Quick Fact About '08

Once again, Island Realty was the clear leader east of Cowan Creek both in sales volume of $32,000,000 and number of units closed at 37. Our nearest competitor had volume of $19,000,000 closing 19 units. Given the challenging economic times I am very proud of these numbers and clearly we are keeping our market share.

Have we seen the bottom of the market? Who knows, certainly not me and no one will know until it has passed. This is just a guess, I suspect the real esate market graph will look somewhat like a V. In other words, if (and I hope it doesn't) it continues to slide downward, when it hits bottom, I believe that with all the pent up demand, it is going to blast back.

Think about it, the front end of the baby boom is starting to retire, they are beginning to inherit, their kids are off their payroll and they have their 401 k money etc. So many people have been sitting on the sidelines that when this thing turns, I suspect they will all be jumping in at once. The simple laws of supply and demand tell me that all that pent up demand will drive prices up. So what's the takeaway here? It's a buyers market, so buy. Buy now while you can buy low, before the prices start rising, before the inventory decreases, before interest rates begin to creep. Speaking of which, I just closed on a great piece of property, so my money is indeed where my mouth is.

Real Estate on the Sea Islands in The New Year

Welcome to 2009. Where to start, where to start? In about 10 days we will have a new president. My hope is that the new administration can help pull the country out of the challenging real estate market, get the economy under control and most importantly get things in Iraq and Afghanistan under control as well. Somehow they all seem interconnected to me and helping one of those things will ultimately help the other two.

From my point of view, our year is off to a good start. While we are only 13 days into the New Year, Island Realty has already put 7 properties under contract for a total value of $2,765,900 all due to close within the next 45 days. Additionally Island Realty boasts 48 % of all the active listings on Fripp and 36% of all the active listings on Harbor. Further I/R claims 50% of the new contracts on Fripp and 100% of the new contracts on Harbor.

Dataw remains a challenge to us but we are committed to penetrating that market in '09. With a combination of newsletters, e-blasts, community participation and plain old fashioned hard work, by this time next year our Dataw statistics will be just as impressive as our Fripp and Harbor statistics. Stay tuned.

Feds Cut Rates

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.

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.

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

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.

Commentary: Is this the start of another Great Depression? - CNN.com

Commentary: Is this the start of another Great Depression? - CNN.com