The Federal Reserve's cut in Key interest rates makes 30 year fixed mortgage rates the lowest since the 1960's, sparking a surge in homeowners looking to cash in and refinance. Some lenders are now offering rates as low as 4.5 %. Last March, I refinanced my own home at 5.5% and was thrilled with that rate. Does it make sense to seek out a refi? It could depending on what your current rate is, how long you plan to be in your home etc. One rule of thumb that I hear a lot is that if the difference in your current rate and the new rate is at least 1.5% you should consider it. You need to determine how much the refinance is going to cost you in real costs and how long it will take to realize any savings. In other words, if it cost you $1500 to refinance and you are going to save $100 per month, it will be 15 months before you realize any true savings.
Another good reason to refinance is if you are in an adjustable rate mortgage (arm) that is getting ready to reset, already has or in general has simply become too expensive. Lenders are stricter with credit, requiring higher credit scores and borrowers equity position of at least 20%.
All of this leads one to believe there is a strong possibility of a big refinance boom. If you're trying to sell and haven't been able to this could really help you out. With lower interest rates there are more able borrowers out there to buy your home. The other possibility is that if you have enough equity in your home, you can pull some out to make improvements. In any event, the loosening of the credit hopefully will help stimulate the housing market followed by the rest of the economy.
Thursday, December 18, 2008
Tuesday, December 16, 2008
Office Space for Rent
Great location for a small business. Approximately 1000 SF with parking available for low key tenant -- account, lawyer etc. $1500 per month including utilities. Location is 847 Sea Island Parkway, right next to What's In Store in the heart of downtown Frogmore. For further information, email me at cindy@islandrealty.info.
Monday, December 15, 2008
Unusual Weather
Good Afternoon:
As I write, the temperature on Harbor Island is 64 F. This is a bit unusual for the lowcountry at this time of year. The good news the temperature is supposed to be 77 F by Wednesday. So if you're local, it seems like a good time to get in a few last rounds of golf. If you aren't here, well I wish you were so you could share this delightful time with us.
Cindy
As I write, the temperature on Harbor Island is 64 F. This is a bit unusual for the lowcountry at this time of year. The good news the temperature is supposed to be 77 F by Wednesday. So if you're local, it seems like a good time to get in a few last rounds of golf. If you aren't here, well I wish you were so you could share this delightful time with us.
Cindy
Friday, December 12, 2008
1% Transfer Fee on Dataw
Recently a special meeting was called to amend the Dataw Island Owners Association Covenants adding Section 9.04.01 - the Property Transfer Assessment -
The change called for a 1% transfer fee on properties to be paid by the Buyer. The effort to enact this new fee failed 68% - 31%. A 75% approval is required.
This is a good thing for real estate on the Island. In these tough times we shouldn't make it tough on buyers to buy or give them reasons to look elsewhere.
The change called for a 1% transfer fee on properties to be paid by the Buyer. The effort to enact this new fee failed 68% - 31%. A 75% approval is required.
This is a good thing for real estate on the Island. In these tough times we shouldn't make it tough on buyers to buy or give them reasons to look elsewhere.
Thursday, October 9, 2008
Thursday, September 4, 2008
Track Tropical Storm Josephine, Track Hurricane Ike, Track Hurricane Hanna / Stormpulse / Hurricane tracking, mapping
Hello Friends, Tropical storms are a serious issue when you live in a coastal area, or own a home in a coastal area. With that in mind, I wanted to share with you a great storm tracking site.
Track Tropical Storm Josephine, Track Hurricane Ike, Track Hurricane Hanna / Stormpulse / Hurricane tracking, mapping
Track Tropical Storm Josephine, Track Hurricane Ike, Track Hurricane Hanna / Stormpulse / Hurricane tracking, mapping
Tuesday, August 26, 2008
Some Good News For Everyone
New-Home Sales in U.S. Increase From 17-Year Low (Update1)
By Shobhana Chandra
Aug. 26 (Bloomberg) -- New-home sales in the U.S. improved in July from a 17-year low and construction cutbacks by builders reduced the glut of properties on the market by the most in almost five decades.
Sales increased 2.4 percent to a 515,000 annual pace that was lower than anticipated after a revised 503,000 rate in June, the Commerce Department said today in Washington. The number of unsold homes on the market fell 5.2 percent, the most since November 1963, to a 416,000 pace.
Lower prices have made homes more affordable for Americans still able to obtain a mortgage, stemming the slide in demand and making it more likely the property glut will clear. A more stable housing market would eliminate one of the biggest risks to the economy even as the credit crisis and job losses threaten growth.
``We're hopefully getting in the vicinity of a bottom,'' David Resler, chief U.S. economist at Nomura Securities International Inc. in New York, said before the report. Still, ``we're a long way from a recovery. We'll see activity at low levels for a while.''
Economists forecast new-home sales would drop to a 525,000 annual pace from an originally reported 530,000 rate the prior month, according to the median estimate in a Bloomberg survey of 76 economists. Forecasts ranged from 493,000 to 570,000.
The median price of a new home decreased 6.3 percent to $230,700, from $246,200 a year earlier.
Cheaper Gasoline
Consumer confidence in August increased more than forecast in August as cheaper gasoline improved Americans' moods, a private report showed. The Conference Board's confidence index rose to 56.9 from 51.9 in July.
Another report today showed home prices fell at a slower pace in the second quarter, signaling the slump may be starting to stabilize. Home values declined 2.3 percent from the previous three months, compared with a 6.8 percent drop in the first quarter, according to the S&P/Case-Shiller index.
Sales of new homes were down 35 percent from July 2007, the Commerce report showed.
The supply of homes at the current sales rate fell to 10.1 months' worth from 10.7 months in June. Still, real-estate industry groups have said a five to six months' supply signal a balanced market.
While accounting for only about 15 percent of the housing market, new-home purchases are considered a timelier indicator because they are based on contract signings. Sales of previously owned homes, which make up the remainder, are compiled from closings and reflect contracts signed weeks or months earlier.
Weakness Masked
Resales increased 3.1 percent in July, the National Association of Realtors said yesterday. The gain masked further weakness as inventories surged to a record high level of 4.67 million unsold houses and condos.
Inventories of new properties are likely to keep shrinking as builders pull back. Ground was broken on the fewest new houses in 17 years in July, and permits, a sign of future construction, also fell, Commerce Department figures showed.
Government officials remain pessimistic.
``We have a ways to go before we start seeing a turnaround,'' Housing and Urban Development Secretary Steve Preston said yesterday in an interview. ``We'll be well into 2009 before we see some real energy in this market.''
New home sales increased in two of four regions from the prior month, led by a 39 percent jump in the Northeast. Purchases declined 8.2 percent in the Midwest and 2.5 percent in the South, today's report showed.
Company results reflect the distress. Home Depot Inc. and Lowe's Cos., the world's two largest home-improvement retailers, posted declines in second quarter profit.
``We continue to see pressure on our market and the consumer,'' Home Depot Chief Executive Officer Frank Blake said in a statement last week.
To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net
By Shobhana Chandra
Aug. 26 (Bloomberg) -- New-home sales in the U.S. improved in July from a 17-year low and construction cutbacks by builders reduced the glut of properties on the market by the most in almost five decades.
Sales increased 2.4 percent to a 515,000 annual pace that was lower than anticipated after a revised 503,000 rate in June, the Commerce Department said today in Washington. The number of unsold homes on the market fell 5.2 percent, the most since November 1963, to a 416,000 pace.
Lower prices have made homes more affordable for Americans still able to obtain a mortgage, stemming the slide in demand and making it more likely the property glut will clear. A more stable housing market would eliminate one of the biggest risks to the economy even as the credit crisis and job losses threaten growth.
``We're hopefully getting in the vicinity of a bottom,'' David Resler, chief U.S. economist at Nomura Securities International Inc. in New York, said before the report. Still, ``we're a long way from a recovery. We'll see activity at low levels for a while.''
Economists forecast new-home sales would drop to a 525,000 annual pace from an originally reported 530,000 rate the prior month, according to the median estimate in a Bloomberg survey of 76 economists. Forecasts ranged from 493,000 to 570,000.
The median price of a new home decreased 6.3 percent to $230,700, from $246,200 a year earlier.
Cheaper Gasoline
Consumer confidence in August increased more than forecast in August as cheaper gasoline improved Americans' moods, a private report showed. The Conference Board's confidence index rose to 56.9 from 51.9 in July.
Another report today showed home prices fell at a slower pace in the second quarter, signaling the slump may be starting to stabilize. Home values declined 2.3 percent from the previous three months, compared with a 6.8 percent drop in the first quarter, according to the S&P/Case-Shiller index.
Sales of new homes were down 35 percent from July 2007, the Commerce report showed.
The supply of homes at the current sales rate fell to 10.1 months' worth from 10.7 months in June. Still, real-estate industry groups have said a five to six months' supply signal a balanced market.
While accounting for only about 15 percent of the housing market, new-home purchases are considered a timelier indicator because they are based on contract signings. Sales of previously owned homes, which make up the remainder, are compiled from closings and reflect contracts signed weeks or months earlier.
Weakness Masked
Resales increased 3.1 percent in July, the National Association of Realtors said yesterday. The gain masked further weakness as inventories surged to a record high level of 4.67 million unsold houses and condos.
Inventories of new properties are likely to keep shrinking as builders pull back. Ground was broken on the fewest new houses in 17 years in July, and permits, a sign of future construction, also fell, Commerce Department figures showed.
Government officials remain pessimistic.
``We have a ways to go before we start seeing a turnaround,'' Housing and Urban Development Secretary Steve Preston said yesterday in an interview. ``We'll be well into 2009 before we see some real energy in this market.''
New home sales increased in two of four regions from the prior month, led by a 39 percent jump in the Northeast. Purchases declined 8.2 percent in the Midwest and 2.5 percent in the South, today's report showed.
Company results reflect the distress. Home Depot Inc. and Lowe's Cos., the world's two largest home-improvement retailers, posted declines in second quarter profit.
``We continue to see pressure on our market and the consumer,'' Home Depot Chief Executive Officer Frank Blake said in a statement last week.
To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net
Monday, August 25, 2008
Wednesday, August 13, 2008
Waiting for the Bottom of the Market
Dear Friends,
Continually we hear buyers say, "I am going to wait for the bottom of the market". Good strategy indeed, my question though is, "How will you know it's the bottom?" No one will know it is the bottom of the market until it is passed and the market is on the ascent, at which point buyers have probably missed great buying opportunities. Not only will they have lost great buying opportunities but I am going to predict that while they were sitting on the sidelines waiting for the bottom of the market, interest rates began to climb. So over the long term how much did anyone really save if anything at all? Buying a home at a lower price with a higher interest rate does not sound like a savings to me.With inventories in our area high, it’s a great time to buy. There are many homes to choose from in most areas in most price ranges. As the economy regains health these buying opportunities will diminish and prices will start to creep up. This is the simple law of supply and demand. The greater the supply, the lower the price. The scarcer the homes in supply, the higher the price. Does anyone really want less to choose from at a higher price? Think about it.
Continually we hear buyers say, "I am going to wait for the bottom of the market". Good strategy indeed, my question though is, "How will you know it's the bottom?" No one will know it is the bottom of the market until it is passed and the market is on the ascent, at which point buyers have probably missed great buying opportunities. Not only will they have lost great buying opportunities but I am going to predict that while they were sitting on the sidelines waiting for the bottom of the market, interest rates began to climb. So over the long term how much did anyone really save if anything at all? Buying a home at a lower price with a higher interest rate does not sound like a savings to me.With inventories in our area high, it’s a great time to buy. There are many homes to choose from in most areas in most price ranges. As the economy regains health these buying opportunities will diminish and prices will start to creep up. This is the simple law of supply and demand. The greater the supply, the lower the price. The scarcer the homes in supply, the higher the price. Does anyone really want less to choose from at a higher price? Think about it.
Monday, July 28, 2008
Economists View of Housing Stimulus Package
Yes we are all still trying to figure out the bottom of the market and we won't know until it's past. In the meantime there is a housing stimulus package that is on it's way to President Bush. Click on the link below to hear one economist's take on it.
http://www.npr.org/templates/story/story.php?storyId=92971937
http://www.npr.org/templates/story/story.php?storyId=92971937
Monday, July 21, 2008
Birthday Calendar
Hi this post is not real estate related but seemed a bit interesting. Please read and give it a try.
Click on Birthday Calculator: CLICK HERE https://webmail.cboki.com/exchweb/bin/redir.asp?URL=http://www.paulsadowski.com/birthday.asp
Click on Birthday Calculator: CLICK HERE https://webmail.cboki.com/exchweb/bin/redir.asp?URL=http://www.paulsadowski.com/birthday.asp
Thursday, July 10, 2008
Waiting for the Bottom of the Market
Continually we hear buyers say, "I am going to wait for the bottom of the market". Good strategy indeed, my question though is, "How will you know it's the bottom?" No one will know it is the bottom of the market until it is no longer the bottom of the market and the market is on the ascent, at which point buyer's have probably missed great buying opportunities. Not only will they have lost great buying opportunities but I am going to predict that while they were sitting on the sidelines waiting for the bottom of the market, interest rates began to climb. So over the long term how much did anyone really save if anything at all? Lower home prices with higher interest rates does not sound like a savings to me.
With inventories in our area high, it seems to me like a great time to buy. There is lots to choose from in most areas in most price ranges. When / if the media picks up on this and chooses to report on it, these buying opportunities will diminish and prices will start to creep up. This is the simple law of supply and demand. The more the supply, the lower the price. The scarcer the homes in supply, the more expensive the price. Does anyone really want less to choose from at a higher price? Think about it.
With inventories in our area high, it seems to me like a great time to buy. There is lots to choose from in most areas in most price ranges. When / if the media picks up on this and chooses to report on it, these buying opportunities will diminish and prices will start to creep up. This is the simple law of supply and demand. The more the supply, the lower the price. The scarcer the homes in supply, the more expensive the price. Does anyone really want less to choose from at a higher price? Think about it.
Monday, July 7, 2008
Real Estate is a Long Term Investment
The news media is all abuzz these days with information about what is happening in the real estate market. But if you rely on the media to tell you whether now is a good time to buy or sell, you may be missing some great opportunities. To get the proper perspective on the value of real estate, you have to go right to the source, and that means talking to the professional Realtors at Island Realty of the Low Country.
According to 2007 National Association of Realtors president, Pat V. Combs, “Perceptions about real estate have been skewed in recent months due to the overwhelming focus on national figures. While average sales and prices help us identify trends, the fact is all real estate is local – conditions vary greatly from one market to the next. Unfortunately that news is unreported.”
The current 10 year low home sales activity can partly be justified by the virtual non-existence of sub-prime loans, which accounted for about 20% of mortgage originations in recent years. But sub-prime loans were virtually non-existent 10 years ago also. Conforming loans have tighter underwriting standards – but those standards were also pretty much in place 10 years ago. What is limiting housing demand, therefore, cannot be explained by fundamentals. The soft housing demand is psychological. It is a crisis of confidence.
Lawrence Yun, NAR Chief economist says, “The bottom line on the economy is zero growth in the first half of the year, but 2% economic expansion in the second half of the year. Rising home sales and rising home prices at the end of the year will mark one heck of a recovery after so many unprecedented disruptions.”
We at Island Realty of the Low Country agree with Mr. Yun. We also believe that when the housing market comes back, it will do so with a vengeance. With that in mind we are busy getting ready for just that. We are optimizing our internet search engine placement, gaining dominance on You Tube and enhancing our interactive web site just to name a few of the actions in the works.
When you are ready to list your home or search for a new one, turn to your best source, the professionals at Island Realty of the Low Country. We are more than ready to help you sell your house at the highest price on the best terms and / or find that perfect home in that perfect neighborhood. Call us!!!
According to 2007 National Association of Realtors president, Pat V. Combs, “Perceptions about real estate have been skewed in recent months due to the overwhelming focus on national figures. While average sales and prices help us identify trends, the fact is all real estate is local – conditions vary greatly from one market to the next. Unfortunately that news is unreported.”
The current 10 year low home sales activity can partly be justified by the virtual non-existence of sub-prime loans, which accounted for about 20% of mortgage originations in recent years. But sub-prime loans were virtually non-existent 10 years ago also. Conforming loans have tighter underwriting standards – but those standards were also pretty much in place 10 years ago. What is limiting housing demand, therefore, cannot be explained by fundamentals. The soft housing demand is psychological. It is a crisis of confidence.
Lawrence Yun, NAR Chief economist says, “The bottom line on the economy is zero growth in the first half of the year, but 2% economic expansion in the second half of the year. Rising home sales and rising home prices at the end of the year will mark one heck of a recovery after so many unprecedented disruptions.”
We at Island Realty of the Low Country agree with Mr. Yun. We also believe that when the housing market comes back, it will do so with a vengeance. With that in mind we are busy getting ready for just that. We are optimizing our internet search engine placement, gaining dominance on You Tube and enhancing our interactive web site just to name a few of the actions in the works.
When you are ready to list your home or search for a new one, turn to your best source, the professionals at Island Realty of the Low Country. We are more than ready to help you sell your house at the highest price on the best terms and / or find that perfect home in that perfect neighborhood. Call us!!!
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