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Horizon 2010: Real estate prices to stabilize
Sunday, Feb. 21, 2010
By Adva Saldinger - The Sun News
The worst is over in the Grand Strand real estate market, with 2010 bringing continued sales increases and price stabilization, according to industry professionals.
"I think it's just going to be a slow uphill climb the rest of the year to get back to the levels of a balanced market," said Alex Holbert, the president of the Coastal Carolinas Association of Realtors. "We had a strong start to the year, which I hope is not an anomaly. On balance, I think we'll come out better than last year."
After a rough start in 2009, residential home sales finished up 3 percent and condominium sales finished up 7 percent for the year, according to the Multiple Listing Service. "[Sales] got so bad a year ago that it has to get better," said Tom Maeser, a real estate analyst with the Realtor association.While the real estate market has improved, it will not continue on that path until businesses start hiring and the double-digit unemployment rate drops, he said. If interest rates continue to stay low and banks ease lending standards a bit, then things may look up, Maeser said. And the home buyer tax credit, which helped jump-start sales in 2009 and was extended to the spring, will be another factor influencing sales in 2010.
"I still think we're going to be one of the first recovering areas and recover quickly if those things happen because we have a pent-up demand," he said.
The number of properties on the market has been declining, which is a good sign and could help lead to a stabilization of prices, Maeser said.
"The only time we're going to see a recovery in average sales price is if we get rid of the short sales and foreclosures," he said.
Short sales will persist.
Short sales, which have become popular as homeowners are struggling to keep their homes, occur when a seller tries to avoid foreclosure by negotiating with the lender to sell the property for less than the amount owed on the mortgage.
The number of short sales will likely increase this year, said Greg Harrelson, the owner of Century 21 The Harrelson Group.
"It's not that there's that many more people in trouble," he said. "It's really consumer awareness that it is an option."
The number of foreclosures may drop a bit but will stay at an elevated number, Harrelson said. The number of short sales and foreclosures are causing prices to decline.
"We still see a little bit of downward pressure because of short sales," Harrelson said. "At the end of the year, my personal thought is we may see some sort of stabilizing."
The median price - the price at which half of properties sold for more and half sold for less - for single-family homes was down 12 percent to $175,000 in 2009. The median condo price dropped 19 percent to $128,000 last year, according to the MLS.
"You're still going to see some good deals, but you're going to see a general firming up of prices," said Rod Smith, the director of general brokerage at Coldwell Banker Chicora. "I honestly believe that we are going to see a slow and steady increase in the number of sales and we're going to see a slow and steady stabilization in prices."
Financing properties
The consensus is that the market has hit the bottom, and that is translating into more interest from potential buyers, he said. One of the biggest remaining issues is the strict regulations buyers are facing when they try to get a loan so they can buy a property, Smith said.
"Lenders have money to lend, not under the same scenarios that we had them two years ago, but there is money available to borrow," said Rhonda Marcum, the executive director of the Mortgage Bankers Association of the Carolinas.
There will continue to be relatively strict requirements for borrowers, who must have good credit scores and a large down payment, she said. The criteria bankers used a few years ago were not strict enough, as is evident with the number of delinquencies and defaults during the past couple years, Marcum said.Borrowers may have more difficulty getting loans along the Grand Strand because many of them are buying second homes or investment properties.
"For investment and second homes it is tougher than it's ever been. The potential purchaser is going to have more invested... I don't see that going away in 2010 or 2011," Marcum said.
The challenges in getting financing, especially for second homes and investment properties, have fueled a surge in cash sales.
Last year, 37 percent of all Grand Strand real estate sales were cash, the largest percentage in at least 15 years, with 52 percent of transactions paid for with conventional financing and 11 percent with other forms of financing such as a Federal Housing Administration or Veterans Administration loan, according to the MLS.
Many of Radha Herring's buyers are bringing cash to the table. Herring, the broker-in-charge of the Watermark Real Estate Group, works with a lot of investors and people looking to buy oceanfront condos.
Those cash buyers are helping drive prices further down, because there is a limit to how high a price people can pay in cash, she said.
Sales will continue to rise
While Herring said prices will continue to fall, she expects sales will continue to rise, based on the number of inquiries Watermark received in January.
Other real estate agents across the Grand Strand are receiving more calls, e-mail queries and showings.
"I feel that we're going to see an increase in traffic, that's people looking, which they've been reluctant to do," said Chuck Houseman of The Litchfield Co.
He said that Georgetown County and the south end have not experienced the same volume of foreclosures and distressed properties as other parts of the Grand Strand.
"Across the board... I would say that this year will be improved over last year unless something unusual happens, something ... that would curtail the confidence people are showing," Houseman said.
Home buyer tax credit
When the home buyer tax credit expires, it will likely have some impact on sales, Houseman said. The tax credits - which give first-time home buyers a credit of up to $8,000 and other buyers up to $6,500 - are scheduled to expire this spring. Buyers must sign a contract by April 30 and close on the house by June 30 to qualify for the credit.
"Even though it's hard to measure the future, common sense would tell you that might have a slowing down effect temporarily," Houseman said.
The tax credit has prompted some of Harrelson's clients to buy. If it is not extended, sales will decline, but not as much if consumer confidence hadn't ticked up, he said.
"One good thing that I see is consumer confidence in buying real estate seems to be increasing," he said. "Because confidence is so high right now, I think there would be less impact."
Buyers have gotten more conservative with price, he said. About 73 percent of the properties purchased last year in Horry County and 50 percent of properties purchased in Georgetown County sold for less than $225,000, according to Site Tech Systems, a local company that tracks the real estate market.
The most expensive properties are still seeing the biggest discounts, while the under $200,000 market will probably continue to be the most successful in 2010, Harrelson said.
Take a few minutes this weekend to visit one of our Weichert Open Houses. Here are just a few of the homes that you can walk through. If you like what you see, Weichert will even have a Sales Associate on site that can help you and answer any questions that you may have. Enjoy!
Open House: 03/06/2010 -03/06/2010 from 1:00 PM - 4:00 PM
| Listing Name: |
The Sanctuary at Wild Wing Plantation |
| Address: |
2623 Willet Cove Conway SC 29526 |
Open House: 03/07/2010 -03/07/2010 from 2:00 PM - 4:00 PM
| Listing Name: |
Cedar Creek - Barefoot Resort |
| Address: |
2705 Marsh Glen Drive North Myrtle Beach SC 29582 |
Open House: 03/07/2010 -03/07/2010 from 1:00 PM - 4:00 PM
| Listing Name: |
Timber Ridge Village |
| Address: |
1153 Forest Drive North Myrtle Beach SC 29582 |
For a complete list of Weichert Open Houses, Click Here.
If you are interested in Carolina Forest or Myrtle Beach Real Estate, check out this lovely home listed by Weichert Realtors Southern Coast sales associate, Anna Marie Brock.
MLS # 915728
 
Treat yourself to this Plantation Lakes .73 acre lakefront beauty on a cul-de-sac with 180’ bulkhead. Lake & preserve views from most rooms. No. 2 hardwood floors throughout main living areas. Great room w/fireplace, custom built-ins & surround sound. Formal dining. Spectacular kitchen featuring 42”cabinets w/crown molding, granite countertops, work island, stainless appliances, breakfast bar & breakfast nook. For the chef, a gas range/oven & an electric oven. Master bedroom w/separate door to covered porch; spacious master bath with all the bells & whistles: Jacuzzi tub, oversize tiled shower, walk-in closet & individual vanities. Library/study could be 5th bedroom w/a closet. Over the garage, 4th bedroom w/bath could be guest suite or a bonus room. Relax on the covered rear porch or the enclosed patio. Enjoy all the amenities that Plantation Lakes offers: 15 miles of shoreline, clubhouse, 2 main pools(1 for adults only), beach, day docks, fitness room, basketball, tennis, playground & kiddie pool.
For more information on this property or other properties just Click Here.
Foreclosures Drive Upswing in Home Sales
By Graeme Moore, WPDE
Wednesday, February 24, 2010 at 6:09 p.m.
The continuing foreclosure crisis has created a buyers market, and it is playing a large role in the recent upswing in home sales, market analysts say.
Sellers whose homes aren't in foreclosure are competing with low prices on the bank-owned properties.
"Buyers are able to get really good deals right now, and that's why we're seeing our sales increase," said Tom Maeser, a real estate analyst and director of continuing education at Horry Georgetown Tech.
Maeser said in January 2010, residential home sales on the Grand Strand hit 207. That's a 15 percent increase from January 2009 when 180 homes sold.
But as sales edge upward, prices are dropping. The average price for a residential home in January 2009 was $233,716, but this past January, it fell ten percent to $211,293, Maeser said.
Just as re-sale home prices drop, so do prices on new construction.
"We're almost able to compete with the foreclosure market, but not yet," said builder Bryan Slattery whose got five new home projects under contract since the beginning of the year.
One of those homes is a 3,500-square foot residential structure in Plantation Lakes. In 2005, it could have sold for $650,000 - $700,000, but now it will sell for $350,000 - $400,000, Slattery said. Still, Slattery says any business is better than last year when he built just three homes.
"They're not great numbers for everybody but ... it's slow growth. There's not as much negativity as there was last year, that's for sure."
Foreclosures, meanwhile, continue to create some negativity, as the trend is now toward primary homes foreclosing, and not the second homes seen at the beginning of the recession.
"It's not slowing down at all," said Anne Lawson who works in Horry County's Master-in-Equity court. "We're foreclosing on real homes that people live in." Lawson's office processed 3,641 foreclosures in 2009, and 2,846 in 2008. Since January of this year, she's already taken 467 cases.
"It's never ending. There's no way you can catch up," she said in an interview Wednesday afternoon.
Home prices will continue to drop, the real estate analyst said, until the that market segment clears out, and that could take months, possibly years. While it makes for a great buyer's market, for sellers, it can be a nightmare.
"Prices going down make it hard on the sellers because they're having to take less ... many times less than where their mortgage is at," Maeser said.
Military personnel and federal employees, such as members of the foreign service and employees of the intelligence community, are able to enjoy additional benefits when it comes
to the homebuyer tax credit. Typically, in order to claim the tax credit, eligible buyers must enter into a contract to purchase a principal residence by April 30, 2010, and close the transaction no later than June 30, 2010. However, according to the IRS, servicemen and women get an extra 12 months, allowing them until April 30, 2011, to sign a binding contract and until June 30, 2011, to close the purchase. The extension is available to individuals or their spouses who serve on qualified official extended-duty service outside the country for at least 90 days between Jan. 1, 2009, and April 30, 2010. In order to qualify, only one spouse needs to be overseas during that time frame. In addition to the extension, eligible members of the armed services, intelligence community or foreign service do not have to repay the credit if their home is sold or ceases to be a primary residence within the first three years as a result of orders sending them to a new duty station at least 50 miles away. Click here for more information about the special tax credit benefits for members of the military.
Posted At : February 19, 2010 10:10 AM
| Posted By : The Weichert Team
Related Categories:
Weichert Open Houses, Carolina Forest real estate, Myrtle Beach South Carolina real estate, coastal South Carolina real estate, North Myrtle Beach real estate, Grand Strand area, Myrtle Beach real estate, Carolina Forest Myrtle Beach, Surfside Beach real estate, Myrtle Beach SC, South Carolina real estate, beach property in Myrtle Beach, WEICHERT, REALTORS
Looking for Myrtle Beach Real Estate?
Get out and enjoy the beautiful weather this weekend and come visit one of Weichert's Open houses. Who knows, you may find the home you've been looking for! Feel free to call one of Weichert Realtors Southern Coast's Sales Associates today, for help in finding the locations of this weekend's open houses.
Open House: 02/21/2010 -02/21/2010 from 1:00 PM - 4:00 PM
| Address: |
1100 Commons Blvd. Myrtle Beach SC 29572 |
Open House: 02/21/2010 -02/21/2010 from 1:00 PM - 4:00 PM
| Address: |
237 Wedgefield Drive Conway SC 29526 |
For a complete list of this weekend's open houses, Click Here.
Weichert Realtors Southern Coast would like to congratulate Harry Tokunaga in earning his CSP (Certified Short Sale Professional) Designation from Realty-U. He has also completed the Marcia Ramsey Short Sale course at the CCAR, representing buyer and seller.
Congratulations Harry!
To see all of our Sales Associates at Weichert Realtors Southern Coast click here.
 
The Grand Strand and Brunswick County, N.C., received about 3.5 to 6 inches of snow this past weekend, according to preliminary reports from the National Weather Service's office in Wilmington, N.C.
The storm that ended early Saturday morning after almost 12 hours was "the most significant snowstorm to affect portions of the coastal Carolinas in 11 years," meteorologists said.
South Carolina got the most snow, with most locations reporting 5 to 7 inches. North Carolina's heaviest snow was in the southeastern part of the state, with more than 5 inches reported along the coast.
From the beachfront to backyards, Grand Strand residents were out throwing snowballs, building snowmen, making snow angels, and sledding with their families.
Source: Article by The Sun News
Posted At : February 12, 2010 10:25 AM
| Posted By : The Weichert Team
Related Categories:
Weichert Open Houses
JOIN US THIS WEEKEND! Treat your Sweetie to a tour of one of our open houses being held this weekend. Already have a way to sweep her off her feet? Feel free to call one of our sales representatives for a private appointment to view these properties .
Open House Saturday 2/13 & Sunday 2/14 1-4
169 Carriage Lakes Drive
Little River, SC
Open House Sunday 2/14 1-4
511 C 2nd Ave N
North Myrtle Beach, SC
Open House Sunday 2/14 1-4
2623 Willet Cove
Conway, SC
Open House Sunday 2/14 1-4
1100 Worchester Court
Murrells Inlet, SC
For a complete list of our open houses being held this weekend, click here. Weichert, Realtors Southern Coast specialized in properties from North Myrtle Beach to Murrells Inlet and west into Conway, including all the surrounding areas.
North Myrtle Beach Realtor Accepted into The Leadership 2010 Program
Rachel Hess, a realtor in our North Myrtle Beach office, has been accepted into the Coastal Carolinas Association of Realtors Leadership 2010 Program. The mission of the Leadership program is to empower our future leaders with the necessary tools to guide the organization and the community to improve the profession and the Association. In addition to the Leadership Program, Rachel is also a member of CCAR's Convention Committee, the Professional Education Committee and the local Legislative Committee. Last year, Rachel participated in the South Carolina Leadership Program and now serves on the Technology Committee.
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