how your home is presented online; the same listings, virtual tours, and property websites that buyers will see.  And it’s often the only way these glitches will get caught, brought to the agent’s attention and rectified. If you can't find your home online, chances are no one else can either.

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 Economic Report 4th Quarter 2012

Attached is the fourth quarter Grand Strand Economic Report which is prepared in a joint effort from SiteTech Systems and CCU’s Wall College of Business Center for Economic & Community Development.

During the fourth quarter, the Grand Strand economy continued to improve, although we have yet to see significant gains in employment and income. The unemployment rate continues to fall, almost entirely due to unemployed individuals leaving the labor force. Healthcare and higher education are leading growth in employment, but these gains have not yet been strong enough to offset the losses in other sectors. The strong retirement demographic continues to stabilize demand in both the tourism and residential construction sectors. Nationally, the economy weakened in the fourth quarter of 2012 as GDP declined 0.1 percent. Fiscal uncertainty associated with the budget debate as well as the expiration of the 2 percentage point reduction in the payroll tax will weigh on investor and consumer confidence in the first half of 2013.

Tourism has experienced growth compared to the 4^th quarter of 2011.  The Grand Strand witnessed increases in occupancy rate, ADR, and RevPar. The hospitality related taxes and fees decreased in the 4^th quarter due to the unusually high amount of collections in the previous year.  This is partly due to SC DOR’s legal decision to collect taxes back as far as 10 years on VRBO properties and recording the fees in the period they are collected and not when they are accrued.

Real estate continues to improve in the 4^th quarter as the number of SFR and condo/townhome sales increase and excess inventory is decreasing.  The median sales prices for condo/townhomes are flat from 2011, seeing a substantial increase in sales with virtually no price appreciation.  The SFR median sales has decreased almost 3% from that of 2011. Sales prices will increase as the distressed properties continue to be pushed through the inventory.  SFR building permits have increased almost 70% as well-located subdivisions continue to attract buyers and builders.

Read the entire report at:

Grand Strand Economic Report 4th Quarter 2012

Pre-Approval versus Pre-Qualified....

If you were taking a home buying class, the first thing you would talk about is getting pre-approved by a lender.  Unless you're in the fortunate position of being able to pay for your new home up front, you will have to borrow money. 

When the real estate market was slow, the sense of urgency to get financing was not very high. Buyers figured they could take their time to find a home and then they'd firm things up with their lender. Now the market is starting to improve,  but financing remains difficult to get, so the first thing a serious buyer should do is line up their financing.  This means getting pre-approved to borrow a certain amount, not just being pre-qualified.

There is a big difference.  A pre-qualification is just an initial step, typically a phone conversation about your overall financial picture. The lender may discuss income, debts, and go over different payment options, but it should not be confused with a firm pre-approval.

In order to grant a pre-approval letter,  a lender will probably complete a formal application, pull the buyer's  credit report and collect specific documentation such as pay stubs, W-2's and tax returns. This will allow them to better define your maximum price range and that that they can make the loan.

Being pre-approved will make you a stronger buyer and allows you to move quickly if needed. In an active market, you never know when you'll find the home for you, but when you do, you should act quickly.  If you have to wait while you get your financing in order, you may lose the home to other buyers.

Another benefit to being pre-approved is that real estate agents will take your interest more seriously and be willing to devote their time and money to helping you find a home. Many top agents require their clients have a firm pre-approval letter before they will show property. The same with sellers.  A buyer who can demonstrate that they can actually buy the house is more likely to have their offer accepted and is in a stronger negotiating position.

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

News You Can Use: Free Music

Amazon.com has announced that anyone who has bought a CD on Amazon over the last 15 years is entitled to a free digital copy of that album and the deal applies to all purchases going forward.

Your tunes will automatically appear in Amazon's Cloud Player and will be immediately available for download.  If you've never accessed your account, you'll find the music there when you do.

A great deal especially if you've lost your CD or had them stolen from your car.  But think about it, it's a little creepy that Amazon keeps all your purchases on file, apparently forever.....

Now if they'd just make the same deal for books....

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. 

Price Your Property Right

One of the biggest problems that we have in the Grand Strand  market is sellers still expect to get 2006 prices
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​Buyers in general are well informed and have done their homework on the Internet and always ask for market comps. All to often sellers ​say, “Well, my property is special which is why I bought it”. All those wonderful reasons are good points for potential buyers, but every buyer has their own list of dreams and desires and they’re all watching current sales on line.
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​In this market your property must be priced competitively AND it needs to be one or two best values in its market category to get agents' attention and on their show list. It has to be in great condition, because buyers are now looking for every flaw possible and are making objections for the smallest of items. If you're lucky enough to get a contract, there'll be an inspection and everything found will have to fixed, no matter how trivial, if the buyer doesn't insist, their lender will.

The end result for sellers that don’t price to the market is being just behind the selling price range and risking further price declines. If you are a property owner and truly want to sell, ask you listing broker to do a very thorough market analysis and ask what it will take to be the first one or two properties shown in your property's market niche. You might not like the answer, but pricing to market will greatly improve your odds of making a fast sale and time is money too.

Want To Get A Mortgage In 2013?

Ah, remember the good old days, say just a few years ago, when all you had to do to get a mortgage was ask and then fight off the mortgage brokers?  If you haven't applied for a mortgage in the last year or two, get ready now for the new reality: Credit standards are tight and that's an understatement.

Lenders these days are engaging in "defensive underwriting".  While the Federal Housing Administration (FHA) allows borrowers with credit scores under 700 and down payments of just 3.5% to buy homes, that doesn't mean that you can get a loan on these terms.  Lenders are scrutinizing property appraisals, income tax returns and bank statements for any flaw, no matter how small that could be used to force them to buy back a loan.  Did you sell grandfathers pocket watch on ebay and make a one time deposit of a few hundred dollars to your checking account? Be prepared to explain where the money came from, with documents.  If your bank statement says there are seven pages, don't throw away the last three even though they contain nothing but the terms and conditions of your checking account; the lender will want them all and for at least the previous three months.

What to do?  If you're even thinking of applying for a mortgage in the next year or so, start getting ready now.  Pull your credit report from all three credit bureaus and carefully review them.  If they are less than perfect, now is the time ask for corrections and do so by old fashioned letter, not phone calls and emails and keep a copy of everything.  It's usually not a good idea to close credit accounts you don't use, you might even consider using them occasionally. If you carry a balance month to month on your credit cards, get it down to less than 20% of your over all credit line and pay on time. Resist the urge to open new accounts at stores just to get a discount on a purchase; old credit is better than new credit.

Next assemble your last three years of tax returns and look for anything that might raise a question with a lender and gather the documentation now to substantiate the return.  The same with bank accounts, review the last year at least for abnormal deposits, you'll need to explain them.  Unlike credit accounts, closing little used savings and checking accounts might help, certainly you'll have less paper to submit and explain.

The bottom line: if you want to get a mortgage these days, you must be prepared to submit the most trivial financial documents and explain them, your credit report must be as clean as you can make it and be ready to explain any negative information with documentation.  Start now.

Could Rising Demand in 2013 Boost Prices?

It looks like home prices finally hit bottom in 2012, so now what? Buyers increasingly expect home prices to continue to rise in 2013 and many are showing a sense of urgency. If 2013 is the first year since 2006 that prices ended up, we might see the beginning of equilibrium in the housing market.

In most of the nation, every single indicator is giving a thumbs up signal: inventory is falling, affordability is near a record high and household formation is up. Rents are rising in many markets, encouraging renters to buy and in some cases they can buy for a lower monthly outlay than renting. Investor demand for housing is up as they seek better returns for their money.

Rising prices could eventually encourage more sellers to put their homes on the market, fueling demand even further.  Why? Sellers have to live somewhere, often they are up sizing, down sizing or moving for retirement, all of which they put off waiting for higher prices. So many if not most sellers are buyers as well.

What's the catch?  Well, the folks in Washington aren't helping matters. Buyers and sellers want economic stability when they go to the market; "Fiscal Cliffs" with the uncertainty about what Congress might do, if indeed they do anything at all, doesn't help the economy or the housing market.