Beach Sweep

The Fripp Island Beach has been swept!!!!!!!!!! No not with a broom......... This morning approximately 20 volunteers armed with rubber gloves and trash bags combed the beach looking for trash and all manner of debris. Personally my group and I (Patty Patek, Theresa Cooper & Steve Chesler) worked from the Beach Club to the south end of Tarpon. Although I didn't find anything spectacular, (a kids flip flop, an old sand bucket and some large pieces of styrofoam were about as exotic as I got), I did help return our beach in the Lowcountry to it's naturally beautiful state.

There were however a few items worth mentioning; a half bra, some birth control devices and best of all, Theresa Cooper found a bottle with a message in it. The message was from a six year old and a four year old who were vacationing on Fripp about 2 weeks ago. The simply sent a message out in hopes that whoever finds it will let them know. So Theresa of course is sending them a note telling them where she found it.

Would it be more fun for the kids if the bottle had turned up in some far off exotic locale? Probably..... However, it's fun for me to know that two kids were outside playing, breathing fresh air and learning about the earth. All three of those activities beat video games in my book every day of the week and twice on Sunday's.

Great News

June 28, 2010

Senate Bill 1051 becomes law!!

All of us have been closely following the progress of Senate Bill 1051 during the last weeks. There were tense times as the legislative session was nearing its end but the bill was approved just under the wire, and is now law. Today, Governor Sanford has filed the unsigned bill with the Secretary of State where it now has the full faith and backing of the state of South Carolina.

This bill was critical to all Fripp owners for several reasons not the least of which was the potential significant drop of property values island wide, and other unintended consequences such as difficulty for buyers to obtain home loans. When the Office of Coastal Resource Management (OCRM) changed our setback lines last November and refused to address our concerns in a hearing, our only recourse to prevent the decision from becoming permanent was to delay the action by appealing to the Administrative Law Court. Your Board voted unanimously to appeal and start the process of getting the OCRM decision reversed on Fripp allowing time for our legislative representatives to start the process of the exemption bill.

What this bill means for Fripp going forward is that Fripp Island will be allowed to maintain its rock revetments. It also means that the baseline will be fixed at the top of the revetment and the setback lines will be permanently fixed at 20-feet landward of the revetment. OCRM will not come to Fripp every 10 years as they do elsewhere along the coast to re-examine the erosion rates, Fripp will be exempt from that section of the Beachfront Management Act. As long as the rock revetments are maintained, and it will remain each owner’s responsibility to maintain them, Fripp’s beachfront lots will continue to have the same jurisdictional lines within which to build that they have had for the past thirty years. The threat to all Fripp owners from OCRM’s landward movement of setback lines by use of unreliable data is no longer an issue.

We have many people to thank for making S. 1051 a reality. First and foremost is our General Manager, Kate Hines. She has worked tirelessly on this effort. The Board deserves credit for taking the initiative to move quickly when short timelines were imposed by OCRM. Mary Shahid of McNair Law Firm worked with Kate and the Board and also helped Senator Tom Davis who deserves our deepest gratitude for giving us not only his time but for having the forethought to draft this bill. Representative Shannon Erickson lent 100% of her support for the bill in the House of Representatives. Last but not least our members stepped to the table, called their Senators and Representatives, not just once but many times as this bill went from one legislative body to another and into Conference.

Congratulations Fripp Island it’s a great day for all of us!

Micki McCormick

FIPOA President

4 Good Things That Are Happening

4 Good Things That Are Happening



1. May’s consumer spending is up 0.2%
2. May’s incomes are up 0.4%
3. May’s savings rose from 3.8% to 4.0%
4. GDP is up 2.7% from the first quarter

While these things are not a declaration that the worst of this challenging market is over, they are certainly pieces of good news and I feel a need to mention it as good news seldom gets talked and or written about.

Cindy

National Flood Insurance Program

Quite frankly, I thought the 3rd time would be the charm, but no.......... Once again Congress failed to extend the National Flood Insurance Program and again this has caused delays in closings. The National Flood Insurance Program provides federally backed and affordable flood insurance coverage for millions of homes and businesses nationwide. Here on the coast lender's require flood insurance as part of the loan, much like they would traditional homeowners insurance. By some estimates, this failure to extend the program has caused the delay of approximately 1400 properties daily across the country.

Until the program is reauthorized, buyers cannot obtain the insurance, however in some cases they are able to assume the seller's policy. So why am I writing about something negative in the real estate market? Quite frankly because we need help. It is certainly not news that the real estate market has suffered dramatically over the last several years and here in the second home market it is no different. Many people have asked me why we are suffering because the second home market is just another luxury of the rich. On more than one occasion I have heard something like "rich people will buy in any market". That's just not true.

Beyond the proclivities of the people with significant discretionary income, let's think about what these second and retirement homes mean in the broad picture. In my opinion, they are the basis for a big part of our economy and a source of livelihood for our middle class. Think of the carpenter doing the framing on the house, think of the irrigation company installing the system, think of the washers, dryers, refrigerators, tv's etc. being purchased and installed, think of the restaurants that are being patronized, think of the home improvement stores selling all manner of merchandise to a new home owner and the list goes on and on and that is precisely why we (those of us making our living in the housing market and the sellers trying to sell their homes)need this program to be reinstated.

On a daily basis, I read about how much Washington is doing to stimulate the housing market and for that I say thanks. I am not asking for a new stimulus, I am just asking to resuscitate a necessary program before it is too late, I'm just asking to not create problems. The housing market has taken many blows to the head and we keep getting up -- we have too,our nation's economy depends on it. If you agree with me that Congress shouldn't break for independence day without passing this, please contact either Jim DeMint or Lindsey Graham. If you go to their websites, you will be directed to fill out a form which is fine, however a think a better idea is to email their schedulers at alice_james@lgraham.senate.gov or julie_blackorby@demint.senate.gov. Thanks in advance.

Coosaw Point BBQ Cookoff

On June 5, 2010 Island Realty and Coosaw Point held the “First Annual Coosaw Point BBQ Cookoff” to benefit The Little Red Dog, an organization that provides special bikes to handicapped children and adults. 250 locals attended the cookoff showcasing both professionals and amateurs competing in a variety of categories such as Professional, Amateurs, Just for Fun/Trailer Trash and Showmanship. Among the area restaurants in the event were, Saltus / Plums, Boondocks, Keiths, Danny’s BBQ, The Office & The Smokey Chef. Among the amateurs vying for honors were Bud Martin, Andy Gallant & Lorrick Fanning.

The daunting task of tasting and judging these fine samples of “real barbecue” was left to local celebreties; Rep. Shannon Erickson, Sen. Tom Davis, Mayor Billy Keyserling, Malcolm Goodrich, Charles Gay and Richard Brooks. Robert and Ann Gallant graciously donated the location and Island Realty’s Christian Sherbert & Todd McDaniel did a yeoman’s job of organizing the event that ultimately raised $1700 for The Little Red Dog Foundation”. Go to www.coosawpoint.com for pictures.

Reluctant Buyers Lament

I cannot take credit for this, one of our agents, Christian Sherbert, gave it to me, and I think you will like it.

Reluctant Buyers Lament

I hesitate to make a list

Of all the countless deals I've missed

Bonanzas that were in my grip

I watched them through my fingers slip;

The windfalls which I should have bought

Were lost because I overthought;

I thought of this, I thought of that

I could have sworn I smelled a rat,

And while I thought things over twice,

Another grabbed them at the price.

It seems I always hesitate,

Then make my mind up much too late.

A very cautious man am I

And that is why I never buy.

The golden chances I had then

Are lost and will not come again.

Today I cannot be enticed

For everything is overpriced.

The deals of yesteryears are dead;

The market's soft and so's my head!

At time a teardrop drowns my eye

For deals I had, but did not buy;

And now life's saddest words I pen --

IF ONLY I'D DECIDED THEN!!!!!!!

Sales Trending Upward in 2010

Last week for the first time in quite a while, I didn’t cringe when I looked at our monthly numbers. In fact when I finished studying them I was down-right happy. I am by no means telling you that this challenging market is behind us but I am telling you that we are starting to crawl out of the darkness.

Our “closed sales” and our “pending home sales” are more than twice what they were year to date in ’09, additionally, our walk in traffic, phone ins and web site hits are also twice what they were YTD. Island Realty is still the leader east of Cowan Creek with both listing volume and closed sales and we are the dominant force on Fripp Island (43% market share), Harbor Island (30% market share) and Coosaw Point (58% market share).

Last year we did 70% of our business in the 2^nd half of 2009 and I was hopeful that the trend would continue and it has. The market continues to be demanding however and depending on what you read either the recession is behind us or soon to be over. The truth is no one can tell you for sure the exact moment that we are out of this until we are well past it. The statistics that I cited above give me great hope that we are either out from under the black cloud or soon to be and when that happens, I will be supremely happy, not happier than our buyers and sellers, but supremely happy nonetheless.

Locally, both inventory and prices are starting to stabilize. Although lending is still tight, those with good credit can still get loans. Additionally those who are able to obtain financing are snapping up property at bargain prices which is a win / win. The buyers get almost instant equity and we as neighbors and home owners get a reduction in inventory supply, which helps prices stabilize, which is critical to returning to a normal market. Indeed a win / win.

So what does my crystal ball say? Quite frankly the volatility of the market over the last two years has shattered my crystal ball. The last two years have been the toughest of my career and I was licensed in 1995. The market did strange and weird things. Banks did even stranger things on short sales and foreclosures, the stock market did strange things as well.

Truly though, I believe there is real evidence of improving conditions in many respects. Employment is improving, retail spending is improving and auto sales are up (I personally participated in boosting the auto sales). Even the most pessimistic of forecasters noted that jobs and housing would need to turn before we should feel like we are back on track. I can tell you that we at Island Realty are doing our part to keep the housing component on track, no small task, but we are doing our part. Another win / win.