Year-to-date sales up 25%, median price gains 10%

Charleston-Area Home Sales and Prices Rise through Third Quarter
Year-to-date sales up 25%, median price gains 10%

CHARLESTON, SC—(October 10, 2013)

According to preliminary data released today by the Charleston Trident Association of REALTORS® (CTAR), 1,133 homes sold at a median price of $209,000 in September. Last September, 876 homes sold at a median price of $190,000 in the region.
 Year-to-date 9,861 homes have sold at a median price of $209,000 in an average of 86 days. Compared to this point in 2012, sales have increased by 25% and median price has risen by 10%. Year-to-date figures in 2012 showed 7,906 sales at a median price of $190,000.  Inventory is holding steady with 5,676 homes listed as ‘active’ for sale in the Charleston Trident Multiple Listing Service (CTMLS).

“We’ve closed almost as many sales in three quarters of 2013 as we did in the whole of 2012” said Dave Sansom, 2013 President of the CTMLS. “It has been a remarkable year of growth and progress for the Charleston-area real estate market. While we are heading into the end of the year and market activity may quiet down some, there are plenty of active and motivated buyers in the market” Sansom said.
 
The ongoing government shutdown isn’t expected to drastically impact the local real estate market unless it persists for a significant amount of time, but it is cause for buyers to ensure that they are working with a qualified REALTOR®.  “We don’t anticipate a major impact to productivity in our market but there may be some delays, particularly if you are seeking a federally-backed loan. Private banks have the ability to continue to close loans with the caveat of verifying the information they don’t currently have access to—tax transcripts, for example—once the government has reopened for business” said 2013 CTAR President Owen Tyler. “The shutdown could make buying a home a little more complicated, depending on the type of loan you’re securing. However, working with a qualified REALTOR® who knows how to navigate these temporary changes should alleviate any worry or concern for the buyer” added Sansom.
 
The changes to the National Flood Insurance Program (NFIP) have been a cause for concern for some Lowcountry buyers and sellers, as rates are adjusting to restore solvency to the NFIP. However, it is important to understand that every property is different. “Homes in the same neighborhood or even next door to one another can be impacted in very different ways. Seek the counsel of a trusted insurance agent to determine current and future rates for a property. If you are hoping to sell your home, invest in a current elevation certificate” said Tyler.
 
AUGUST ADJUSTMENTPreliminary data reported for August 2012 indicated that 1,278 homes sold at a median price of $217,462. Adjusted figures now show 1,290 homes sold at a median price of $217,726.
 
BERKELEY COUNTY231 homes sold at a median price of $180,000 in Berkeley County in September. The most active area in the county was the area bordered by Jedburg Road, Highway 17A and College Park, with 59 sales at a median price of $188,790.

CHARLESTON COUNTYIn Charleston County in September, 674 homes sold at a median price of $259,200. West Ashley (outside of I-526) was the most active area during the month with 88 sales at a median price of $184,456.
DORCHESTER COUNTY189 homes sold at a median price of $176,000 in September in Dorchester County. The most active area was Summerville/Ridgeville, where 103 homes sold at a median price of $187,500.
 

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With 3,700 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®.

Rising flood insurance rates a growing fear in Lowcountry

Recent article on InsuranceNewsNet.com picked from the Post & Courier regarding the potential increase in flood insurance in the greater Charleston  

By Tyrone Richardson, The Post and Courier, Charleston, S.C.

McClatchy-Tribune Information Services

July 28--Michael Sally, who works in the real estate business, went on a road trip in May.

His destination: Washington, D.C. The purpose: to hear first-hand how the Federal Emergency Management Agency intends to implement reforms to its flood insurance program.

Sally's interest and concern centers on the prediction that monthly premiums will rise sharply for millions of property owners across the country, including many in the Lowcountry.

The broker-in-charge of the Charleston real estate firm Pathway Real Estate Group described some unease after hearing the plan.

"This will be a tremendous blow to our communities," Sally said. "We have to press Congress to delay implementing this until we can see how to keep it affordable."

He and others describe a double-whammy for homeowners who are already reeling from overall increases in property insurance premiums, which are a separate expense from the federal flood program.

"You've got to think about retired people and others on a fixed income. This will have a major impact on their monthly expenses," said Andrew Muller, a property and liability insurance adviser at Neace Lukens. Local real estate professionals aren't alone in urging federal lawmakers to halt the massive reform to the debt-laden National Flood Insurance Program.

Similar efforts are taking place throughout the nation. Low-lying parts of South Carolina, Florida and other states could be hit hard by new government land surveys, which could trigger flood insurance premium increases so big that property owners in those areas might no longer be able to afford the coverage.

At issue are homeowners whose flood premiums historically have been "grandfathered" at lower rates if they followed the rules in place at the time they bought or built their home. Under last year's bipartisan overhaul, many of these people would face higher premiums when the new flood maps are issued next year.

The Senate Appropriations Committee approved a one-year delay on the rate increase as part of a $39 billion spending bill funding the Department of Homeland Security. The delay already has passed the House as part of its version of the spending bill, and now its fate is up to a future Senate vote.

U.S. Sens. Tim Scott and Lindsey Graham, both S.C. Republicans, could not be reached for comment. U.S. House members who voted in favor of the year delay include Rep. Jim Clyburn, D-S.C., and Rep. Mark Sanford, R-S.C.

Clyburn said there is a need to make the flood insurance self-sustainable, but "we have not addressed the affordability component for homeowners who could see their rates quadruple."

"We need to delay the rate increases to give us time to find a more equitable solution," he said.Sanford echoed similar thoughts, asking for FEMA to provide more details. "Everybody knows rates are going up, but I think it is important to explain for what reasons, and that's a basic if you're going to charge more," he said.

The overhaul

The name of the overhaul is the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012. It passed last year with sweeping bipartisan support. The government's flood insurance initiative has required more than $24 billion in bailouts since being established in 1968, with billions of dollars in additional costs from Superstorm Sandy still being tallied.

Most of the losses came because of subsidized rates and losses from repeat claims on homes and businesses that get flooded every few years. The federal program subsidizes rates for about 20 percent of the 5.6 million dwellings it insures, FEMA officials have said. Subsidies are applied to "pre-firm" structures, describing those that predate the first flood insurance rate maps in the 1960s.

The assistance was made available to help people afford coverage even though their dwellings weren't constructed with flood protection in mind. Some reforms are going ahead, such as requiring higher rates for second homes.

In October, premiums on businesses in flood zones and homes that have been severely or repeatedly flooded will climb 25 percent a year until the rates represent the "true risk" of flooding.

And subsidized rates will lapse when a home is sold or flooded repeatedly. The delay would provide relief to people whose older homes were built to the flood code in previous years or decades ago but would be judged to be at greater risk under new flood maps.

Higher rates on these grandfathered homeowners would otherwise start taking effect late next year, and some homeowners face multi-fold premium increases that could make their payments unaffordable.

Local lobbying

The Charleston Trident Association of Realtors is orchestrating efforts to understand the impact of rising flood rates on the region. That includes gathering survey information from its members and homeowners as it works with state and national counterparts to determine if the reform needs to be evaluated.

Ryan Castle, the association's government affairs director, said there's been limited feedback so far, largely because of uncertainty about the rate increases.

Owen Tyler, 2013 president of the association, said he expects an outpouring once rates start to hit property owners in the pocketbook. "I expect when 'assumable' flood policies go away and rate increases start, our membership and anyone with a flood policy or needing a flood policy will have something a good bit more to say," he said.

For now, the uncertainty has already grown some fears that the rate increases could stem the recovery in the local housing market. Interest rates already are edging higher. If flood premiums jump, it could push potential buyers from the market, some coastal Realtors say.

"The biggest concern is the uncertainty," said Andy Twisdale, a real estate agent on Hilton Head Island. "It seems like nobody has a handle on what the results will be." Sally said the uncertainty could have buyers halting a home purchase.

"Flood insurance has always been a factor when people look at purchasing a home, and now we have a scary unknown when we talk about the future of those rates," he said. Supporters of last year's flood insurance changes say delaying the premium increases means people whose homes are at lower risk of being flooded will have to pay higher premiums to subsidize those living in flood zones.

"Delaying risk-based flood insurance rates doesn't delay homeowners' vulnerability or delay the insolvency of the program," said Steve Ellis of Taxpayers for Common Sense, a Washington, D.C.-based watchdog group.

"Lower-risk homeowners will see their rates increase disproportionately to offset the revenue lost from delayed rate increases on higher-risk properties."

Reach Tyrone Richardson at 937-5550 and follow him on Twitter @tyrichardsonPC.
The Associated Press contributed to this story.

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(c)2013 The Post and Courier (Charleston, S.C.)

Visit The Post and Courier (Charleston, S.C.) at www.postandcourier.com

Distributed by MCT Information Services

The National Flood Insurance Program is Changing

The National Flood Insurance Program is changing.  Contact your insurance agent to find out if you will be affected by the Biggert-Waters Flood Insurance Reform Act of 2012.  If you are planning to purchase a property or even sell your property it is important to know how your property will be affected by the changes.

Following more than 17 extensions and two expirations since September 2008, the Biggert-Waters Flood Insurance Reform Act of 2012 was passed in June 2012 as part of a transportation funding bill and signed into law by the president on July 6, 2012. As part of the 5-year re-authorization of the NFIP, all properties that were previously paying below full actuarial rates will end their subsidy and begin paying the full rate.

Flood Insurance rates are on the rise, but stability has been put into the program ensuring the availability of coverage for years to come.

Here is the breakdown of the changes to come:

SUBSIDIZED Properties
(Pre-FIRM properties below Base Flood Elevation)
Primary residences: Rates will move to full actuarial rates at the time the property sells (retroactive to all properties sold since July 6, 2012).

Non-primary residences, commercial properties and repetitive loss properties:
Will see their rates move to actuarial rates within a 4-year period with 25% of the increase implemented every year. Click here for FEMA’s 2013 Rate Schedule for second/vacation homes (which includes the first 25% step increase) (Note: Rates are per $100 of coverage).

GRANDFATHERED Properties
(post-FIRM properties that were built at Base Flood Elevation, but BFE has been raised since construction OR the property was mapped into a different flood zone)
Rates will be phased out and be brought to new actuarial rates only after the new flood rate maps are adopted. This is expected to be completed in South Carolina in late 2014 or early 2015.

All Other Properties with Requiring Flood Insurance
All other properties will see rate increases of at least 5%, but could be higher (in the 20% range), but each property is different.

Date of Pre-FIRM
Pre-FIRM in Charleston County means start of construction or substantial improvement was before 1975. For every city and county in South Carolina, go here for the pre-FIRM date.

Information provided by and compiled by the Charleston Trident Association of REALTORS and the National Association of REALTORS.

Charleston Realtors association adds Lowcountry ‘watch’ list

The Charleston Trident Association of Realtors released its February home sales figures last week, reporting another month of improved sales volume and prices.

 

That’s been constant for more than a year, but the group’s latest report added something new: a “watch” list highlighting particularly strong areas in the region.

 

 

To read the entire article http://www.postandcourier.com/article/20130318/PC05/130319336/1010/charleston-realtors-association-adds-lowcountry-x2018-watch-x2019-list

 

 

 

FLOOD INSURANCE

The Senate adjourned without approving H.R. 4851, which would have extended a number of programs including the National Flood Insurance Program (NFIP). Authority for the NFIP expires at midnight on Sunday March 28, which will delay real estate transactions where a new flood policy is required but has not been issued before the expiration date. Efforts to reach bipartisan agreement between the House and Senate failed over how to pay for the broader bill. A procedural motion has been filed in the Senate setting up a vote the week of April 12th.

THE MYSTERY OF HOMEOWNER'S INSURANCE REVEALED, WELL NOT EXACTLY

Homeowner's Comparison Guide

Introduction
Homeowners insurance protects you from financial losses caused by storms, fire, theft, and other events outlined in the policy. South Carolina law does not require you to purchase homeowners insurance, but your lender may require you to have insurance if you are financing your home.

Understanding Rates
Insurance companies base your premium on factors such as the replacement cost of your home, its construction materials, the area where you live, your claims history, your credit score, and local fire protection class code.

Policy Type
Companies can sell several types of policies, each with a different level of coverage. Make sure you discuss with the agent or company, the options available to determine the policy that best fits your needs.

Before You Buy a Policy, Remember:
• In addition to cost, consider other factors, such as the company’s financial strength and complaint history.
• Coverages and limits can vary from policy to policy. Ask the agent or company for the exact coverages in the policy you are considering. Choose a policy with the coverages you need and with adequate limits to replace your house and property if they are destroyed. The amount of coverage you buy should be based on your home’s replacement (rebuilding) cost, which may be different from its market value.
• Don’t cancel a policy until you have a new policy in effect.
• Answer all questions on the application truthfully. Wrong information could result in an incorrect price quote or a denial or cancellation of coverage.

A.M. Best Rating
The South Carolina Department of Insurance requires companies to meet certain minimum financial requirements in order to be licensed to do business in South Carolina. The Department does not however provide ratings on companies. A.M. Best rates companies based upon the financial strength and operating performance of each company. Best’s ratings are subject to change and are current only as of the publication date. For current rating information, call A.M. Best at 1-908-439-2200 or visit its website at http://www.ambest.com/.

How to Find the Best Rate
• Get quotes from several companies before you buy. Include independent agents in your search. Some agents only represent a single company or company group. Independent agents may represent several companies.
• Consider higher deductibles. You can save money on your premiums by increasing your policy deductibles, but you will have to pay more out of pocket if you have a claim. You will need to have money readily available (personal savings, ability to borrow from relatives or friends, etc.) to pay your out-of-pocket expenses.
• Ask your agent about discounts. Discounts vary by company. Some companies may offer discounts if you have multiple policies with the company, an impactresistant roof, security or fire sprinkler system, a newer home, or good claims history. Other discounts may be available.

Unfair Discrimination
An insurance company cannot deny, refuse to renew, limit or charge more for coverage, or unfairly discriminate because of your race, color, religion, or national origin. A company also may not discriminate because of your age, gender, marital status, geographic location, or disability or partial disability, unless the refusal, limitation, or higher rate is based on sound underwriting or
actuarial principles. This means the company must have valid evidence that you present a greater risk for a loss than homeowners it is willing to insure. Companies may deny coverage because of the condition of the dwelling, including the plumbing, wiring, and heating and air conditioning systems.

Having Trouble Finding Insurance?
Don’t give up if a company turns you down. Continue to talk with agents in your area that represent other companies. If you are still unsuccessful in finding homeowners insurance, visit
www.doi.sc.gov/consumer or call our Consumer Services Division, a free service of the South Carolina Department of Insurance.

South Carolina Department of Insurance
1201 Main Street, Suite 1000
P. O. Box 100105 (29202)
Columbia, South Carolina 29201
803-737-6180 800-768-3467 (Toll Free Only in SC)
803-737-6231 - fax
www.doi.sc.gov
Monday through Friday
8:30a.m. to 5:00p.m.