1324 Bexley Street - PARK CIRCLE

Charleston Buyers in late 2011 - GUEST BLOGGER

By: Lillian Swift
lillyswift8@gmail.com

It’s very often that trends and statistic updates in the real estate industry focus on the stance of the sellers. A buyer’s prospective could be more important even though focus is often shined on the selling point. The decision for the buyer can certainly be affected by recent trends and statistics, but it’s more likely to depend on some of the important factors for their family or selves.

When it comes to prospective buyers, a report that’s focused from outside the seller is usually rare. Even though this is hard to find, a buyer’s view is just as important. One of the major factors for current buyers in 2011 is the record low mortgage rates throughout the United States, as well as locally in Charleston. Many of the rates around the nation have gone into the sub four ranges, including here in the area. In Charleston, there is 4.012 APR for a 30 year, fixed rate mortgage, being a very enticing proposition for potential buyers who are mulling.

The rising rental rates throughout the country and locally could also have an effect in the mind of a buyer. For the two bedroom level (those who would be interested in buying a home), Charleston apartments currently average $890 a month, up nine percent and close to $80 from the outset of the year. Combined with low mortgage rates, the rising apartment averages could be a major resource point for potential buyers.

As a potential buyer in the real estate market, it’s important to remember that trends aren’t likely to have a large portion in the decision process, rather just a small influence. Many of the national and local real estate sources online often have many common statistics in the headline. These are usually focused on factors such as sale price, inventory, as well as average length on the market and average price.

Inventory is one of the more common headline statistics that may have more of an effect on the potential buyer. This is because it actually shows what is available in the area, as well as possible choices on properties. Sale price and average price could have an effect on potential buyers, but not really unless there is a steep increase or deep decrease.

Buyers will most likely base their decision on prime factors such as location, taxing, cost of living and schooling, as well as some others. Even though recent real estate statistics can certainly give a good framework of the market, the situation will drive the sale, considering both the property and the feelings of the potential buyer.

Lillian Swift is a creative writer from the University of Michigan. As an aspiring writer she specializes in writing about travel detestations and tourism. Swift can be contacted at lillyswift8@gmail.com

Charleston Real Estate Market Shows Strength and Stability in 2011

Charleston Real Estate Market Shows Strength and Stability in 2011Sales Volume Up, Stability in Median Price, Inventory moves to new 5-year Low

CHARLESTON, SC—(December 12, 2011) According to preliminary figures released by The Charleston Trident Association of REALTORS® (CTAR) 648 homes sold at a median price of $191,500 in November, while inventory declined again to reach a new low of 7,258 homes listed as actively for sale. Last November, 588 homes sold at a median price of $189,700 as inventory stood nearly 20% higher than the current level. “The continued decline of inventory is an important factor in maintaining the stability and health of our local market, as we anticipate the addition of bank-owned inventory in the early stages of 2012” said Rob Woodul, 2011 President of CTAR.

Compared to last November, sales volume is up by 10% and the median home price is a slight 1% higher.

“2011 has been a pivotal year for the Charleston real estate market. Without the support of a tax credit or other incentives, our market had to stand on its own and it did so considerably well. We’ve had 11 months of relatively stable activity and are beginning to close the gap on prices—which will likely be affected by additional foreclosed inventory next year. However, continued job growth and economic development in our region should help soften the potential negative effects of that bank-owned inventory” said Woodul. “This year, local REALTORS® have helped nearly 8,500 individuals or families make an investment in the Charleston area. Whether the market is up or down, helping people and families find a place to call home only adds to our region’s stability and strengthens our sense of community” said Woodul.

Year-to-date, 8,453 homes have sold at a median price of $180,796, which indicates nearly 5% sales growth and a 3% decline in prices compared to this point in 2010, when just over 8,000 homes had sold at a median price of $187,00.

October Adjustment

Preliminary numbers reported for October 2011 indicated 670 homes sold at a median price of $190,000. Adjusted numbers now show 677 sales at the same median price.

BERKELEY COUNTY
168 homes sold at a median price of $175,312 in Berkeley County in November—a considerable improvement from last November, when 138 sales resulted in a median price of $169,187.

The most active area of the county was Goose Creek/Monck’s Corner from Highway 52 to the Cooper River, where 45 homes changed hands at a median price of $164,590. The most expensive homes in the County can be found on Daniel Island, where the median home price last month was $387,000. The most affordable homes in Berkeley County are in the area of St. Stephen/Bonneau, where the median home price was $57,900.

CHARLESTON COUNTY
335 homes sold at a median price of $225,848 in November in Charleston County; compared to 318 sales at a median price of $236,175 last November.

Outside of the county’s largest geographic area of Mount Pleasant, where 94 homes sold at a median price of $318,125, the most active area of the county was again, in West Ashley (outside I-526) where 51 homes sold at a significantly increased median price of $198,250. The most expensive homes in the County sold in the resort community of Wild Dunes, where 9 sales resulted in a median price of $827,900. The most affordable homes sold in North Charleston (inside I-526) where 16 homes changed hands at a median price of $55,000.

DORCHESTER COUNTY

125 homes sold at a median price of $176,000 during November in Dorchester County, which shows a healthy increase in sales volume and notable increase in price, compared to last November’s 112 sales at a median price of $152,136. The most active area was Summerville/Ridgeville, where 68 homes sold at a median price of $186,400; also making it the most expensive area in November. The most affordable homes sold in the St. George/Harleyville area, where 4 homes sold at a median price of $112,500.

Residential Real Estate Sales Volume Down; Median Price Increases 6%

Charleston Trident Association of REALTORS® Local Market Update - June 2011According to preliminary figures released today by the Charleston Trident Association of REALTORS® (CTAR), 902 homes sold at a median price of $195,955 in June—the highest recorded sales volume and peak for pricing so far this year. Last June, as the homebuyer tax credit drew to a close, more than 1,000 homes changed hands at a median price of $185,612. This June’s sales volume is 12% lower, while median price increased 6%.

Both sales and prices made significant month-over-month gains. Sales volume is up 12% and median price increased 9% from May.

The jump in median price is likely attributable to increased activity among repeat or move-up buyers. “It is challenging to draw meaningful comparisons between these drastically different markets, however, the majority of activity last year was first-time buyers” said Rob Woodul, 2011 CTAR President. “Repeat, move-up and second home buyers generally purchase in a higher price range, which could explain the increase in median price” he said.

The exclusive resort—and largely second-home—community of Wild Dunes showed significant year over year increases, as sales volume more than doubled and June’s median price shot into the $800,000 range.
“We continue to see healthy levels of buyer interest and showings, which are important indicators of where our market could be headed, but we still have a significant amount of distressed inventory. In the next few months, prices will likely settle back into the $170-180,000 range, which is a more typical price range for this year” said Woodul.

There were 8,795 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of June 30, 2011.

209 Marsh Oaks Dr | Charleston, SC | $649,000

209 Marsh Oaks on tidal creek.  Amazing home close to Historic Charleston and I-526

http://tinyurl.com/4463ezd



Charleston Area Real Estate Market Makes Month Over

CHARLESTON AREA REAL ESTATE MARKET MAKES MONTH-OVER-MONTH IMPROVEMENTS

Year-over-year data continues to show the difference of a non-incentivized market

CHARLESTON, SC—(June 10, 2011) According to preliminary data released by the Charleston Trident Association of REALTORS® (CTAR) 804 homes sold at a median price of $179,945 in May, which reflects 8% less buying activity and a 4% reduction in median price when compared to May 2010, when 878 homes sold at a median price of $186,497, as buyers were responding to the appeal of the homebuyer tax credit.

Sales volume grew by 4% and median price increased by 3% from April to May.

"We anticipate declines in year-over-year sales volume through the third quarter of this year. The data we’re analyzing thus far in 2011 reflects activity in a non-incentivized market, so it’s difficult to draw meaningful comparisons over last year’s figures” said 2011 CTAR President Rob Woodul.

The tax credit required a ratified contract to be in place by April 30, with an initial closing deadline of June 30. Legislation enacted in July 2010 extended the deadline to September 30.

“Most of the transactions encouraged by the appeal of the tax credit closed in May, June and July of last year—we saw huge gains in sales volume during those months” said Woodul. “It’s unlikely that we’ll reach those levels this year and we won’t really be able to determine how well our market is adjusting until later this year” he added.

There were 8,895 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of May 31, 2011.

April Adjustment
Preliminary numbers reported for April 2011 indicated 776 homes sold at a median price of $175,000. Adjusted numbers now show 801 sales at a median price of $177,000.

BERKELEY COUNTY
192 homes sold at a median price of $147,815 in May. This data reflects a decrease in both sales and prices when compared to May 2010’s 202 sales at a median price of $165,517.

The area with the highest sales volume is bordered by Goose Creek-Monck’s Corner and Highway 52, where 42 homes changed hands. Daniel Island logged the County’s highest median sale price at $310,000, while the County’s most affordable area is Cross and Bonneau, where the median price was recorded at $55,000.

CHARLESTON COUNTY
421 homes sold at a median price of $226,000 in Charleston County in May. This reflects a decrease in sales and stability in pricing when compared to May 2010’s 475 sales at a median price of $228,000.

The most active area of Charleston County was Mount Pleasant, where 118 homes sold. The highest median price of $1,335,000 was on Sullivan’s Island while the most affordable area of the County is again in North Charleston (inside of I-526).

DORCHESTER COUNTY
165 homes sold at a median price of $164,900 in Dorchester County. This reflects stability in both sales and prices when compared to May 2010’s 170 sales at a median price of $165,000.

The highest sales volume in occurred in the Summerville/Ridgeville area of Dorchester County, where 21 homes changed hands. The area of North Charleston bordered by Summerville and Ladson recorded the County’s highest median price at $171,257. The most affordable area of Dorchester County in May was Saint George and Harleyville, with a median price of $58,000.

With approximately 3,500 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

Executive Home on 3.93 Acres

http://www.seetheproperty.com/80070

Shadowmoss Plantation Gem

Owen Tyler | Carolina One Real Estate | (843) 224-5398 209 Toura Ct, Charleston, SC Shadowmoss Plantation Beauty 4BR/2BA Single Family House offered at $197,000 Year Built 1996 Sq Footage 1,879 Bedrooms 4 Bathrooms 2 full, 0 partial Floors 1 Parking Unspecified Lot Size 0.19 acres HOA/Maint $17 per month DESCRIPTION Pride of ownership shows in this home on quiet cul-de-sac in Shadowmoss Plantation with tons of designer finishes. Open floor plan allows you to live large and is an entertainer's dream come true; right down to the oversized screen porch over looking the lush backyard with pool. Top notch kitchen with GE Profile gas range, Bosch dishwasher and Quartz counters. Fantastic master suite on the first floor with walk-in closet and french doors to the backyard oasis. 209 Toura Ct has beautiful bamboo floors, gas fireplace, is wired for indoor/outdoor speakers and security, and a two car garage that fits two cars and room for storage. Well cared for home that is not to be missed! see additional photos below PROPERTY FEATURES - Central A/C - Central heat - Fireplace - High/Vaulted ceiling - Walk-in closet - Hardwood floor - Family room - Dining room - Dishwasher - Refrigerator - Stove/Oven - Microwave - Attic - Washer - Dryer - Laundry area - inside - Balcony, Deck, or Patio - Yard - Swimming pool COMMUNITY FEATURES - Clubhouse - Swimming pool(s) - Tennis court(s) - Golf course ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 4 Photo 5 Photo 6 Contact info: Owen Tyler Carolina One Real Estate (843) 224-5398 For sale by agent/broker Equal Opportunity Housing Posted: May 21, 2011, 7:08am PDT

10 Live Oak Drive, Isle of Palms, SC $599,000

Closed Sales and Average Sales Price Increase on Daniel Island

The total number of closed sales and the average sales price on single family homes has increased on Daniel Island when compared to March 2011, median sales price has also increased slightly.

** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the

6 months used in a dot are proportioned according to their share of sales during that period. All data from the

Charleston Trident Association of REALTORS®.  Sponsored by South Carolina REALTORS®.

Powered by 10K Research and Marketing. Information deemed reliable but not guaranteed.

Consult your agent for market specifics.

This could be the best deal in town

Not to be missed in West Ashley. Extremely close to MUSC, College of Charleston, and Charleston School of Law. Located perfectly a few minutes from Historic Charleston and very close to I-25 and I-526. Perfect to live in or a great investment.

Market Update for Historic Charleston, South Carolina

March 2011 Market Update for Historic Charleston, South Carolina

(Property Sales South of Highway 17)

The number of new listings coming on to the market is down, the number of closings are up, and inventory is declining.

Sales Up in the Tri-County Area

Residential Real Estate Sales Up as Spring Buying Season Takes Off

Sales volume up 19% from one year ago

According to preliminary data released by the Charleston Trident Association of REALTORS® (CTAR) 824 homes sold at a median price of $176,825 in March. Sales volume is 19% higher this March and median price is within 4% of where it was a year ago. Preliminary figures for March 2010 showed 691 homes sold at a median price of $185,000. In the last month, sales volume has increased almost 50% and prices climbed 8%.

"Showing such strong sales volume this early in the season is an excellent indicator that potential buyers are recognizing the opportunity and taking advantage of our region’s selection of well-priced homes. We anticipate a busy buying season, and as buyer demand increases, prices should follow suit—particularly as we continue to work through the inventory of distressed properties" said 2011 CTAR President Rob Woodul.

There were 8,663 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of March 31, 2011.

BERKELEY COUNTY
187 homes sold at a median price of $164,910 in March. These figures represent 29% sales growth and a slight (1%) uptick in prices over March of last year.

CHARLESTON COUNTY
435 homes sold at a median price of $222,000 in Charleston County in March. While sales volume increased about 15%, prices are down about 10% when compared to March of last year.

DORCHESTER COUNTY
165 homes sold at a median price of $154,500 in Dorchester County. This reflects a 16% increase in sales volume and 4% growth in prices as compared to last March.

The ARM is back: Should you bite?

Image Courtesy of Quickenloans.com

Saw this on MSN Money and though it provided really good advice to Buyer's considering the use of an ARM. 

Full disclosure here, I have an ARM on an investment property and it has been a really great thing for me.  I am not loosing my property to the bank, my interest rate didn't increase, and I don't feel trapped and can't sleep from worry.  And I think I would do it again, their I said it!

Of course ARM's are not for the faint at heart and do not provide the sense of security that many get from a 30 year fixed mortgage

Adjustable-rate mortgages are rising in popularity again. Lenders say they have learned from their mistakes of the past decade, but have borrowers?


By doubleace on Mon, Mar 21, 2011 11:36 AM


This post comes from Lynn Mucken at MSN Money.

Adjustable-rate mortgages are making a comeback. It's official; after all, the news appeared in The New York Times.

You remember ARMs, don't you? They were the sweet sirens of the last couple of decades, luring Americans into the homebuying or refinance market with low initial interest rates and unspoken but hinted-at guarantees that nothing could go wrong.

Of course, things did go wrong -- terribly so -- when the real estate market imploded in 2006. ARMs weren't solely to blame for the real estate pyramid scheme whose collapse still haunts our struggling economy, but they did their part.

Now ARMs are back -- up to 10% of all mortgages issued, double last year but still far from the 70% in 1994. So the questions once again are: Are they safe? Are they right for you? The answers are: Maybe, and maybe.

An adjustable-rate mortgage is a relatively simple lending device: The borrower gets the money to buy or refinance a home at a lower interest rate than is available through the traditional 30-year mortgage. That means lower house payments that you can afford now. Somewhere up the road -- six months, five years, seven years, whatever is specified in the contract -- the interest rate begins to adjust up or down according to a set formula based on interest-rate indexes.

It usually goes up -- inflation is almost always with us -- but in theory the borrower's income and home value have at least kept stride, so you can make the bigger payments or sell the house. The alleged safety net is that, if you are like most Americans, you will have sold your home and moved long before the higher interest kicks in, or you can easily slip into a less-volatile 30-year loan.

Unfortunately, it didn't work like that in 2006 and the unhappy years that followed. Too many loans had been granted to people -- the infamous subprime borrowers -- who bought too much house, were overextended even by the opening monthly payment or fell for lending gimmicks that allowed them to pay a "minimum" amount that actually increased their debt on the home. It's an old credit card trick, but when it is used on a $500,000 loan instead of an $800 bill, it is deadly.

Such people lost their homes, which helped collapse the housing market, which in turn destroyed the home value of even prime borrowers, who had no trouble paying their mortgage but couldn't sell their home because they owed more than it was worth on the market.

Lenders say that won't happen again.

They insist they won't lend to questionable borrowers. "An adjustable now is basically a prime product," Michael Moskowitz, the president of Equity Now, told The New York Times.

In addition, they say that the six-month rate change and high interest caps have mostly been replaced by relatively staid 5/1 or 7/1 ARMs (five or seven years at the initial interest rate, followed by annual changes in interest) with a maximum eventual cap 6 percentage points above the initial rate.

The savings available through ARMs are undeniable. Sean Bowler, a loan officer at DRB Mortgage, told the Times that someone borrowing $500,000 with a 5/1 ARM at 3.5% would save $42,507 in the first five years, before it adjusts, compared with a 30-year fixed-rate loan of 5.25%. A 7/1 ARM at 4.125% would save $38,330 over the first seven years.

So, should you go for an ARM?

Yes, bring it on.

•If you have a large down payment that virtually ensures that you will still have equity in the home when the ARM begins to adjust upward.
•If you are reasonably sure you will be selling the home before the interest rate starts climbing. This works especially well if you are 60 and plan to retire, and move, at 65.
•If you have enough in savings to weather a reversal in the market. You don't have to plan for 2006-09 type of debacle, but be cautious.
•If you are in a secure job with reliable expectations of salary increases.

Nope, not for me.

•If this is the home of your dreams, the neighborhood is perfect, and you want your babies to grow up here.
•If the payments are a stretch now, and the prospects of better income are shaky.
•If you're the anxious type. Worrying for five or seven years about what might happen is not healthy.
•If your marriage isn't solid. It's hard to buy a house on one income.
In all cases, shop carefully. Compare ARMs with conventional 30-year loans. Check out the fees. Always do the math. Get advice from a trusted friend or relative who understands numbers. Be aware that there are big differences between dreams and reality: Dreams go poof. Bad loans seem to stick around forever.

And one last thought: If the loan sounds too good to be true, it probably is. Despite ARMs' spotty history, almost nothing has been done to prevent bad things from happening again. Bad people will always be around.

Did your condo just get harder to sell?

If you have a condo for sale today you need to be aware of the financing difficulties present for all potential Buyers ...

New rules make condos harder to sell



Litigation over safety, construction issues can impede financing

By Steve Bergsman
Inman News™

March 18, 2011

Attorney Richard Vetstein told me this story: A client was going to buy a unit in a condominium development and thought he had it all wrapped up; he had an agreement in hand, deposit down and was two days away from closing.

Then he got a call from his lender, who said there were issues. "Issues?" the client asked. Essentially, his lender said there was active litigation involving the condominium building, and the loan would not be approved by underwriters.

Vetstein, of the eponymous Vetstein Law Group in Framingham, Mass., has done a considerable amount of legal work in the always colorful condominium world. Of the client in the story, he said, "Luckily, I was able to negotiate his deposit back, but he lost the deal, and since he had sold his prior residence, for awhile he was living in a motel. It just ruined his life for a couple of months."

The episode didn't make the seller of the condo unit any happier, either. Buyers these days are extremely hard to come by.

So what happened?

Recent changes to the Fannie Mae Selling Guide, including some alterations that went into effect March 1, make that afternoon leisure time on your personal veranda with the ice tea in your tumbler and a Robert Patterson paperback in your hand more chilling than comforting.

Condo watchdogs generally are focusing on two changes that could affect your pocketbook, either as a homeowner or home seller. The first has to do with newly converted, non-gut rehabilitation condo projects, while the second, which affected Vetstein's client, has to do with the collateral damage of an ongoing litigation.

Fannie Mae now declares mortgage loans in progress on a condo involved in any type of litigation, other than minor litigation (i.e., disputes over rights of quiet enjoyment), ineligible for delivery, said Orest Tomaselli, CEO of White Plains, N.Y.-based National Condo Advisors LLC.

"There are different types of litigation, from slip-and-fall cases to structural issues, so Fannie split it all up and any project where the HOA is named as a party defending litigation that relates to safety, structure (or) soundness of functional use (is) ineligible," Tomaselli said. "These projects will not be able to enjoy Fannie Mae project approval nor the financing that results from it."

The Fannie Mae guidelines read: "Any project (condo, co-op, or planned unit development) for which the homeowners association or co-op corporation is named as a party to pending litigation, or for which the project sponsor or developer is named as a party to pending litigation that relates to safety, structural soundness, habitability or functional use of the project, remains ineligible."

What this means is, if your neighbor has some personal beef with the homeowners association or developer because his plumbing doesn't work or the front door of the building has a bad lock and sues, well, that can affect you because a potential buyer can not get a Fannie Mae loan. Sure, the buyer can go to a bank and get a different loan, but that would just be more expensive.

What happened with Vetstein's client was that a crazy, litigious unit owner was suing the condo association and prior builder for minor leaks.

"It was something that really should have been resolved by the trustees, builder or even insurer," Vetstein explained. "It didn't involve a lot of money, but the lawsuit was out there, pending and not resolved. There was no waiver because the litigation fell within these parameters of structural soundness and safety. Fannie Mae said, 'Sorry, there's no gray area here.' "

The changes present a conundrum for HOAs. It's not uncommon in cold-weather states to experience poorly worked roofs resulting in water penetration of condominium units. Condo owners get upset, the HOA gets upset, and everyone wants to sue the builder or roofer. Unfortunately, this triggers a Fannie Mae issue.

"There is nothing the condo association can do about someone suing over defective conditions, but it certainly does have control over who they sue," Vetstein said. "The HOA needs to know a lawsuit will have a ripple effect."

The other problem for condo owners is specifically for those who live in developments that essentially have been converted from rentals into ownership units, or as Fannie Mae officially labels them, newly converted, non-gut-rehabilitation condo projects.

Those developments have to go through a Project Eligibility Review Service, or PERS.

The Fannie Mae Selling Guide updates read: "Many buildings are converted to condominiums without the replacement of major components resulting in eventual increased costs to unit owners for maintenance and major repairs. In order to mitigate the additional risk that newly converted, non-gut-rehabilitation projects pose, all newly converted, non-gut-rehabilitation condo projects must be submitted to PERS for review and approval."

The problem is the cost to the HOA. Fannie Mae charges $1,200 for the review, plus $30 for every unit in the buildings, said Tomaselli. So, if you're looking at 200-unit building, that's $7,200 that has to paid out.

In addition, the newly converted non-guts have to undergo a reserve study to determine over a 30-year period of time what the repair costs are going to be in regard to such items as elevators, roofs, mechanical and structural systems, and the exterior.

"The current guidelines require that only 10 percent of the budget be set aside for reserve. Once the reserve study is done, an accurate number is given on what the reserve should be -- and those numbers can be tremendous," Tomaselli said.

The main goal of a reserve study is accuracy. "This guideline requiring reserve studies for new non-gut-rehab condominiums will ensure accurate reserve funding enforcement that will eliminate special assessments in most cases," said Tomaselli.

It's not a bad thing for Fannie Mae because it is making sure homeowners are protected -- but for developments, increased maintenance can loom large.

Steve Bergsman is a freelance writer in Arizona and author of several books. His latest book, "After the Fall: Opportunities and Strategies for Real Estate Investing in the Coming Decade," has been ranked as a top-selling real estate investment book for the Amazon Kindle e-reader.

138 Marsh View Villas - $298,000

Folly Beach, South Carolina


Amazing views from the condo in private gated community!


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Sales Remain Stable, Foreclosur​es Continue to Impact Prices

RESIDENTIAL REAL ESTATE SALES STABLE, FORECLOSURES CONTINUE TO IMPACT PRICES

CHARLESTON, SC—(March 10, 2011) According to preliminary data released by the Charleston Trident Association of REALTORS® (CTAR) 557 homes sold at a median price of $163,500 in February. Preliminary figures for February 2010 showed 509 homes sold at a median price of $179,900—revised data for February 2010 reflects 561 sales at a median price of $180,000.

The most active price range in February was $160,000-$179,999. Last February, the most active range was $200,000-249,999, when many homeowners were taking advantage of move-up opportunities provided by the homebuyer tax credit.

"As we forecasted, prices have softened in the early months of this year as a result of the foreclosure inventory. Over the next 12 months or so, we’ll continue to work our way through this inventory and see prices begin to move forward" said 2011 CTAR President Rob Woodul.

According to figures released by RealtyTrac, more than 250,000 properties received at least one foreclosure-related notice in February, down 14% from January and down 27% from the same month last year. While the number of homes across the country receiving a foreclosure-related notice has fallen to a 36-month low, it’s likely an artificial dip as many lenders have significantly slowed their foreclosure processes due to increased scrutiny over how lenders are handling the repossessions.

RealtyTrac data currently shows an estimated 23,406 foreclosed homes in South Carolina and an average sale price of $111,503 for foreclosed homes statewide.

Woodul cites job growth and overall economic stability as the necessary catalysts for people to jump back into the real estate market. "It's not a question of demand for housing; it's a question of confidence and capability. As they should, people need to feel secure in their job and financial situation before making what will likely be the largest purchase of their lives" said Woodul.

Nationally, unemployment has declined to a nearly 2-year low of 8.9% but South Carolina's jobless rate still remains ahead of that curve, at 10.5%. The Charleston region saw a considerable improvement in its jobless rate, falling to 8.4 % from 9%.
"We will not see a true recovery of the housing market until we have steady and solid job growth" said Woodul.

There were 8,470 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of February 28, 2011.

BERKELEY COUNTY
Preliminary figures show that 141 homes sold in Berkeley County at a median price of $137,000 in February.

Click here for a full report on Berkeley County.

CHARLESTON COUNTY
Preliminary figures show that 277 properties changed hands in Charleston County in February, at a median price of $195,900.

Click here for a full report on Charleston County.

DORCHESTER COUNTY
Preliminary figures show that 122 homes sold at a median price of $145,000 in Dorchester County in February.

Click here for a full report on Dorchester County.

With approximately 3,500 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

REALTORS Ask Governor To Intervene

Charleston Trident Association of REALTORS ask Governor Nikki Haley to step-up and solve the rail dispute in Park Circle located in North Charleston, SC.

N. Charleston files lawsuit challenging condemnation

Ashley Fletcher Frampton
Published Feb. 15, 2011

 

Following through on its promises to engage the state in a legal battle, the city of North Charleston has filed a lawsuit challenging the S.C. Department of Commerce’s right to take several parcels on the former Navy base to build a rail yard.

 

The Commerce Department on Dec. 22 announced plans for building a rail yard near the Port of Charleston’s new cargo terminal on the former base. At the rail yard, shipping containers would be assembled into trains.

 

The same week in late December, state officials served several property owners, including the city, with notices that it would use eminent domain to take parcels for the facility.

 

The city’s lawsuit, filed Jan. 21, seeks to overturn the condemnation action. In nine separate claims, the city argues that the Commerce Department and its S.C. Public Railways Division:

• Did not complete the project plans and financial studies required for condemnation.
• Did not follow certain procedures outlined under the state’s eminent domain laws.
• Cannot legally take the city’s land for a public use because it is already devoted to a public use.
• Lack the statutory authority to build a port-related rail yard. That authority belongs to the S.C. Department of Transportation and the S.C. State Ports Authority, the city claims.
• Are violating city contracts and debt obligations.
• The Commerce Department has not yet submitted a response to the lawsuit.

“We believe the claims are without merit and will be filing responses soon,” said Commerce spokeswoman Kara Borie.

 

North Charleston filed the lawsuit for each of the three parcels the Commerce Department seeks to take from the city itself, as well as a tract that the city deeded to Clemson University several years ago for its Restoration Institute.

 

City attorney Brady Hair said the recent lawsuit won’t be the last one that North Charleston files, though he declined to detail future filings.

 

“Challenging the condemnation is just the first shot across the bow,” Hair said.

 

The “heart and soul of the city’s position,” Hair said, is its contention that the state committed in 2002 not to run trains serving the new port terminal through the northern end of the former Navy base, and that the state is now breaking that promise.

 

The city sought that commitment from the S.C. State Ports Authority in a formal memorandum of understanding in an effort to protect redevelopment efforts on the northern end of the base.

 

“That deal was a written agreement approved by the Budget and Control Board, signed by the city and signed by the State Ports Authority,” Hair said. “And now the state, through the Department of Commerce, has tried to come in and break that deal, and we don’t believe they can do that.”

 

But Commerce Department officials and some state lawmakers have said that they are not breaking the deal. Instead, they say, the agreement was between the SPA and the city, and it does not bind them.

 

Those who support the state rail plan say it’s the best strategy for providing the two major rail carriers, CSX Transportation and Norfolk Southern Corp., with equal access to the new port terminal. That equal footing makes the Port of Charleston more competitive with other ports, they say.

 

CSX has proposed its own plan for a rail yard that would be accessed only from the southern end of the base. Company executives recently said they would share that yard with competitor Norfolk Southern, and share its costs, to achieve equal dual access.

 

RESIDENTIAL REAL ESTATES SALES VOLUME INCREASES, MEDIAN PRICE DECLINES IN JANUARY

CHARLESTON, SC—(February 10, 2011) According to preliminary data released by the Charleston Trident Association of REALTORS® 484 homes sold at a median price of $174,495 in January. Revised data for January 2010 shows that 450 homes sold at a median price of $193,000.

Homes are selling an average of 11 days faster than they were a year ago, with average days on market settling at 117 for January 2011.

“We anticipated the decline in prices and expect to see prices trend downward somewhat in the first part of this year—our foreclosure-heavy inventory isn’t going to support upward movement of prices, but it is encouraging to see another uptick in sales volume” said 2011 CTAR President Rob Woodul.

There were 8,428 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of January 31, 2011.

BERKELEY COUNTY
Preliminary figures show that 104 homes sold in Berkeley County at a median price of $151,775 in January.

89 Single-Family Detached homes sold at a median price of $160,000, while 14 Townhomes/Condos sold at a median price of $90,505.

The most active part of Berkeley County was the area bordered by Jedburg Road/Highway 17A/College Park.

Click here for a full report on Berkeley County.

CHARLESTON COUNTY
Preliminary figures show that 278 properties changed hands in Charleston County in January, at a median price of $219,949.

204 Single-Family Detached homes sold at a median price of $259,750 and 74 Townhomes/Condos changed hands at a median price of $135,000.

The area north of the Isle of Palms connector in Mount Pleasant had the most activity in the County, closely followed by the area of West Ashley outside I-526 and Mount Pleasant south of the Isle of Palms connector.

Click here for a full report on Charleston County.

DORCHESTER COUNTY
Preliminary figures show that 87 homes sold at a median price of $137,500 in Dorchester County in January.

76 Single-Family Detached homes sold at a median price of $144,000, while 11 Townhouses/Condos sold at a median price of $104,335.

The Summerville/Ridgeville area of Dorchester County was the most active in January.

Click here for a full report on Dorchester County.

With 3,000 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

Tips to Keep in Mind If You’re Thinking about becoming a Real Estate Investor

RISMEDIA

RISMEDIA, February 7, 2011—With homeownership dropping and rental vacancy rates rising, it is clear many Americans are looking to make a change to renting instead of owning their home. Currently, homeownership levels are at 66.5%, the lowest they’ve been since 1998, reported recently by the Department of Commerce, and the rental vacancy rate at 9.3%, the highest its been since 2003. Many prospective investors could take this information and apply it to a very lucrative decision for future investment property purchases.

Nancy Braun, owner and broker-in-charge of Showcase Realty has been a real estate broker for over 14 years. Her expertise lies in REOs, short sales, distressed properties and she recently became a Neighborhood HUD Listing Broker. A large amount of her listings are being sold to real estate investors and she is sharing a few questions and tips to keep in mind if you are thinking about becoming a real estate investor.

What is real estate investing?
Real estate can be a great long-term investment. It is a tangible, cash-generating asset and appreciates in value. Real estate investment has proven to be a powerful method of accumulating wealth over time and investors are getting a return on their investment (ROI) in three ways: cash flow, return on taxes and appreciation.

What are the benefits of real estate investing?
The main benefit of real estate investing is the profit that you can make if you handle your investment correctly. Having a rental property provides a source of regular income, but other than that, investment properties qualify for numerous tax deductions which may include cost of building maintenance and repairs and interest paid on loans related to the property.

Are you looking to rent or flip?
Before you start looking at properties, you should decide on what you are going to do with the property once you attain it.

If you choose to buy, hold and rent it, take into consideration the responsibility it takes to be a landlord. You will need a lease agreement specifying what you will be responsible for maintaining, fixing, etc. and what the tenants will be responsible for like amount of rent, date of payments, leasing length, etc.

Becoming a landlord can turn into a very profitable venture if you make sure you are well-versed in property management, including fair housing laws and eviction and collection procedures. While you can self-manage, it may be wise to outsource this to a local experienced and qualified property management company. Either way, you must maintain the property to best preserve its value so it can eventually be sold at a significant profit.

If you choose to flip the property, you must take into account any and all property updates and repairs that need to be made. The term “flipping” means that you purchase a home, repair it and resell for profit. Both renting and flipping can be substantial financial investments, so make sure you have a reasonable budget in mind for the possible updates that will need to be made. Flipping a home can be considered less of a responsibility than becoming a landlord, but you must keep in mind that someone will be living in the home you are flipping and you want to make sure they will find it worth their money to purchase and move into. Consult your attorney and lender for restrictions on flipping. Keep in mind that flipping may not be the wise choice in a down housing economy.

How are your finances?
The better your credit, the more likely you will be able to get a decent loan. Since lenders know people are more likely to default on investment property, they usually require bigger down payments, higher interest rates and stronger finances for rental property investors. It will also be prudent to have a cash reserve left over after buying the property to put toward unexpected vacancies, maintenance and repairs. Typically the lender will require 20-25% down on an investor loan. In some instances a 10% down payment may suffice.

Additional considerations
-Location, location, location. If you decide on renting your investment property, make sure it is in an area where you can attract tenants. The same rules apply for finding a home to flip. When trying to sell a home, if it is located in a strong resale area, not only will you have a shorter hold time, but you will likely benefit from a greater return. Be sure to seek out a real estate agent that has experience advising investors not just owner-occupants.

-Timeline and budget. Having a reasonable, realistic timeline and budget for repairs will prepare you for success in your investment venture. Make sure to stick to the guidelines you set for yourself so you can end up with as much profit as possible and not overpay for your investment. Do not over-improve. This is not your personal residence. Only make improvements that will either make it more attractive to sell/rent, and/or will reduce your hold or vacancy time and ultimately show a return on your investment. There will always be unforeseen issues that may hold up construction or unexpected costs, but make allowances for such problems and you will stay on track.

Where can I find an affordable home to invest in?
With home prices at an all-time low, we are currently in a buyer’s market. There are many houses on the market being sold well below tax value that are just waiting to have a little TLC given to them to make them shine again. Seek out a real estate professional that specializes in real estate owned (REO), short sale and distressed properties and who also has experience working with investors.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

How did the South Carolina Real Estate Market Perform for 2010

The numbers are in ... See how South Carolina weathered the storm during 2010

Charleston Area Residential Real Estate | 2010 Year In Review

How did the Charleston Real Esteate market do in 2010?  This quick video presentation boils it all down for you...

Survey: Mortgage Rates Steady

RISMEDIA, January 27, 2011—Mortgage rates have remained steady, according to the latest figures from FreeRateUpdate.com. Current 30-year conforming fixed mortgage rates are at 4.625 percent, 15-year conforming fixed mortgage rates are at 3.875 percent and conforming 5/1 adjustable mortgage rates are at 3.125 percent. Well-qualified borrowers are able to take advantage of these low conforming mortgage rates with only 0.7 to 1.0 percent origination fees.

Current 30-year fixed FHA mortgage rates are 4.500 percent, 15-year fixed FHA mortgage rates are 4.000 percent, and FHA 5/1 adjustable rate mortgage rates are 3.125 percent. FHA mortgages have more favorable loan terms than conforming mortgage rates. The tradeoff, however, is the higher closing costs associated with an FHA loan. Additional fees that the Federal Housing Administration charges to borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, etc.

Jumbo mortgage rates are likewise currently stable. Current 30-year fixed jumbo mortgage rates are 5.125 percent, 15-year fixed jumbo mortgage rates are 4.750 percent, and jumbo 5/1 adjustable mortgage rates are 3.875 percent. Borrowers interested in obtaining a jumbo mortgage loan are able to do so in excess of the conforming loan limit for their desired area.

Mortgage back securities (MBS) prices are currently higher today than yesterday. MBS prices have in increased by +9/32 (FNMA 30-year 4.5 at 102.11). Mortgage rates and MBS prices have an inverse relationship, which means they move in opposite directions. Therefore, as MBS prices increase, mortgage rates are expected to decrease.

Lowcountry Residential Real Estate Market Shows Growth in 2010

Lowcountry Residential Real Estate Market Shows Growth in 2010

CHARLESTON, SC (January 19, 2011)—In the first half of 2010, the homebuyer tax credit was touted as life support for the national real estate market. Despite predictions for a post-tax credit fallout, the Charleston market maintained its footing and the region posted year-over-year increases with sales volume increasing 5% and prices up 3%.

2010 | 8,735 transactions at a median price of $187,500; 112 average days on market
2009 | 8,328 transactions at a median price of $181,505; 114 average days on market

“Charleston-area market indicators were largely positive over the last 12 months. We anticipate continued growth in sales volume, but expect foreclosures to have an effect on prices in the coming year” said 2011 CTAR President Rob Woodul. Nationally, experts are calling for potential price declines through the second quarter of 2011, following a report from RealtyTrac stating that lenders seized more than 1 million homes in 2010 and that an estimated 5 million homeowners are at least 60 days behind on their mortgage payments, but not yet in foreclosure.

“Some of those homeowners will utilize foreclosure prevention resources, or negotiate modified loans with their lenders. Locally, we can’t predict exactly how or where foreclosures will make their impact on our market, but we do know that there are an excess of lender-held properties that will add to our inventory in the coming year” said Woodul.

Inventory is slightly lower than it was a year ago, with 8,224 homes listed for sale in the Charleston Trident Multiple Listing Service (MLS) as of December 31, 2010.

Charleston County
Charleston County had a 13% increase in sales and 4% increase in median price. 4,568 properties changed hands at a median price of $235,450. In 2009, 4,039 homes sold at a median price of $226,305.

Folly Beach led the county, closing 105 sales in 2010—almost doubling from 54 sales in 2009. The jump in sales came with a 13% decline in prices, as increased affordability allowed more buyers to capitalize on deals on the island. The area of downtown Charleston above the crosstown and James Island both made gains in the last 12 months. Sales in upper downtown increased 52% with 132 sales at a median price of $221,125—4% growth for the year. 504 sales closed on James Island at a median price of $220,000—14% more sales and a 7% increase in median price.

Berkeley County
Berkeley County sales were up almost 6%, while median price made a steady 2% gain. 2,104 homes sold at a median price of $165,945 in 2010. In 2009, 1,992 homes sold at a median price of 163,000.

Daniel Island showed major improvement year-over-year, as 210 sales closed at a median price of $477,500; a 52% increase in sales volume and 17% increase in price. Rural areas of the county also showed improvement, as sales in Jedburg increased 11.5% over 2009 and prices increased by about 6%. 404 homes sold at a median price of $155,000 in 2010.

Dorchester County
Dorchester County struggled with 11% fewer sales but stability in price, fluctuating just 1%--1,767 homes changed hands at a median price of $159,500, as compared to 1,976 sales at a median price of $161,230 in 2009.

The area of Summerville bordered by North Charleston and Ladson showed a 20% drop in sales volume, with 627 closed sales as median prices settled at $156,000—a 6% decline from 2009. In the area of Summerville closer to Ridgeville, 796 homes sold at a median price of $167,863, which translates to 4% more sales than last year and no change in median price.

Are McMansions Dead?

moretrees.com

No McMansions for Millennials

By S. Mitra Kalita and Robbie Whelan
Jan 14, 2011 Provided by: , WSJ.com

Here's what Generation Y doesn't want: formal living rooms, soaker bathtubs, dependence on a car.

In other words, they don't want their parents' homes.

Much of this week's National Association of Home Builders conference has dwelled on the housing needs of an aging baby boomer population. But their children actually represent an even larger demographic. An estimated 80 million people comprise the category known as "Gen Y," youth born roughly between 1980 and the early 2000s. The boomers, meanwhile, boast 76 million.

Gen Y housing preferences are the subject of at least two panels at this week's convention. A key finding: They want to walk everywhere. Surveys show that 13% carpool to work, while 7% walk, said Melina Duggal, a principal with Orlando-based real estate adviser RCLCO. A whopping 88% want to be in an urban setting, but since cities themselves can be so expensive, places with shopping, dining and transit such as Bethesda and Arlington in the Washington suburbs will do just fine.

"One-third are willing to pay for the ability to walk," Ms. Duggal said. "They don't want to be in a cookie-cutter type of development. ...The suburbs will need to evolve to be attractive to Gen Y."

Outdoor space is important-but please, just a place to put the grill and have some friends over. Lawn-mowing not desired. Amenities such as fitness centers, game rooms and party rooms are important ("Is the room big enough to host a baby shower?" a millennial might think). "Outdoor fire pits," suggested Tony Weremeichik of Canin Associates, an architecture firm in Orlando. "Consider designing outdoor spaces as if they were living rooms."

Smaller rooms and fewer cavernous hallways to get everywhere, a bigger shower stall and skip the tub, he said. Oh, but don't forget space in front of the television for the Wii, and space to eat meals while glued to the tube, because dinner parties and families gathered around the table are so last-Gen. And maybe a little nook in the laundry room for Rover's bed?

In his presentation, KTGY Group residential designer David Senden showed slide after slide of dwellings that looked like a cross between a hotel lobby and the set of "Melrose Place."

He christened the subset of the generation delaying marriage and family as "dawdlers."

"A house in the suburbs is not for them," Mr. Senden said. "At least not yet."

Places to congregate are more important than a big apartment, he cautioned. He showed one layout of a studio apartment-350 square feet, as big as Mom and Dad's Great Room. Common space has migrated to "club rooms," he said, where Gen-Y residents can host meals and hang out before heading to a common movie-screening room or rooftop swimming pool that they share with the building's other tenants.

The Great Recession and its effects on young people's wages will affect how much home they can buy or rent for years to come.

"Not too many college grads can afford a lot of space in the city," he said. "Think lots of amenities with little tiny units-and a lot of them to keep (fees) down. ...The things these places are doing is constantly coordinating activities. The residents get to know each other and it makes for a much livelier and friendlier environment."

Original Article

Lurking Shadow Inventory Banks Plan to Dump on the Market

National real estate expert Steve Harney on FOX News says don't try to leverage the market if you need to sell, sell NOW ...


Steve Harney on Fox Business News from Steve Harney on Vimeo.

Before you purchase that condo make sure to ask a few questions



photo courtesy of petinlet.com

If you are considering the purchase of a condo you really need to ask the questions below to ensure you completely understand what you are buying. 

Sometimes it is impossible to get answers to every questions related to the condo regime prior to making your offer so make certain to you have your REALTOR included language in the offer ensuring you can nullify the contract should you find something in the condo documents that don't sit well with you.    

       7 Questions You Must Ask Before Buying a Condo

You've found your dream condo, and you're ready to relax and settle in. Hold everything. To keep from getting stuck with a lemon, you've got to do some homework. Here are the seven most important questions you need to ask before buying a condo.

1. "What's the Beef?"Take a look at the minutes of the condo association board meetings to see what the owners have been griping about. If everyone was complaining about the faulty plumbing or the gardener's absence, you know that the complex is having management difficulties. Even if there aren't any complaints, reading the minutes will reveal the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.

2. "Who's Been Naughty and Who's Been Nice?"Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is either a sign of discontent or an indication that the association might be underfunded.

3. "How Much Is In the Repair Fund?"Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.

4. "Can You Cover Me?"If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's policy. First, see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction.

Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association's policy. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.

5. "Does the Association Present Any Legal Problems?"Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Giese, the author, once found that the association bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.

6. "Is the Complex Renter-Friendly?"If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.

7. "Am I My Community's Keeper?"Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners -- especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.



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