Sunday, March 29, 2009
Remove Point of Sale in SC.
From SCR--- (Use the main header link to take immediate action on your behalf)
No one knows better than you how point of sale assessment is affecting the real estate market, and your Representative needs to hear from you on this issue. The House of Representatives will have an opportunity to correct point of sale by passing H.3272 when it comes before the House. H.3272 was passed by the House Ways and Means Committee on March 26th and will move to the floor of the House for consideration this week.
H.3272, introduced by Representatives Cooper and Merrill, eliminates point of sale assessments and puts property tax reassessment back on the five-year cycle that existed prior to the property tax reform package that became law in 2006. Passing H.3272 and sending it to the Senate for consideration is a vital step in ensuring that point of sale is addressed this year.
Please contact your Representative immediately and urge them to support H.3272 and keep the bill moving forward. This is the single most important economic stimulus that the South Carolina General Assembly could provide for our state.
No one knows better than you how point of sale assessment is affecting the real estate market, and your Representative needs to hear from you on this issue. The House of Representatives will have an opportunity to correct point of sale by passing H.3272 when it comes before the House. H.3272 was passed by the House Ways and Means Committee on March 26th and will move to the floor of the House for consideration this week.
H.3272, introduced by Representatives Cooper and Merrill, eliminates point of sale assessments and puts property tax reassessment back on the five-year cycle that existed prior to the property tax reform package that became law in 2006. Passing H.3272 and sending it to the Senate for consideration is a vital step in ensuring that point of sale is addressed this year.
Please contact your Representative immediately and urge them to support H.3272 and keep the bill moving forward. This is the single most important economic stimulus that the South Carolina General Assembly could provide for our state.
Labels: SC Legislative Issues on Property Taxes
Friday, March 27, 2009
Lowcountry Real Estate Show
Real Estate Show Live on WTMA.com or 1250am, WTMA, Radio on Saturday Morning at 8am. This week: 10 steps to buying a foreclosure, What is the state of our market as it relates to Foreclosures? And...more helpful selling tips.
Labels: charleston and mount pleasant sc real estate.
Thursday, March 26, 2009
Investment Banking Explained! -from Anon.
Young Chuck moved to Texas and bought a donkey from a farmer for $100.�
The farmer agreed to deliver the donkey the next day.�
The next day the farmer drove up and said, 'Sorry Chuck, but I have some bad news, the donkey died.'�
Chuck replied, 'Well, then just give me my money back.'�
The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'OK, then, just bring me the dead donkey.'�
The farmer asked, 'What ya gonna do with a dead donkey?�
Chuck said, 'I'm going to raffle him off.'�
The farmer said 'You can't raffle off a dead donkey!'�
Chuck said, 'Sure I can.. Watch me. I just won't tell anybody he's dead.'�
A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'�
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of $898.00.'�
The farmer said, 'Didn't anyone complain?'�
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'�
Chuck now works for Morgan Stanley.
�
The farmer agreed to deliver the donkey the next day.�
The next day the farmer drove up and said, 'Sorry Chuck, but I have some bad news, the donkey died.'�
Chuck replied, 'Well, then just give me my money back.'�
The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'OK, then, just bring me the dead donkey.'�
The farmer asked, 'What ya gonna do with a dead donkey?�
Chuck said, 'I'm going to raffle him off.'�
The farmer said 'You can't raffle off a dead donkey!'�
Chuck said, 'Sure I can.. Watch me. I just won't tell anybody he's dead.'�
A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'�
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of $898.00.'�
The farmer said, 'Didn't anyone complain?'�
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'�
Chuck now works for Morgan Stanley.
�
Wednesday, March 25, 2009
Do we have 3,000 homes nearing foreclosure in Charleston?
(This was my response to Brad Rundbaken's email this morning from the CharlestonMarketReport.com, and his original comments below)
Brad:
I'm afraid you are correct. We do a lot of REO work for banks and we are absolutely slammed with pre-foreclsoure BPO Evaluations right now. My guess is that there are about 500 Looming Foreclosures in Mount Pleasant alone. There are three or four Mt. Pleasant high-end neighborhoods on the verge of imploding. There are probably three times that many in number, in Summerville and twice that many in the rest of Charleston County. So, that would be 3,000 exactly, right now in delinquency.
The problem is that our congressmen and Senators don't understand. You and I see it at the local level in a moderate market. They don't. D.C. doesn't have a recession, so when they dine, they're not seeing a typically full restaurant with five people in it. They're not talking to homeowners who are current on their mortgage (by the droves) that are about to throw in the keys, because they owe 30% more than it's worth; and on top of this there are tons in denial. What happens when they wake up? No matter how much all the recent moves help housing and even if our sales double to 600, 700 or even 800 homes per month in the Tri-county, that will only be enough to consume the added foreclosures that are coming. This means more of the same as an optimist, just more transactions. The Charleston County foreclosure list doubled this week.
Have you noticed, Brad, 85% of the listings on the market in the Charleston MLS are severely overpriced? Most of the people are either listening to bad advice from their Realtor or they, seriously, are waiting on the "Normal" Charleston market to return. With a lack of stated financing, a lack of buyers/confidence, I'm afraid we may have thousands more go into foreclosure by not facing the problem and dealing with it today.
On Wed, Mar 25, 2009 at 8:03 AM, wrote:
Charleston Market Report Newsletter
I went on the Rocky D show yesterday with the intent of warning my fellow Charlestonians about the problem with Tim "Tax Cheat" Geitner stealing more of our tax dollars to prop up bad banks and the increasing foreclosure problem in Charleston.
I am trying to get the Charleston community into a proactive discussion about the increasing foreclosure problem that will have a major impact on local real estate prices if it is not addressed asap. My current estimate is that there are over 3000 homes in foreclosure or short sale status that are NOT reported on the MLS. Local and national banks are often holding these properties off the market or will not sell them because they do not want to take the writedown. The local real estate industry and govenments are either not aware or ignoring the problem.
As of today no emails or calls from anyone regarding my announcement to be proactive instead of reactive to this growing problem. I guess it is business as usual in Charleston. Not good.
'Shadow' Supply Of Foreclosures May Delay Housing's Recovery
BY KATHLEEN DOLER
FOR INVESTOR'S BUSINESS DAILY
Posted 3/24/2009
Even as a few rays of hope peek out for housing, a dark cloud of unlisted and unsold foreclosed homes threatens to further delay a recovery and undermine lenders' financials.
The government is riding in with new programs almost every week, including Monday, that may rescue lenders. But they also cause paralysis in the short term.
Lenders are holding "between 600,000 and 700,000 residential properties that are not on the multiple listing service (MLS)," said Rick Sharga, senior vice president at RealtyTrac, a foreclosure listing firm in Irvine, Calif.
This shadow supply isn't counted as part of the housing inventory. There were 3.8 million existing homes on the market in February, equal to 9.7 months' worth at the current sales pace.
Add in the shadow supply and selling all the available homes will take even longer, and that suggests prices have even further to fall.
There has been some good news on the home front. February existing-home sales rose 5.1%, the best monthly gain in years. Housing starts shot up 22.2% from a record low. Low mortgage rates and falling prices have made homes more affordable — though that doesn't help if you can't get a loan or you've lost your job.
Meanwhile, foreclosure activity has been artificially suppressed. Mortgage delinquency rates have continued to soar in the last several months even as the new foreclosure rate has held steady. That's due to government moratoriums or voluntary lender halts. But most experts say eventually most of those homes will be foreclosed.
Lenders also may be understating the impact foreclosures will have on their balance sheets. And the shadow is likely to grow as more homeowners default.
Window Dressing?
Specialists who handle loan modifications for borrowers say that despite a flurry of new programs, few mortgages are being reworked.
"Lenders aren't doing anything," said Jim Richman, president and founder of Richman & Associates, a real estate and debt restructuring firm in Glendale, Calif. "They're waiting to see if the government will bail them out."
"Everybody is stalled 100%; the lenders aren't doing anything" with modifications, said Moe Bedard, president of Loan Safe Solutions, a Corona, Calif.-based firm that does mortgage auditing for attorneys.
Richman is a former banker and former Housing and Urban Development commissioner. He also believes lenders "are illegally operating under current federal rules," by not writing down their foreclosures adequately.
"Lenders are doing everything they can to stay in business, but it's against all the rules," said Richman. "(Regulators) are afraid to enforce the rules because if they do the banks will fail, and the feds will have to bail them out."
Sharga says he's spoken "directly with foreclosure attorneys in several states (including Texas, Michigan and California) to find out if any of their firms were reappraising properties" during the foreclosure process for their clients. "None did formal appraisals," he said.
Sharga says lenders have taken huge write-downs. But if they have not reappraised their foreclosures, are the write-downs adequate?
"What the banks can buy with time (holding foreclosures and not listing them for sale) is the tooth fairy," said Thomas Barrack Jr., founder, chairman and CEO of Colony Capital, a Los Angeles-based private equity firm specializing in real estate. "The government has shown that if you wait long enough, it will come out with a new program to modify the obligations of the bank and borrower. Pixie dust comes every week."
The Treasury on Monday laid out its plan to partner with private funds to buy up to $1 trillion in so-called "toxic assets." It's as-yet unclear if these purchases will include actual foreclosed properties — these programs tend to morph as they get rolled out.
"Why take a loss today if there's any chance that loss could be less (due to changes in government programs)?" said Terry McEvoy, a banking analyst with Oppenheimer & Co. in New York.
Some shadow inventory may not be listed publicly because some lenders sell foreclosures via in-house divisions, says Bedard. Or, lenders may be selling the defaulted paper to investors. But these gray market sales can't account for all unlisted foreclosed properties.
And the stalling is getting worse. "What we're seeing is slowdowns in the processing of properties throughout the foreclosure cycle . . . it's taking longer to file (default) notices, taking longer to actually foreclose and taking longer to get the properties on the market," said Sharga.
"The lenders ease their way into the losses," said Jeff Davis, senior vice president and director of research at Howe Barnes Hoefer & Arnett Inc., Chicago. "If the economy would pick up, a lot of the issues wouldn't be as problematic. But that's not happening and these issues are just compounding."
If banks dump their properties at once, it could cause dramatic price erosion in already hard-hit areas.
Home prices, which have fallen 30% or more in some areas, still have more to go, many experts say. In some areas they need to drop "another 30% to get down to 1998 normalized levels," Barrack says.
Lenders have argued before Capitol Hill to relax or suspend mark-to-market rules for valuing mortgage-backed securities. Lawmakers, in turn, have leaned heavily on the private-sector Financial Accounting Standards Board to make changes. FASB has signaled it'll modify the rule in cases where markets are illiquid. It met Tuesday to discuss the issue.
Barrack, who opposes changing the mark-to-market rules, said: "When real estate and securities were booming, the lenders were booking unbelievable earnings. Now the market is going the other way.
"They can't have it both ways," Barrack said.
Other analysts disagree. "When you mark to the market and there is no market, you're recognizing an economic loss and a loss of liquidity," instead of an actual loss, said Davis.
But he said if the underlying assets —the homes — "are collapsing in value, then there's a problem."
Brad:
I'm afraid you are correct. We do a lot of REO work for banks and we are absolutely slammed with pre-foreclsoure BPO Evaluations right now. My guess is that there are about 500 Looming Foreclosures in Mount Pleasant alone. There are three or four Mt. Pleasant high-end neighborhoods on the verge of imploding. There are probably three times that many in number, in Summerville and twice that many in the rest of Charleston County. So, that would be 3,000 exactly, right now in delinquency.
The problem is that our congressmen and Senators don't understand. You and I see it at the local level in a moderate market. They don't. D.C. doesn't have a recession, so when they dine, they're not seeing a typically full restaurant with five people in it. They're not talking to homeowners who are current on their mortgage (by the droves) that are about to throw in the keys, because they owe 30% more than it's worth; and on top of this there are tons in denial. What happens when they wake up? No matter how much all the recent moves help housing and even if our sales double to 600, 700 or even 800 homes per month in the Tri-county, that will only be enough to consume the added foreclosures that are coming. This means more of the same as an optimist, just more transactions. The Charleston County foreclosure list doubled this week.
Have you noticed, Brad, 85% of the listings on the market in the Charleston MLS are severely overpriced? Most of the people are either listening to bad advice from their Realtor or they, seriously, are waiting on the "Normal" Charleston market to return. With a lack of stated financing, a lack of buyers/confidence, I'm afraid we may have thousands more go into foreclosure by not facing the problem and dealing with it today.
On Wed, Mar 25, 2009 at 8:03 AM,
Charleston Market Report Newsletter
I went on the Rocky D show yesterday with the intent of warning my fellow Charlestonians about the problem with Tim "Tax Cheat" Geitner stealing more of our tax dollars to prop up bad banks and the increasing foreclosure problem in Charleston.
I am trying to get the Charleston community into a proactive discussion about the increasing foreclosure problem that will have a major impact on local real estate prices if it is not addressed asap. My current estimate is that there are over 3000 homes in foreclosure or short sale status that are NOT reported on the MLS. Local and national banks are often holding these properties off the market or will not sell them because they do not want to take the writedown. The local real estate industry and govenments are either not aware or ignoring the problem.
As of today no emails or calls from anyone regarding my announcement to be proactive instead of reactive to this growing problem. I guess it is business as usual in Charleston. Not good.
'Shadow' Supply Of Foreclosures May Delay Housing's Recovery
BY KATHLEEN DOLER
FOR INVESTOR'S BUSINESS DAILY
Posted 3/24/2009
Even as a few rays of hope peek out for housing, a dark cloud of unlisted and unsold foreclosed homes threatens to further delay a recovery and undermine lenders' financials.
The government is riding in with new programs almost every week, including Monday, that may rescue lenders. But they also cause paralysis in the short term.
Lenders are holding "between 600,000 and 700,000 residential properties that are not on the multiple listing service (MLS)," said Rick Sharga, senior vice president at RealtyTrac, a foreclosure listing firm in Irvine, Calif.
This shadow supply isn't counted as part of the housing inventory. There were 3.8 million existing homes on the market in February, equal to 9.7 months' worth at the current sales pace.
Add in the shadow supply and selling all the available homes will take even longer, and that suggests prices have even further to fall.
There has been some good news on the home front. February existing-home sales rose 5.1%, the best monthly gain in years. Housing starts shot up 22.2% from a record low. Low mortgage rates and falling prices have made homes more affordable — though that doesn't help if you can't get a loan or you've lost your job.
Meanwhile, foreclosure activity has been artificially suppressed. Mortgage delinquency rates have continued to soar in the last several months even as the new foreclosure rate has held steady. That's due to government moratoriums or voluntary lender halts. But most experts say eventually most of those homes will be foreclosed.
Lenders also may be understating the impact foreclosures will have on their balance sheets. And the shadow is likely to grow as more homeowners default.
Window Dressing?
Specialists who handle loan modifications for borrowers say that despite a flurry of new programs, few mortgages are being reworked.
"Lenders aren't doing anything," said Jim Richman, president and founder of Richman & Associates, a real estate and debt restructuring firm in Glendale, Calif. "They're waiting to see if the government will bail them out."
"Everybody is stalled 100%; the lenders aren't doing anything" with modifications, said Moe Bedard, president of Loan Safe Solutions, a Corona, Calif.-based firm that does mortgage auditing for attorneys.
Richman is a former banker and former Housing and Urban Development commissioner. He also believes lenders "are illegally operating under current federal rules," by not writing down their foreclosures adequately.
"Lenders are doing everything they can to stay in business, but it's against all the rules," said Richman. "(Regulators) are afraid to enforce the rules because if they do the banks will fail, and the feds will have to bail them out."
Sharga says he's spoken "directly with foreclosure attorneys in several states (including Texas, Michigan and California) to find out if any of their firms were reappraising properties" during the foreclosure process for their clients. "None did formal appraisals," he said.
Sharga says lenders have taken huge write-downs. But if they have not reappraised their foreclosures, are the write-downs adequate?
"What the banks can buy with time (holding foreclosures and not listing them for sale) is the tooth fairy," said Thomas Barrack Jr., founder, chairman and CEO of Colony Capital, a Los Angeles-based private equity firm specializing in real estate. "The government has shown that if you wait long enough, it will come out with a new program to modify the obligations of the bank and borrower. Pixie dust comes every week."
The Treasury on Monday laid out its plan to partner with private funds to buy up to $1 trillion in so-called "toxic assets." It's as-yet unclear if these purchases will include actual foreclosed properties — these programs tend to morph as they get rolled out.
"Why take a loss today if there's any chance that loss could be less (due to changes in government programs)?" said Terry McEvoy, a banking analyst with Oppenheimer & Co. in New York.
Some shadow inventory may not be listed publicly because some lenders sell foreclosures via in-house divisions, says Bedard. Or, lenders may be selling the defaulted paper to investors. But these gray market sales can't account for all unlisted foreclosed properties.
And the stalling is getting worse. "What we're seeing is slowdowns in the processing of properties throughout the foreclosure cycle . . . it's taking longer to file (default) notices, taking longer to actually foreclose and taking longer to get the properties on the market," said Sharga.
"The lenders ease their way into the losses," said Jeff Davis, senior vice president and director of research at Howe Barnes Hoefer & Arnett Inc., Chicago. "If the economy would pick up, a lot of the issues wouldn't be as problematic. But that's not happening and these issues are just compounding."
If banks dump their properties at once, it could cause dramatic price erosion in already hard-hit areas.
Home prices, which have fallen 30% or more in some areas, still have more to go, many experts say. In some areas they need to drop "another 30% to get down to 1998 normalized levels," Barrack says.
Lenders have argued before Capitol Hill to relax or suspend mark-to-market rules for valuing mortgage-backed securities. Lawmakers, in turn, have leaned heavily on the private-sector Financial Accounting Standards Board to make changes. FASB has signaled it'll modify the rule in cases where markets are illiquid. It met Tuesday to discuss the issue.
Barrack, who opposes changing the mark-to-market rules, said: "When real estate and securities were booming, the lenders were booking unbelievable earnings. Now the market is going the other way.
"They can't have it both ways," Barrack said.
Other analysts disagree. "When you mark to the market and there is no market, you're recognizing an economic loss and a loss of liquidity," instead of an actual loss, said Davis.
But he said if the underlying assets —the homes — "are collapsing in value, then there's a problem."
Labels: Charleston SC and Mount Pleasant SC Foreclosures
Tuesday, March 24, 2009
What's the deal with AIG?
Just posted - our segment on AIG, and what exactly went wrong. This segment from our broadcast on WTMA - Real Estate Show explains the crisis at its foundation:
http://housedog.com/wtma-radio-show-by-bryan-crabtree-c12907.html
http://housedog.com/wtma-radio-show-by-bryan-crabtree-c12907.html
Labels: Charleston SC Real Estate Expert and AIG - what went wrong?
Buying a Foreclosure
If you're thinking of buying a foreclosure presently owned by the Bank, you're not alone. About 40-50% of all sales in the Nation are distressed properties. And, there's a lot of foreclosure opportunities on the horizon. Here are the ten steps to take, if you plan to take advantage of this opportunity:
1. Get pre-approved with a reputable well-know lender in your city.
2. Find an agent that has sold at least 10 foreclosures in the past year.
3. Line up an inspector that can do an inspection quickly. You won't be able to ratify a contract on a foreclosure until your inspection is complete - so you'll need to have an inspector ready to act quick, and an agent who knows how to "tie down" the property while you do the inspection.
4. If the property has been listed in the past 21 days, plan to offer full price (they may pay your closing costs at full price).
5. If the property is a new listing, prepare to act in the first 24 hours. Most of our bank-owned listings sell in the first week.
6. Expect that you'll have some work to do before you can move in. Most foreclosures need paint and carpet; some even more.
7. If you are paying cash, this can sometimes help you, but make sure you have a proof of funds document to present with your offer.
8. You'll be responsible for doing your own CL-100/Termite Letter in most bank-deals and it's highly recommended.
9. Prepare for closing to take 30-45 days, as the bank has to get a final deed from the Magistrate to provide a clear title to you.
10. Expect a wait and/or a competitive situation when you're bidding. These homes are typically priced below market, so there are a lot of buyers looking at Foreclosures.
1. Get pre-approved with a reputable well-know lender in your city.
2. Find an agent that has sold at least 10 foreclosures in the past year.
3. Line up an inspector that can do an inspection quickly. You won't be able to ratify a contract on a foreclosure until your inspection is complete - so you'll need to have an inspector ready to act quick, and an agent who knows how to "tie down" the property while you do the inspection.
4. If the property has been listed in the past 21 days, plan to offer full price (they may pay your closing costs at full price).
5. If the property is a new listing, prepare to act in the first 24 hours. Most of our bank-owned listings sell in the first week.
6. Expect that you'll have some work to do before you can move in. Most foreclosures need paint and carpet; some even more.
7. If you are paying cash, this can sometimes help you, but make sure you have a proof of funds document to present with your offer.
8. You'll be responsible for doing your own CL-100/Termite Letter in most bank-deals and it's highly recommended.
9. Prepare for closing to take 30-45 days, as the bank has to get a final deed from the Magistrate to provide a clear title to you.
10. Expect a wait and/or a competitive situation when you're bidding. These homes are typically priced below market, so there are a lot of buyers looking at Foreclosures.
Labels: Foreclosures in Mount Pleasant and Charleston, SC
Market Update for March 23, 2009
This was sent to me by Jeff Doss at Bradford Mortgage (Bradford is one of our Radio Show Sponsors. Great insight into the market from today:
MBS prices are down -2/32 below the 9:45 et pricing level of unchanged, but above the low for the day of -7/32. It was a volatile session. No economic data came out today. The 2-yr Treasury auction saw strong demand, and foreign investors purchased a high 53% of the total. MBS prices moved lower after the auction, though, despite the strong results. Following Treasury markets, MBS markets reversed direction a little later when the Fed announced that it will begin buying Treasuries tomorrow, under the $300 billion program revealed last week. Treasury Secretary Geithner and Fed Chief Bernanke testified before Congress about AIG. They were seeking to establish the regulatory authority to deal with future problems at large nonbank financial institutions. The Dow fell 120 points. Tomorrow, Durable Orders and New Home Sales will be released. There will be a 5-yr Treasury auction at 1:00 et.
MBS prices are down -2/32 below the 9:45 et pricing level of unchanged, but above the low for the day of -7/32. It was a volatile session. No economic data came out today. The 2-yr Treasury auction saw strong demand, and foreign investors purchased a high 53% of the total. MBS prices moved lower after the auction, though, despite the strong results. Following Treasury markets, MBS markets reversed direction a little later when the Fed announced that it will begin buying Treasuries tomorrow, under the $300 billion program revealed last week. Treasury Secretary Geithner and Fed Chief Bernanke testified before Congress about AIG. They were seeking to establish the regulatory authority to deal with future problems at large nonbank financial institutions. The Dow fell 120 points. Tomorrow, Durable Orders and New Home Sales will be released. There will be a 5-yr Treasury auction at 1:00 et.
Labels: Charleston SC Real Estate Statistics
This week on the radio show...
This week on the Lowcountry Real Estate Show - Heard Saturdays at 8am on 1250am, WTMA or live on WTMA.com. (Also, look for new podcasts on our website this week)
On the show:
1. What does the real estate industry think of the new Treasury Plan and will it work?
2. Details of the Treasury Plan - and what it means to you.
3. More....on Foreclosures and Bank Owned Homes.
4. A recent glimmer of hope in the markets and Real Estate Activity is up - is this the end of our crisis?
5. How to find an exceptional deal when you're buying or get the highest value as a seller.
TUNE IN AND LEARN MORE!
On the show:
1. What does the real estate industry think of the new Treasury Plan and will it work?
2. Details of the Treasury Plan - and what it means to you.
3. More....on Foreclosures and Bank Owned Homes.
4. A recent glimmer of hope in the markets and Real Estate Activity is up - is this the end of our crisis?
5. How to find an exceptional deal when you're buying or get the highest value as a seller.
TUNE IN AND LEARN MORE!
Labels: charleston and mount pleasant sc real estate.
Monday, March 23, 2009
Market Update
This was sent to me by one of my sellers (written by an anonymous author) about the Charleston Real Estate Market:
Market Review
March 20, 2009
The 2009 real estate market is off to a slow start. The first two months of 2009 saw the number of Tri-Countytransactions drop 42% from the same two-month period in 2008. Since November, the number of transactions that occur each month have been roughly one
third of what they had been during the corresponding months of peak year 2006. The monthly number of transactions is roughly half of the average number of corresponding monthly transactions over the last nine years.
In January, the median price of a home sold in the Tri-County region was $177,500, down 16% from the $210,600 median price of a home sold in January of 2008. In February, the median price of a home sold in the region had climbed back $7,400 to $183,900. This $183,900 median price was 10% less than the $205,000 median price experienced in February of 2008. Expect to see a bumpy plateau of median price fluctuation between $170,000 and $210,000 in each month of 2009. This is because in any given month, there may be more discounted homes sold at the higher end of the market than there are in the low end of the market.
Take I’On for example. Below is a table showing the five homes that have closed in the neighborhood thus far in 2009.
The lowest price home - 90 North Shelmore - sold for $690,000, or 95% of the list price (87% of original list price). The highest price home – 15 Eastlake – sold for $1,135,000, or 91% of the list price (73% of original list price). The median price of the five homes sold was $1,050,000, substantially greater than the $815,000 median price of the 54 homes sold in I’On in 2008. The increase in median price was due to greater discounting at the higher end of the market. Such discounting will happen throughout the Tri-County region, but particularly in those areas like downtown Charleston and the islands that experienced the greatest price appreciation prior to the bubble bursting.
Foreclosures, short sales, and high inventory levels will continue to put downward pressure on prices in I’On and throughout the Tri-County region. Nevertheless, because of greater discounting at the high end of the spectrum, by year end I wouldn’t be surprised to see the 2009 median price for the Tri-County area near or slightly above 2008’s $205,000 median price. To reiterate, this wouldn’t necessarily mean the market improved, it would just reflect greater discounting at the higher end.
Image removed by sender.
I’On inventory. As of this writing, three homes are under contract. Normally, there are at least nine under contract this time of year. 83 homes are listed for sale. Two of these 83 listings are for homes that have yet to be started, and two more are for homes still under construction. Taking away these four, leaves 79 completed homes on the market in I’On. These 79 homes range in price from $499,000 to $2,700,000 with an average asking price of $1,100,000. They have been on the market for periods ranging from a few days to almost 4 years, with an average of 14 months.
12 of the 79 homes were recently listed (placed on the market since the beginning of the year). Of theremaining 67 placed on the market before January 1, 2009, one was listed in 2005, 10 were listed in 2006, 23 in 2007, and 33 were listed in 2008. The prices of 34 of those 67 have been reduced since January 1st. These reductions have ranged from $10,000 to $230,000. If you have a home on the market and are seriously interested in selling it, then given the state of the economy, the dearth of homes under contract, and the recent sales comparables, consider reducing the price or further reducing the price.
With the “Ides of March” just past, this famous passage from Shakespeare’s
Julius Caesar seems a timelyreminder for pricing strategy:
There is a tide in the affairs of men.
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are we now afloat,
And we must take the current when it serves,
Or lose our ventures.
Some recent good news:
1. Mortgage rates have fallen again, making home ownership even more affordable. If you haven’t refinanced your home in a while, now would be a good time to do so.
2. Ground was recently broken on four new homes in I’On. Three of those are custom homes. Now is a fantastic time to consider building a home as construction costs are the lowest they’ve been in a long time.
3. The fourth of those homes started last month will be
Coastal Living magazine’s 2009 “Idea Home.” Built by Structures on Jefferson Canal, this home will be open for tour in late summer and be featured in the October issue of the magazine. The first ever Coastal Living Idea Home was built on Sowell Street in 1998. We are proud to have been selected once again.
4. Several more homes will start over the next three months. They will be built on lots recently sold as part of the I’On Company’s Holiday Home Site Sale.
5. You may have heard the announcement of our new sales and marketing collaboration with William Means! I’On Realty is very excited about this new relationship and are proud to have them working alongside us to help sell homes in I’On.
6. Spring has returned to the Lowcountry!! Celebrate!!!
Market Review
March 20, 2009
The 2009 real estate market is off to a slow start. The first two months of 2009 saw the number of Tri-Countytransactions drop 42% from the same two-month period in 2008. Since November, the number of transactions that occur each month have been roughly one
third of what they had been during the corresponding months of peak year 2006. The monthly number of transactions is roughly half of the average number of corresponding monthly transactions over the last nine years.
In January, the median price of a home sold in the Tri-County region was $177,500, down 16% from the $210,600 median price of a home sold in January of 2008. In February, the median price of a home sold in the region had climbed back $7,400 to $183,900. This $183,900 median price was 10% less than the $205,000 median price experienced in February of 2008. Expect to see a bumpy plateau of median price fluctuation between $170,000 and $210,000 in each month of 2009. This is because in any given month, there may be more discounted homes sold at the higher end of the market than there are in the low end of the market.
Take I’On for example. Below is a table showing the five homes that have closed in the neighborhood thus far in 2009.
The lowest price home - 90 North Shelmore - sold for $690,000, or 95% of the list price (87% of original list price). The highest price home – 15 Eastlake – sold for $1,135,000, or 91% of the list price (73% of original list price). The median price of the five homes sold was $1,050,000, substantially greater than the $815,000 median price of the 54 homes sold in I’On in 2008. The increase in median price was due to greater discounting at the higher end of the market. Such discounting will happen throughout the Tri-County region, but particularly in those areas like downtown Charleston and the islands that experienced the greatest price appreciation prior to the bubble bursting.
Foreclosures, short sales, and high inventory levels will continue to put downward pressure on prices in I’On and throughout the Tri-County region. Nevertheless, because of greater discounting at the high end of the spectrum, by year end I wouldn’t be surprised to see the 2009 median price for the Tri-County area near or slightly above 2008’s $205,000 median price. To reiterate, this wouldn’t necessarily mean the market improved, it would just reflect greater discounting at the higher end.
Image removed by sender.
I’On inventory. As of this writing, three homes are under contract. Normally, there are at least nine under contract this time of year. 83 homes are listed for sale. Two of these 83 listings are for homes that have yet to be started, and two more are for homes still under construction. Taking away these four, leaves 79 completed homes on the market in I’On. These 79 homes range in price from $499,000 to $2,700,000 with an average asking price of $1,100,000. They have been on the market for periods ranging from a few days to almost 4 years, with an average of 14 months.
12 of the 79 homes were recently listed (placed on the market since the beginning of the year). Of theremaining 67 placed on the market before January 1, 2009, one was listed in 2005, 10 were listed in 2006, 23 in 2007, and 33 were listed in 2008. The prices of 34 of those 67 have been reduced since January 1st. These reductions have ranged from $10,000 to $230,000. If you have a home on the market and are seriously interested in selling it, then given the state of the economy, the dearth of homes under contract, and the recent sales comparables, consider reducing the price or further reducing the price.
With the “Ides of March” just past, this famous passage from Shakespeare’s
Julius Caesar seems a timelyreminder for pricing strategy:
There is a tide in the affairs of men.
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are we now afloat,
And we must take the current when it serves,
Or lose our ventures.
Some recent good news:
1. Mortgage rates have fallen again, making home ownership even more affordable. If you haven’t refinanced your home in a while, now would be a good time to do so.
2. Ground was recently broken on four new homes in I’On. Three of those are custom homes. Now is a fantastic time to consider building a home as construction costs are the lowest they’ve been in a long time.
3. The fourth of those homes started last month will be
Coastal Living magazine’s 2009 “Idea Home.” Built by Structures on Jefferson Canal, this home will be open for tour in late summer and be featured in the October issue of the magazine. The first ever Coastal Living Idea Home was built on Sowell Street in 1998. We are proud to have been selected once again.
4. Several more homes will start over the next three months. They will be built on lots recently sold as part of the I’On Company’s Holiday Home Site Sale.
5. You may have heard the announcement of our new sales and marketing collaboration with William Means! I’On Realty is very excited about this new relationship and are proud to have them working alongside us to help sell homes in I’On.
6. Spring has returned to the Lowcountry!! Celebrate!!!
Labels: Charleston SC Real Estate Statistics
Sunday, March 22, 2009
AIG? Should we keep bailing them out?
AIG has $1.7 Trillion in exposure to the declining housing market. We've put $170,000,000,000 into AIG at this point. The problem, they've invested in so many derivatives that if we don't continue to prop them up, several more banks will fail as a result. Listen to our March 7 Podcast in the third segment for more on this issue:
http://housedog.com/wtma-radio-show-by-bryan-crabtree-c12907.html
http://housedog.com/wtma-radio-show-by-bryan-crabtree-c12907.html
Labels: Charleston Mount Pleasant Real Estate Topics
Resources for Charleston SC.
We service the Charleston SC area for Real Estate Services. If you are looking for Charleston SC Real Estate, Mount Pleasant SC Real Estate, Summerville SC Real Estate including bankowned and foreclosed homes, then visit our website at Housedog.com. This blog offers information and commentary relative to the radio show that we host on WTMA Radio in Charleston SC.
Labels: Charleston SC and Mount Pleasant SC Real Estate
Great Lending Program for Teachers
Here is a great lending program for teachers. I found this from one my Charleston, SC clients who had asked about it. The Palmetto Hero Program:
Here are some features of this special mortgage program :
*
30 Year fixed rate of 5.875%
*
Up to $7,000.00 in Forgivabe Down payment Assistance available.
*
Loan amount up to $284,050.00
* The amount of down payment assistance, income limitations and loan amount is dependent on county of residence.
* Loans are on a first come first serve basis and the program is limited to $20 milion dollars.
Here are some features of this special mortgage program :
*
30 Year fixed rate of 5.875%
*
Up to $7,000.00 in Forgivabe Down payment Assistance available.
*
Loan amount up to $284,050.00
* The amount of down payment assistance, income limitations and loan amount is dependent on county of residence.
* Loans are on a first come first serve basis and the program is limited to $20 milion dollars.
Labels: Charleston SC Real Estate
Charleston and Mount Pleasant SC Real Estate
HOUSEDOG.COM - we provide you with a resource for all Charleston SC Foreclosures and surrounding cities.
Labels: charleston and mount pleasant sc real estate.
Radio Show and Podcast
Don't forget to listen to our Charleston Real Estate Radio show each Saturday on 1250am, WTMA in Charleston at 8am. Or live on WTMA.com. You can also subscribe to our podcast via Itunes - or just visit our website (About Us).
http://www.housedog.com
http://www.housedog.com
Labels: charleston and mount pleasant sc real estate.
Obama's Tax Policy
Taxes Two Step
Chief among the concerns is the White House's tax policy.
On one hand, tax cuts on 95 percent of households may sound good, but are so small they are unlikely to more than soften the pain of the downtown.
Some 95% of American families at lower income levels will share about $770 billion in new tax breaks through 2019.
In particular, the stimulus package provides tax cuts of roughly $400 for individuals and $800 for couples.
Compare that to the rebate checks under the 2008 stimulus plan, which worked out to $600 per person and $1,200 per family, plus $300 dollars per child. They barely made a dent in the economy, with economists estimating as much as 40-percent directed to savings rather than spending.
“It’s not sufficient,” says Richard Hastings, who follows the consumer sector for Global Hunter Securities. “At this level you’d have to wait a year and a half to see anything.”
What’s more, the long-term Reagan and Bush administration tax cut measures involved a broad range of income groups and spared taxpayers far more money, but were still subject to a lag affect of a year or so.
Meanwhile, the White Houses’ budget proposal to hike taxes on the two top income groups (covering 3 million households), as well as capital gains rates, though not intended to take effect until 2011, will arguably begin to depress consumer spending even before that time.
As proposed under the $3.6 trillion-budget blueprint, rates will rise from 33 percent to 36 percent and 35 percent to 39.6 percent, respectively, generating $637 billion.
Chief among the concerns is the White House's tax policy.
On one hand, tax cuts on 95 percent of households may sound good, but are so small they are unlikely to more than soften the pain of the downtown.
Some 95% of American families at lower income levels will share about $770 billion in new tax breaks through 2019.
In particular, the stimulus package provides tax cuts of roughly $400 for individuals and $800 for couples.
Compare that to the rebate checks under the 2008 stimulus plan, which worked out to $600 per person and $1,200 per family, plus $300 dollars per child. They barely made a dent in the economy, with economists estimating as much as 40-percent directed to savings rather than spending.
“It’s not sufficient,” says Richard Hastings, who follows the consumer sector for Global Hunter Securities. “At this level you’d have to wait a year and a half to see anything.”
What’s more, the long-term Reagan and Bush administration tax cut measures involved a broad range of income groups and spared taxpayers far more money, but were still subject to a lag affect of a year or so.
Meanwhile, the White Houses’ budget proposal to hike taxes on the two top income groups (covering 3 million households), as well as capital gains rates, though not intended to take effect until 2011, will arguably begin to depress consumer spending even before that time.
As proposed under the $3.6 trillion-budget blueprint, rates will rise from 33 percent to 36 percent and 35 percent to 39.6 percent, respectively, generating $637 billion.
Labels: charleston and mount pleasant sc real estate.
Banks Re-enter Jumbo Loan Territory
Bank of America is among the major banks rolling out jumbo mortgage programs and holding the loans in their own portfolios.
It will offer loans from $730,000 to $1.5 million with 30-year fixed rates under 6 percent; but borrowers must make a 20-percent down payment, have good credit, provide proof of income, and hold six months' of principal, interest, property tax, and insurance payments in reserve.
Other banks offering jumbo loans include ING Group's ING Direct unit and Luxury Loans of San Diego.
This is a good thing for our jumbo market over $417,000 loan Amount. The above post is courtesy of CNBC.com which has great news and commentary on the financial markets.
To view all bank owned and foreclosed homes in the Charleston and Mount Pleasant SC area, click on http://www.housedog.com
It will offer loans from $730,000 to $1.5 million with 30-year fixed rates under 6 percent; but borrowers must make a 20-percent down payment, have good credit, provide proof of income, and hold six months' of principal, interest, property tax, and insurance payments in reserve.
Other banks offering jumbo loans include ING Group's ING Direct unit and Luxury Loans of San Diego.
This is a good thing for our jumbo market over $417,000 loan Amount. The above post is courtesy of CNBC.com which has great news and commentary on the financial markets.
To view all bank owned and foreclosed homes in the Charleston and Mount Pleasant SC area, click on http://www.housedog.com
Labels: charleston and mount pleasant sc real estate.
Active Rain is a joke!
Have you ever wondered what the point of Active Rain is? Yes, it's a tool for networking with Realtors, but for what? I've been doing this site for sometime and have finally decided, this is it. It's a waste of time. My website has referred more people to active rain, than it has referred to my website. Why do we, as Realtors, do this to ourselves? We all jump on the Trulias, Active Rains and the like and post all of our information allowing them to take control (or take a slice) of our industry. In my opinion, our consumers don't find Active Rain useful. In fact, my research has shown that the average consumer stays on this site and our blogs for just a few seconds and then exits the site.
And, just for those of you who are thinking of advertising or spending money with Localism, don't. My web analytics showed that ZERO people actually visited my site as a result of that ad (except me clicking on it to see if it worked).
I hate to "rain" on the parade here, but the whole idea of us posting and blogging and commenting on blogs just to get points on a site that is mostly read by Realtors is useless. What's the point? Networking? Okay, I give you that. But wouldn't we be better served on a serious/real blogging program like Google's Blogger or if we spread our messages as Realtors all over the web instead of in this one forum that is predominantly read by Realtors? I won't discount that some consumers read these things, but 100% of the hundreds of comments I've had and my wfie has had on our blog posts have been other Realtors doing it just to get the points. And, I'm confident, those points won't lead to a sale.
For me, Active Rain has been an unproductive waste of good prospecting time. I'm moving on. Good luck in your careers!
And, just for those of you who are thinking of advertising or spending money with Localism, don't. My web analytics showed that ZERO people actually visited my site as a result of that ad (except me clicking on it to see if it worked).
I hate to "rain" on the parade here, but the whole idea of us posting and blogging and commenting on blogs just to get points on a site that is mostly read by Realtors is useless. What's the point? Networking? Okay, I give you that. But wouldn't we be better served on a serious/real blogging program like Google's Blogger or if we spread our messages as Realtors all over the web instead of in this one forum that is predominantly read by Realtors? I won't discount that some consumers read these things, but 100% of the hundreds of comments I've had and my wfie has had on our blog posts have been other Realtors doing it just to get the points. And, I'm confident, those points won't lead to a sale.
For me, Active Rain has been an unproductive waste of good prospecting time. I'm moving on. Good luck in your careers!
