Myrtle Beach Real Estate Market for June 2013

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

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

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

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

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

Current Mortgage Interest Rates

Here are the current rates from one local lender:

30 yr fixed 4.375% purchase; 4.625% refinance

20 yr fixed 4.125% purchase; 4.25% refinance

15 yr fixed 3.50% purchase; 3.625% refinance

10 yr fixed 3.375% purchase; 3.625% refinance

Existing Home Sales Nationwide

The National Association of Realtors has just published an article about existing home sales which shows strong gains across the country. Here's the link:

http://economistsoutlook.blogs.realtor.org/2013/06/28/existing-home-sales-by-price-category/

Current Mortgage Interest Rates

Current interest rates for Grand Strand mortgages:

30 yr fixed 4.125% purchase; 4.375% refinance

20 yr fixed 3.875% purchase; 4.125% refinance

15 yr fixed 3.25% purchase; 3.50% refinance

10 yr fixed 3.125% purchase; 3.50% refinance

Grand Strand Market Report for May 2013

The residential real estate market continues to improve, for both single family homes and
condos.  Here is the summary from SiteTech Systems:

"After a strong start in 2013, Single Family Residential (SFR) sales continued its
momentum as May’s performance was the best May since 2006. During May,
SFR sales topped 473 homes which is an 18.3% improvement from 2012 and a
47.4% improvement from 2011. May’s performance was the best single month
of sales since June 2006. Year-to-date (YTD), SFR sales are up 21.1% from 2012
levels. In addition to strong SFR sales, the median sales price of SFRs was
$190,000, the best monthly performance since Q3 2010. The improvement in
sales price was driven by fewer distressed sales. YTD, the median sales price is
up 5.03% for the year. As SFR sales continue to grow, more homes are coming
back onto the market. During May, the inventory of home for sales continued
its seasonal rise and is up 5.6% from prior year levels. It is anticipated that the
inventory has peaked and will begin its seasonal decline in June. Offsetting the
growth in SFR inventory, the inventory of distressed homes for sale continued
to decline and is now 31.1% below its prior year level. For condos, the
inventory continues it slow decline and the current inventory is down 10.8%
from May 2012 and distressed inventory is sharply down 39.3% over the last
year. During May, condo sales declined slightly from 2012 and remain up 6.8%
for the full year. The median sales price for condo rebounded in May to
$110,500. This improvement was driven by fewer distressed sales. YTD, the
median sales price of condos remains flat to 2012 levels at
$105,000. Residential lot sales rebounded in May and full year sales are in line
with 2012 performance. Similar to SFR and condos, the median sales price of
residential lots improved in May and the YTD sales price is now up 17.8% from
2012."

Read the entire report at:
Grand_Strand_Market_Report May 2013

Should You Get a Reverse Mortgage?

You can't turn on the TV these days without seeing some worn out actor or former politician pitching reverse mortgages as if they they are a great deal for seniors. Well, maybe.

Some big lenders have pulled out of the reverse mortgage business--Wells Fargo and Bank of American, but plenty of other lenders remain, so if you want one, you'll have no trouble finding a lender.  Why? Because they are highly profitable for the lender, but perhaps not such a good deal for the borrower; they have steep up front fees.

Only get one if you:

• Have equity in your home and no way of paying your bills other than selling your home and living on the proceeds
• Can pay the property taxes and home owners insurance bills from now until you die with or without the money you're getting from the reverse mortgage.

With a reverse mortgage, only available to those 62 years young, you get to cash out most of your equity and keep your house.  The bank pays you the value of your house either in a lump sum or fixed monthly payments both of which are based on formulae taking into account your home's current value, current interest rates and your age.

Since you don't pay back a reverse mortgage, you don't have to prove income--the reverse mortgage is your future income.  If you take the lump sum and spend it, you get to stay until you die, but if you don't pay your property taxes the bank will and then they'll foreclose.  If you don't pay your insurance, the bank will buy a policy for you and expect you to pay for it, but if you can't, the bank will seek permission from HUD to foreclose.

So before you sign up for a reverse mortgage, make sure you'll be able to pay your property taxes and insurance in the future and allow for inflation, as they always go up, not down.  Here, along the South Carolina coast, expect substantial increase in windstorm and flood insurance.

A reverse mortgage can be a blessing if your retirement income isn't enough, just be sure you can always pay your taxes and insurance no matter what.

Current Mortgage Rates for Grand Strand Borrowers

Here's what one local lender is offering, but always shop around:

30yr fixed 4.125% purchase; 4.375% refinance

20 yr fixed 3.875% purchase; 4.125% refinance

15 yr fixed 3.25% purchase; 3.50% refinance

10 yr fixed 3.00% purchase; 3.25% refinance

Mortgage Interest Rates Move Higher

According to the Mortgage Bankers Association, for the week ended May 31st, the average contract interest rate for a 30 year fixed rate mortgage was 4.07% the highest since April 2012.  

Housing Recovery Picks Up Speed

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

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

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

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

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

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

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

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

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

Garden City Beach & Murrells Inlet Real Estate Update for April 2013

For the update, just click

GRAND STRAND MARKET REPORT April 2013

Here's the mostly good news from Site Tech Systems:

Single family homes sales are up in April, 31.5% from last year; year to date sales are up 19.5% from 2012. The median sales price shows signs of stabilization, up 3.1% from 2012.  However, as the number of sales climbs and prices stabilize, more homes are coming on the market, inventory is about 6% above last year and will probably continue to grow in May.  Increasing inventory tends to keep prices down, but fewer available homes are distressed inventory (homes in some stage of foreclosure) which is good as distressed home sales tend to put downward pressure on prices.

Condo sales, both in number and median price remained flat with 2012 and inventory continues to decline, both overall and distressed, which over the next few months should help prices.

Much better news for sellers and for buyers, time to take action.

Read the entire report at:

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

FLOOD INSURANCE Changes and Increases

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

Flood insurance is almost never included in your homeowners insurance.

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

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

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

Garden City / Murrells Inlet - Real Estate Update - March 2013

For the Garden City/Murrells Inlet Report for March 2013:

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

Grand Strand Real Estate Activity March 2013

Here's the March 2013 Report from SiteTech Systems:

"Solid First Quarter for Grand Strand Real Estate Activity

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

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

For the full report:

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

Myrtle Beach Real Estate Market, February 2013

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

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

and rebounded sales price led a strong February.

Single Family Residential (SFR) sales activity remained strong as 

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

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

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

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

continue to decline and now represent a declining share of the 

total listing inventory. SFR median sales price rebounded from 

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

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

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

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

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

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

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

improvement was in both distressed and non-distressed 

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

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

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

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

For the full report, click:

Grand Strand February Market Report 2013

Sellers: Does Your House Compete ONLINE?

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

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

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

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

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

5 Aesthetic Issues That Turn Off Buyers

Fixing these issues before listing can mean a fast sale and boost price:

Thinking of selling?  Take on these projects before listing for a big difference in how fast your home sells and for how much.  

Thinking of buying?  Look for the owners who didn't bother to fix the easy stuff and offer accordingly.

1  Overgrown landscaping.  Curb appeal sells and you've only got seconds as buyers drive by.  Do it yourself or hire it done and while you're at it, add a few flowers.

2  Ugly paint, inside and out.  Outside: power wash and touch up at a minimum.  Inside: neutral colors sell best and paint is cheap.  If you're sure you don't need to repaint, then make sure to clean around light switches, door knobs and such.  Wash the windows, too.

3  Mirror walls.  Take them down immediately and fix and repaint as required.  'nough said.

4  Wallpaper and paneling.  Chances are your taste in wall paper, no matter what, isn't your buyer's. Take it down and paint in neutral colors. Paneling is tricky. Real wood paneling is surprisingly expensive and may just need cleaning or refinishing. Real wood paneling probably isn't hiding problem walls; panel board probably is; take it down and fix them now.

5  Closet doors and interior doors.  Make sure they all fit, work and are clean--no dust and fingerprints. Replace missing doors and if you have beads to go with the mirror walls, you know what to do. Gone.

Grand Strand Economic Report 4th Quarter 2012

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

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

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

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

Read the entire report at:

Grand Strand Economic Report 4th Quarter 2012

Pre-Approval versus Pre-Qualified....

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

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

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

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

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

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

Grand Strand 2012 Market Report

The Grand Strand Market Report is out--here's a quick summary:

Nationally late 2012 appears to be the turn around for the real estate market and the Grand Strand is tracking along, perhaps a few months later.  

• Property sales are up by double digits over 2011
• Inventory (number of properties for sale) continues to decline
• Distressed inventory (short sales and foreclosures) continues to fall
• Single family homes sales were up 18.1% over 2011; condos up 11.7%
• For 2012 median home prices was $168K down 2.6% from last year; condos, $104K a 3% drop
• Both home and condo prices were up in December benefiting from declining inventories and low interest rates.

The big picture:  inventories are declining, number of sales are up, prices are trending up, read the full report here:  Grand Strand MarketReport, December 2012