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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Foreclosure Rates Up, South Carolina Ranks 16 in Nation

Foreclosures up more than 31% in S.C. for 2010
By Andy Owens
aowens@scbiznews.com

Published Jan. 14, 2011

Residential foreclosure filings were up 31.4% in 2010 in South Carolina when compared with the previous year, according to a report issued Thursday.

National foreclosure data company RealtyTrac said that the Palmetto State ranked 16th in the nation for highest number of foreclosures for the year.

The company’s annual report on distressed properties showed that 33,063 properties in South Carolina had some sort of foreclosure filing, which can range from a notice of default to a repossession of a home. That number represents 1.6% of the housing units in the state, RealtyTrac reported.

Two Southern states, Florida and Georgia, had a higher percentage of foreclosures per housing unit than South Carolina.

Nevada finished the year with the highest number of foreclosure filings, with 106,160 filings, representing more than 9% of the homes in the state. Nationally, there were more than 2.8 million foreclosure filings issued against distressed properties, indicating the depth and breadth of the housing crisis that sparked one of the longest recessions in the history of the country.

RealtyTrac CEO James J. Saccacio said foreclosure filings would have easily exceeded 3 million for the year if not for a documentation problem with several big banks that led to a fourth-quarter drop in foreclosures. Several lenders temporarily halted all foreclosure activity until the veracity of some of the involved foreclosure documents could be sorted out.

“Even so, 2010 foreclosure activity still hit a record high for our report, and many of the foreclosure proceedings that were stopped in late 2010 — which we estimate may be as high as a quarter million — will likely be restarted and add to the numbers in early 2011,” Saccacio said.

Foreclosures in the Southeast for 2010

State National Rank % of Homes in Distress

Florida 3 5.25

Georgia 6 3.25

South Carolina 16 1.61

Virginia 19 1.56

Tennessee 23 1.42

Alabama 33 0.97

North Carolina 34 0.96

The Closet Comes Out of the Closet - Coffee, TV , Flowers: Why Walk In ,When You Can Live In?.

The Closet Comes Out of the Closet

BY ANJALI ATHAVALEY, WSJ.COM


A closet used to start with a rod and end with a shelf. Then came the drive to organize, and companies like Elfa International AB and the Container Store grew selling modular and custom storage systems. Now comes the next phase in the closet's evolution—enjoyment.

Homeowners, some deferring plans to move into bigger houses, are upgrading their closets to room-like status, with not only specialized storage but also period lighting, breakfast bars and flat-screen TVs. Sometimes called "boutique" closets, or "dressing room" closets, they have sleek fixtures, display walls with backlighting and seating that make them feel like a fashion ...

Michal Czerwonka for The Wall Street Journal

Michal Czerwonka for The Wall Street Journal

 

Michal Czerwonka for The Wall Street Journal

More Stops on the Free Trolley Service

CARTA unveils shuttle expansion

Staff Report
Published Jan. 13, 2010

The Charleston Area Regional Transportation Authority this week rolled out an expansion of its popular free trolley service.

The King Street route of the Downtown Area Shuttle now extends to Spring Street and includes three new stops at the King Street’s intersections with King Morris, Ann and John streets.

Requests by business owners north of John Street, where the route originally looped, led to the extension, the authority said.

The service has been well-received since its November launch. CARTA numbers show that ridership from early December to early January was more than 12,000 riders year over year.

City officials who originally pitched the program said the idea was to get more tourists, locals and cruise ship passengers riding DASH; to make getting to peninsula shops, sites and restaurants easier; and to reduce traffic on the streets.

Funding for the three-rout program is provided by the city of Charleston, S.C. State Ports Authority and Charleston Area Convention and Visitors Bureau. The three agencies will pay a combined $360,000 this year.

What will happen with the rail plan in Park Circle?

Park Circle residents turn out for rail meeting

By Daniel Brock
Published Jan. 12, 2011

Residents of a North Charleston neighborhood are mobilizing in their fight against the state’s rail plan.

More than 120 community members attended the Olde North Charleston Neighborhood Council’s monthly meeting Tuesday night, a gathering that usually attracts a crowd of fewer than 10.

Worried faces filled the room on East Montague Avenue as citizens voiced their concerns over the S.C. Commerce Department’s rail plan, which city officials say likely will have a dramatic effect on quality of life in the area.

The plan calls for construction of an intermodal rail yard on 71 acres near the Clemson University Restoration Institute’s wind turbine test facility at the former North Charleston Navy base. The rail yard would provide near-dock access to the S.C. State Ports Authority terminal under construction at the base’s southern end. The region’s two Class I railroads, CSX Corp. and Norfolk Southern Corp., would use the yard.

North Charleston officials warn that the state’s plan would triple train traffic in the Park Circle area while greatly expanding the trains’ size — to almost two miles long in some cases. Residents questioned how the plan would affect emergency services, traffic patterns and property values.

City officials contend the Commerce proposal goes against a 2002 agreement with the SPA prohibiting that agency from using track that runs out the base’s north end and past areas North Charleston has spent millions to redevelop in the past decade.

Norfolk Southern trains would access the Commerce facility via tracks that run next to Park Circle, and CSX would arrive at the yard from the south.

“We’re going to spend a lot of money” on a legal fight against the plan, North Charleston Mayor Keith Summey told the crowd.

Summey said that the city has spent $15 million on its Waterfront Park, $2.1 million on another park on the south end of town and $3 million on redevelopment of the East Montague area, based on the belief that heavy trains would not rumble through the area.

He added that a renaissance in the area that includes extensive business and residential growth would have never happened had people thought they would one day have a rail yard as a neighbor.

Asked who had moved to Park Circle during the past eight years, nearly everyone in attendance raised a hand.

“We’re in for a fight folks, and we need your help,” said Summey, who said he wanted to bring 250 residents on a trip to address the state Legislature.

Already, a group of residents has formed a Facebook group, which is growing rapidly, and a website has popped up. The site allows users to sign an online petition and write letters of support.

A large e-mail list was compiled by meeting organizers during the gathering, and 100 bumper stickers that read “Save Park Circle No More Rails” were long gone moments after the crowd was dismissed.

Nicholai Burton, 28, lives in Park Circle and operates a nonprofit movie theater on East Montague Avenue. He helped design the website and said that TV ads and more Internet campaigns are on the way.

“We’re going to do what we can,” Burton said.

Vacation Rentals Poised to Make a Strong Return in 2011

Rental Resurgence: Vacation Homeowners Optimistic About Business in 2011

RISMEDIA, January 13, 2011

As leisure travel continues to rebound, owners of vacation rentals are expressing optimism about their bookings in 2011.

In fact, HomeAway, a leading online vacation rental marketplace, finds in its latest "HomeAway Vacation Rental Marketplace Report" that eight of 10 vacation rental owners anticipate their rental business this year will be stronger or about the same as it was in 2010.

The year is already off to a good start for some owners. According to HomeAway's seventh quarterly report, about 60 percent of vacation rental owners say their bookings for the first quarter of the year (January through March) are about the same or higher than the same time period last year.

The HomeAway report also found that a majority (59 percent) of vacation rental owners will keep their 2010 rental rates in place this year – good news for travelers looking to stretch their travel dollar in 2011. About 10 percent will decrease their rental rates from last year, and approximately 31 percent expect to increase their rates.

While rates look to be consistent in 2011, vacation rental inventory continues to grow. For the sixth consecutive quarter, Austin makes the list of the top 10 fastest-growing cities for vacation rental listings. Last year's list, comprised of three markets in California (Carnelian Bay, Santa Monica and Beverly Hills), three ski towns (Estes, Colo.; Truckee and Carnelian Bay, Calif.) and two lake destinations (Canyon Lake, Texas; Lake Norman, Illinois) is a change from this year's list that featured beaches and less traditional vacation rental destinations.

In addition to a greater selection of vacation rentals, travelers also will benefit from owners' efforts to improve their properties and the experience that travelers have while staying in them. The report found that 59 percent of vacation rental owners are planning an upgrade to their homes in 2011.

Of those owners who say they'll embark on an improvement project:
• 41 percent plan to paint the interior of their vacation home
• 29 percent will add new bedding
• 23 percent will update the home's exterior (landscaping, roofing, painting, etc.)
• 21 percent will add new electronics
• 17 percent will add new furniture
• 11 percent will upgrade the appliances
• 9 percent will make their vacation rental more energy efficient

Chinese New Year is February 3rd

If your "crafty" in the artsy sort of way, check out the step by step instructions from Lowes on how to make lanterns to usher in the Chinese New Year, Year of the Rabbit.

Create Chinese candle lanterns using wood veneer and other inexpensive items from Lowes and ring in the Chinese New Year in style.

Got the post-holiday blues? Good news: The Chinese New Year is just around the corner! Get a jump on the Year of the Rabbit with these Chinese lanterns -- simple to make if you follow these steps:

Step 1: Lay out a roll of veneer facing. Using a utility knife, cut out a piece 10 inches tall and 11 inches long.

Step 2: Measure in one inch from both ends of the veneer facing and draw a vertical line. Then measure 5-1/2 inches in from both ends and draw a vertical line down the middle of the facing. (This is the part of the veneer that will bulge out in your finished lantern.) Next, draw horizontal lines in one-inch increments.

Step 3: Slice along the horizontal lies you just drew.

Step 4: Wrap one end of the veneer around the mini louver vent.

Step 5: Apply electrical tape around both ends of the lantern.

Step 6: For an exotic mood lift, turn down the lights and insert LED candles in the bases of the lanterns.

RESIDENTIAL REAL ESTATE SALES POST GAINS IN DECEMBER

According to preliminary data released by the Charleston Trident Association of REALTORS®, 657 homes sold at a median price of $182,000 in the tri-county in December. Those figures represent a 6% increase in sales volume and a 7% decline in prices when compared to December 2009 when 618 homes sold at a median price of $195,534.

“It is encouraging that sales have shown consistent and steady growth—the number of closed transactions increased about 5% over last year. We may see some price softening in the coming year as we continue to work through the surplus of foreclosures that make up a significant part of our local inventory” said 2011 CTAR President Rob Woodul.

There were 8,233 homes actively listed for sale with the Charleston Trident Multiple Listing Service as of December 31, 2010.

A complete recap of 2010 market activity, with specific reports for Charleston, Berkeley and Dorchester counties and reviews of individual MLS areas will be released January 21.

Berkeley County
155 homes sold at a median price of $160,000 in December 2010. Last year, 141 homes sold at a median price of $170,112.

Charleston County
In Charleston County, 353 residential properties changed hands at a median price of $225,000. Last December, 313 properties sold at a median price of $250,000.

Dorchester County
128 homes sold at a median price of $163,250 in December. In December 2009, 146 homes sold at a median price of $167,830.

November 2010 Adjustment
Preliminary numbers reported for November 2010 indicated 588 homes sold at a median price of $189,700. Adjusted numbers now show 611 sales at a median price of $192,000.

The Best Places to Raise Your Kids 2011 - Bloomberg.com

Best place to raise kids in South Carolina: Goose Creek

Nearby city: Charleston
Population: 33,824
Median family income: $66,405
Runner-up: Walhalla

The City of Goose Creek is a sleepy, upscale suburb of Charleston established in 1961. The history of the town, however, dates back to the 1600s. Today the town has a growing bike and trail system through safe, tree-lined streets and curling cul-de-sacs. For kids, recreation includes everything from gymnastics to piano lessons to belly dancing at local community centers.

To see the other 50 Best Place according to Bloomberg.com

Spoleto Festival announces 2011 program

Staff Report

Charleston Regional Business Journal
Published Jan. 3, 2011

Spoleto Festival USA has announced the program for its 35th season, which runs from May 27 to June 12.

The 17-day arts festival this year will have more than 150 performances by 48 artistic ensembles, officials said.

Highlights include:

■Festival founder Gian Carlo Menotti’s opera “The Medium.”
■The American premiere of Kaija Saariaho’s opera “Émilie.”
■Druid and Atlantic Theater Company’s production of “The Cripple of Inishmaan” by Martin McDonagh.
■Cornwall, U.K.-based Kneehigh Theatre’s production of “The Red Shoes.”
■Festival debut of guest conductor James Gaffigan leading the Spoleto Festival USA Orchestra.
■“13 Most Beautiful ... Songs for Andy Warhol’s Screen Tests” with Indie-pop musicians Dean Wareham and Britta Phillips.
■Concerts by celebrated jazz vocalist Dianne Reeves, banjo icon Béla Fleck and the Original Flecktones, and native New Orleans sensation Trombone Shorty & Orleans Avenue.
■Dance performances by Ángel Corella’s Spain-based Corella Ballet and Shen Wei Dance Arts.
Visit the Spoleto Festival USA website for all the details.

Visit the Spoleto Festival USA website for all the details.

Spoleto Festival announces 2011 program