Area home sales picking up steam
By JOSH McCANN
jmccann@islandpacket.com
843-706-8145
Published Saturday, April 24, 2010
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Area home sales picked up steam in the first quarter of 2010 compared to the same period a year ago, according to the latest data from the state Realtors association.
Although average prices remain depressed, local real estate agents welcomed the momentum for their business, a driving force of the local economy that has suffered during the recession.
"It's not like it was in '05, but it's better than it was last year," said Charles Sampson, president of the Hilton Head Area Association of Realtors.
For the quarter, sales of homes and condominiums in the Hilton Head Island Multiple Listing Service area increased 63.8 percent -- from 320 to 524 -- compared to the same period in 2009. Sales were up 36.7 percent -- from 150 to 205 -- in the Beaufort MLS.
In March, sales increased more than 70 percent in Beaufort's MLS and more than 40 percent in Hilton Head's.
After waiting, in some cases for years, to get the best deal as prices continued to fall, prospective buyers are realizing the market might have bottomed out and are taking action, said Edward Dukes of Lowcountry Real Estate in Beaufort.
"It's not just looking," he said.
Warmer weather, favorable interest rates and federal tax credits have coaxed people to buy, said Sampson of Charter I. Many are scooping up properties through foreclosures or short sales -- an agreement between a lender and an owner to sell a home for less than is owed on a mortgage, he said.
After suffering through an especially cold winter elsewhere, some might have decided to move South sooner than they had planned, Sampson said. For them, Hilton Head still offers the same beach, cultural organizations and quality of life as it did when the market was "red hot" a few years ago, he said.
Sales could suffer when the tax credit expires -- homes must be under contract by Friday to qualify -- but Sampson hopes changes intended to smooth the short-sale process might "pick up the slack."
Ongoing unemployment, commercial mortgage problems and more foreclosures could still weigh down the national economy, however.
"It's too early to say we're out of the woods," he said.
But if nothing derails sales, it shouldn't be long before prices rebound, too, Dukes said.
"Then we can start building some appreciation again," he said
No Flood Insurance? No Problem! Home Sales Go On
Published: Wednesday, 31 Mar 2010 | 1:16 PM ET Text Size By: Mark Koba
Senior Editor
Worries over a lack of funding for the government's home flood insurance program have receded—for now.
AP
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Home buyers who need flood insurance can go ahead with closings even if they haven't actually purchased a policy.
That's because federal banking regulators issued a statement through Freddie Mac Tuesday, saying "lenders can continue to originate loans on flood-prone properties despite a temporary shutdown of the National Flood Insurance Program."
Congress left for its Easter recess last week without re-newing the flood insurance program's funds, leaving thousands of homeowners more than a little concerned over what to do. The funding expired on Sunday.
"This is certainly good news," says John Prible, vice president of Federal government relations at the Independent Insurance Agents and Brokers of America. "Home buyers just have to put a system in place so that as soon as Congress extends the program, they have the paper work ready to buy the insurance. Home closings are not at risk."
Prible says he expects Congress to put the funds back in the program when it returns on April 12.
"We fully expect the program to get back to where it was in terms of funding," adds Prible. "That includes their promise of making it retro-active for home buyers and policy renewals during this time."
Prible says the only problem is for those needing renewals during the next two weeks. "Renewals can't go through at this point but they should be covered when Congress comes back and votes the funding to cover this period," says Prible. "People just have to wait it out."
Many home buyers are required to purchase flood insurance and the National Flood Insurance Program or NFIP provides coverage when private companies do not. It's purchased through an insurance company and provides more than 95 percent of US flood coverage.
The House passed an extension on March 17, but it stalled in the senate when Senators Jim Bunning (R-KY), Jim DeMint (R-SC) and Tom Coburn (R-OK) objected to the funding's tie in with jobless benefits and other federal programs. They say it would add to the public debt.(Calls to their offices were not returned.)
But Senate Majority Leader Harry Reid (D-NV) has said he promises to bring the matter to a vote when Congress returns.
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Some $100 billion is targeted for the refunding. That's includes paying off the $20 billion debt the NFIP has from claims coming from Hurricanes Katrina and Rita in 2005.
Started in 1968, the NFIP has had to face several funding votes in recent years. The next extension would be the fourth one since funding expired on September 30th of last year.
Prible says its time Congress took a longer view on the issue.
"This really has to stop," Prible argues. "It gets weary and homeowners get caught in the middle. It's not good for the housing market. Congress should just plain extend the program on a long term basis
Home sales soar, prices fall in Beaufort, Hilton Head Island
By CASSIE FOSS
cfoss@islandpacket.com
843-706-8125
Published Tuesday, March 23, 2010
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For two consecutive months, home sales have risen dramatically in the Hilton Head Island Multiple Listing Service area.
Sales in the eight-county MLS region increased 103 percent in January compared to January 2009 and took a 64-percent jump in February from February 2009, according to areport Tuesday from the S.C. Realtors trade group.
The Beaufort MLS area has also experienced two months of increases, with a 4.9-percent increase in January and a 15.9-percent jump in February.
Those numbers point to a residential real estate market that slowly is recovering, a trend area Realtors and industry professionals say is because of low interest rates, federal tax credits for home buyers and low prices.
But as prices in the area fall and homes continue to come on the market -- in part because of a large number of foreclosures and short sales -- the local industry will not fully recover this year, said Todd McDaniel, president of the Beaufort County Association of Realtors.
"I'm encouraged by the numbers, but demand probably won't outpace supply for a time, possibly for between 18 months and two years," McDaniel said. "I don't think we'll see a substantial turn downward, but those two lines won't probably cross until early 2012. We're heading in the right direction, though."
Wallace Thomas, a Realtor with Century 21 Carolina Realty in Beaufort, said foreclosures are driving prices down. The median price in the Hilton Head area is down 25 percent in February to $215,000, while Beaufort's median price dropped 11.9 percent to $148,000, according to S.C. Realtors.
"We're getting good activity, but we're not getting the prices we want," Thomas said. "What's hurting us is the large volume of homes that were built in the Bluffton area. People can buy a larger foreclosure home with a two-car garage for way less."
A federal tax credit of $8,000 for first-time home buyers boosted sales in the region last fall, said Charles Sampson, a Realtor with Charter One North and president for the Hilton Head Area Association of Realtors. With the tax credit extended until the end of April and expanded to buyers who have not purchased a home in five years, people are rushing to take advantage of the credits.
"Interest rates are still good, and hopefully, we'll see sales continue through the end of April," Sampson said. "But a new wave of foreclosures threatens the market. Prices are still adjusting downward, and we're not sure whether we've hit the bottom yet."
Some industry professionals, however, are wondering what will happen when the tax credit expires April 30 -- and if there is a rise in interest rates, which have been below 5 percent for a 30-year mortgage recently.
"Have the federal programs stabilized the market enough so that when they end the markets can be self-sustaining? That's the question we're trying to answer," S.C. Realtors executive director Nick Kremydas said.
Tom Jackson, a Realtor at Gateway Realty in Bluffton, said the tax credits and short sales -- an agreement between the lender and an owner to sell a home for less than what is owed on the mortgage -- have been great incentives for buyers looking in Bluffton.
"There are a lot of short sales in our market, which takes a lot more effort and time, but it's bringing in buyers," he said. "Every little bit helps."
Home sales soar in November, compared to November 2008
By KRISTY EPPLEY RUPON
The (Columbia) State
Published Thursday, December 17, 2009
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A tax credit helped boost November home sales in northern Beaufort County 126 percent from November 2008 and in the larger Hilton Head area, 123 percent. Statewide, sales increased 63 percent in November over the past year, according to a report released Thursday.
But dismal sales in the first half of the year have dragged down year-to-date sales 10 percent, according to data from the S.C. Realtors trade group. However, in the Hilton Head area, which includes eight counties, sales were up 1.3 percent. In northern Beaufort County, sales year-to-date were down 2.2 percent from the same period in 2008.
Last month, the median price of homes that sold in northern Beaufort County fell 5.1 percent to $187,000, compared to the state average that slipped 5.9 percent to$138,000 from a year ago. In the large Hilton Head area, home prices shot up 7.8 percent to $275,000 from November 2008.
"November was probably the worst month that we got hit with last year," said Nick Kremydas, chief executive of the trade group.
He called the last three months of 2008 -- when sales were down 29 percent statewide -- "one of the darkest fourth quarters we've ever seen."
But Kremydas said the past few months of this year have been "pretty amazing." Home sales started increasing in September as more homebuyers swooped in before a tax credit was scheduled to end Nov. 30.
November's gain was the culmination of buyers jumping to take advantage of an $8,000 credit for first-time home buyers. Now, Congress has extended the credit to next spring and added a $6,500 credit for longtime homeowners.
Sales in almost every region in South Carolina -- particularly along the hard-hit coast -- spiked in November.
The only blip was in Cherokee County, where sales declined 24 percent. The tiny territory saw 19 sales in November, compared to 25 last November.
Kremydas said early indicators show December's sales also will be strong, but he doesn't know if it will be enough for the state to break even with last year's sales. He expects 2010 to be better than the past two dismal years.
SALES
Nearly every region in S.C. saw a massive increase in home sales in November.
