Carolina One Real Estate on Crowfield Boulevard in Goose Creek is hosting a community event tomorrow morning, December 12, 2009, and SANTA CLAUS will be the guest of honor. Plan to arrive around 9:00 in the morning to see him ride in on a FIRE TRUCK at 9:30. Once Santa is settled kids will be able to sit on his lap and tell him all about their hopes for Christmas morning. Santa will be accepting letters from the kids as well. Pictures with Santa are available at NO COST to you. There will also be refreshments served.

This event is FREE and open to the public so bring your friends! There will be a Toys for Tots collection box for anyone who would like to donate, but there is no donation required to join in the fun.

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8. Lawrence Yun, NAR chief economist, said the momentum is understandable. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

Click here for the NAR Pending Home Sales (PHS) chart.

—From NAR member e-mail update, 11/13/09

The big buzz words in real estate right now are “short sale.” Everyone knows someone who’s bought one and gotten a great deal. So lots of folks are coming in and wanting to get in on the action. Unfortunately, most people don’t understand what they’re really getting into when they choose to pursue a short sale transaction.

There are plenty of naysayers out there who will deny, deny, and discourage you from ever attempting to buy (or sell) a short sale. However, while they’re certainly not for everyone, there are some great deals out there for the right buyers and the sellers who can convince their lenders to let them sell. If you have questions on the short sale process, I know how to get to closing. Call me, I’m happy to help.

Now here’s some current market info on Crowfield Plantation in Goose Creek, SC, along with a list of today’s short sale opportunities…

If you drive through Crowfield today you will see 100 houses on the market. Eleven of them, or 11%, are short sales. I was shocked to see that there are NO foreclosures on the market right now in this neighborhood. Homes are priced from $119,000 to $950,000 and have been on the market an average of 133 days. Note that several homes have been on the market well over a year. Average price per square foot for active listings is $112.

These are today’s short sale listings in Crowfield Plantation:

• 109 Downing
• 138 E. Hartwick
• 111 Candleberry
• 204 Challis
• 131 Chatfield
• 123 Fairhaven
• 103 Sully
• 101 Tattingstone
• 131 Dasharon
• 100 Clearview
• 127 Welchman

This is a link for more information about today’s short sale listings in Crowfield: http://ctarmls.com/CharlestonReports/ListitLib/show_report.aspx?ID=5936278968

**The link will only work while there are no changes to the listings included in this list. If one comes off the market or changes in price, the link will stop working.

Please call me for the most current short sale listings and information.

Goose Creek’s Civic Redevelopment Plan, Nov. 2008

This video outlines plans to improve and develop a central downtown area for Goose Creek, SC, with commentary by Mayor Michael Heitzler. It was posted to YouTube last fall.

About Goose Creek

This YouTube video created by City of Goose Creek gives a nice overview of the City’s history and what it’s like to live here.

Lately I’ve been working toward earning the GRI designation for real estate. (GRI stands for Graduate, Realtor Institute.) A few weeks ago I completed a class on real estate technology, where I was introduced to the Flip video camcorder.

This camera is small, easy to use, and very inexpensive. Last week I bought the camera and started using it to market my listings on YouTube. I am pleased to announce my channel is up and running! Please visit and subscribe to my channel for detailed information about Charleston area real estate offerings: http://www.youtube.com/user/agentinthecreek

As always, I look forward to and appreciate your feedback.

Last night’s presentation by Steve Harney here in Goose Creek urged anyone thinking about buying or selling real estate to do so NOW.

These are the points he made to sellers:

• While the market has shown signs of improvement (see yesterday’s post about Crowfield Plantation), forecasters predict home prices will not reach bottom nationally until May of 2010… and then it will take TWO YEARS for prices to climb back up to where they are TODAY.
• Right now a $250,000 house loses more than $400 in value per week due to massive amounts of inventory pushing prices down.
• South Carolina is #15 in the country in the number of foreclosures and home owners who are behind on their mortgages. Of the people behind on their mortgages, roughly 94% of their houses will hit the market, either as a foreclosure or short sale. The number of people behind on their mortgages is double the number of current foreclosures. Inventory seems to have leveled off and may be waning, but it’s looking like there is a new wave of distressed sales coming.
• Interest rates are being held artificially low in hopes of economic recovery. When they rise to where they should be, that rise will be dramatic and it will happen quickly. Affordability decreases when it becomes more expensive to borrow money, which means there could be fewer buyers in the market, or the buyers who can afford your house today will not be able to afford it tomorrow.
• Bottom line: If you’re thinking of selling your home, do it now and price it right. It will be several years before your house is again worth what it’s worth today.

Points for buyers:

• First-time home buyers need to find a house TODAY and get it under contract. The $8000 tax credit expires at the end of November, with no exceptions for delayed closings. Plan to allow at least six weeks to get pre-approved, find your house, write a contract, complete inspections and repairs, complete the loan, secure insurance, pack your stuff, and close the deal.
• Money is cheap. Take a look a this post to see a chart on affordability at various interest rates. Interest rates basically determine your price range. When they’re higher, your budget is lower, it’s that simple.

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Lately the news media has indicated we may be at or near the bottom of the housing market crisis nationally. Since all real estate is local, why don’t we take a look at what’s happening in Crowfield Plantation, Goose Creek, SC, as we head into the fall of 2009.

OVERVIEW
Most agree that the height of the market was at the end of 2005 (I bought my first house in December 0f 2005, how’s that for timing?). We saw a leveling off in 2006, and 2007 marked the beginning of what we now know as a spike in inventory and drop off in prices.

THE FACTS
In the summer of 2005 in Crowfield Plantation there were 107 homes sold. The median price of a single family residence was $229,000, and homes were on the market an average of 30 days. Jim Reese, our company manager, says back then if you put a sign in a yard it would sell.

Fast-forward now to our current summer, 2009. Forty homes sold with a median price of $212,900. Homes were on the market an average of 113 days. This represents a 60% decline in volume compared with the summer of 2005 and about a 7% decrease in the median price, with an increase of 83 days on the market. Essentially there are fewer homes selling for less money in more time.

These numbers shouldn’t be any surprise. We already know the market’s been challenging over the past few years. The big question now is are we starting to come out of it?

Let’s take a look at last summer’s numbers to see how this year compares.

In 2008 there were 29 homes sold with a median price of $245,000. Homes were on the market an average of 109 days. Notice that from last year to this year sales were up nearly 140% in volume. Good news, right? Sounds like it, but look at the median sales price. It came down from $245,000 to $212,900, which is a 13% decrease in price. Days on the market have increased slightly; it took four days longer to sell this summer than it did last summer.

THEORY
I believe there are several reasons for Crowfield’s decrease in median sales price and increase in sales volume. Last summer move-up buyers came into the market to take advantage of competitive pricing, large inventory and great rates, while first-time home buyers avoided the market because prices had fallen so quickly in such a short amount of time. This year the $8000 tax incentive lured first-time home buyers into the market. Those buyers became the majority of the market, which reduced the median sales price and increased the number of overall sales.

My theory is supported by the fact that actual pricing hasn’t changed that much in Crowfield Plantation from last year to this year. Last year we were averaging $106/square foot; this year it’s closer to $104/square foot—hardly a 13% decrease in price.

CONCLUSION
So the question remains: are we at the bottom of this? If we simply look at the inventory trend from the last few years, we see that it peaked in November of 2007 with 145 listings, whereas the highest inventory month in 2009 was August, with 125 listings. Obviously we can’t predict the future, but this shows us that inventory has decreased overall, activity has picked up, and as we all learned in grade school, supply and demand drive prices. If the inventory trend continues to go down and sales continue to increase and all else remains the same, prices will stabilize and then start to rise… so it’s looking like the answer is a very quiet yes.

Earlier this year a man came and talked to our company about the state of the real estate market, both locally and nationally. He showed us where the real estate market has been, where it is now, and where it may be headed in the next few years. The information he presented was straightforward, easy to understand, and ultimately somewhat reassuring. This man is coming to Goose Creek in September.

The man was Steve Harney, national speaker and creator of Keeping Current Matters, which is a monthly online report that contains real estate advice and market data interpretations. One of the things he shared with us was the Case-Shiller prediction report on pricing in the real estate industry. It showed then that prices would continue to fall through the end of 2010, with a slight uptick at the end of this year. Amazingly enough, that is exactly what is happening in our Charleston market.

Carolina One’s metro north office in Goose Creek is hosting a FREE public real estate seminar featuring Steve Harney on September 15 at 7 p.m. He will speak at the First Baptist Church on St. James Ave. in Goose Creek, where the seating capacity is 600 people. This seminar is FREE and open to the public. Anyone thinking of or working on buying or selling real estate right now should plan to attend.

Mr. Harney speaks on the necessity of being aware of the TOTAL MARKET REALITY. You will learn how to use current trends and the media to your advantage in diminishing uncertainty if you’re a buyer and educating yourself on pricing strategy if you’re a seller. You will learn to understand the information and translate it into ACTION.

These will be Steve’s talking points:

• Do today’s media headlines accurately portray the current real estate situation?
• Will the various government programs affect the local market?
• What effect will the current foreclosure situation have on local house values?
• How does the theory of the ‘Supply and Demand Curve’ apply to Charleston real estate?

As you can see, this is going to be a very informative night, one you won’t want to miss. Mark your calendar and save the date now!

Senior citizens often struggle through retirement without a steady source of income. Steady income is vital for keeping up with grocery, household, and medical bills. Many seniors are forced to choose between paying for food or medicine month after month.

One way retirees can ensure themselves a steady source of income is to take out a reverse mortgage on their home. Though the term “mortgage” implies a loan, reverse mortgages do not require home owners to make monthly payments to a bank. Instead the loan is made against the value of the borrower’s home using a portion of the home owner’s existing home equity. A reverse mortgage allows home owners aged 62 and over to convert a portion of their home equity, built over years of making mortgage payments, into available cash paid monthly to the borrower.

Seniors 62 years and older who own their home and have no mortgage may want to consider a reverse mortgage as a way to supplement their income. Seniors who have a mortgage on their home may be able to use a reverse mortgage to pay it off. In some cases a reverse mortgage can help seniors purchase more real estate, such as a second home or investment property.

Reverse mortgages are rapidly becoming a life saver for many seniors across the U.S. and has assisted thousands of retired people in sustaining the lifestyle they are accustomed to living without having to ask for money from anyone.

Other benefits of a reverse mortgage include:

1. Monthly installments received from the reverse mortgage are tax-free.
2. Seniors can stay in the luxury of your home all your life.
3. You can easily pay off all your monthly bills without asking for help.
4. Your monthly budget stays right on track.
5. As the value of your home appreciates, so can the monthly installments.

If you’re curious about reverse mortgages, please call me at 843.574.3193 or visit www.reversemortgageadvisor.com.