The Charleston (SC) real estate market has experienced an important change in sales momentum. Fueled by low mortgage interest rates, improved housing affordability (lower home prices), the $8,000 Tax Credit for first-time home buyers and the prospect of increased employment with the future Boeing plant being built near the Charleston International Airport, year-over-year monthly sales (i.e. October 2009/October 2008) have shown increases for the past four months, for the first time since October of 2006!

As this chart shows, this "turn" in the market trend signals positive things to come for our real estate market. Higher monthly sales = accelerated inventory reduction = shorter time to market supply/demand stabilization.

What does this mean for any potential buyer or homeowner? While in the short term (Fall/Winter 09) the market may still look it is declining, this change of momentum means that next year there will be increased demand for homes in the area. As a buyer this means increased competition, which will prevent them from negotiating "incredible deals". As a seller, this is good news in the long term. The market will return to a "balanced" market once we hit 5-7 months' inventory, which will place sellers in a more balanced negotiating position (right now buyers have a notable advantage).

Of course, market momentum may shift again if any of the underlying variables shift. For example, the market may slow down again if interest rates shift upwards dramatically. However, at this point this seems unlikely, given that inflation is not yet on the Fed's radar screen. But you never know...

My advice for buyers: Don't wait! Take advantage of this window of opportunity now!
My advice for sellers: Can you hang in there for another 9-16 months? You may be able to get a better price for your home if you can wait...

Great buys in Belle Hall!

With the soft real estate market, there are some great buying opportunities in Belle Hall Plantation. Four years ago, there were no listings in Belle Hall under $300,000. Today there are SEVEN listings under $300K!
There are also great buying opportunities in Hibben and Evian for more modern and upmarket homes. Follow this link for a list of current Belle Hall listings...
For more information on Belle Hall Plantation visit MyBelleHall.com

Got $23 Million to Spare?

An incredibly expensive home just hit the Charleston MLS:

32 LEGARE ST. South of Broad (Downtown Charleston) was just listed for $23 Million! Maybe this is not a big deal in New York, San Francisco or Los Angeles, but for Charleston this is a huge price! More details here..

Showings are at an 18-month high in Mt. Pleasant and also in Dorchester County (Summerville), according to data compiled by Centralized Showing Service, which records all showings booked for REALTORS via the MLS. Charleston (West Ashley) and areas of Berkeley County also exhibit a similar patter (see graphs). Because showings are an indicator of the level of buyer interest in the market, it can be used as a predictor for future sales, which will normally show up 2-3 months later.
Many factors may be contributing to this uptick in showings: Families are back from summer holidays, interest rates are still low, prices have continued to drop, and the $8,000 First-time Home Buyers' Tax Credit is encouraging renters to get in the game!

This is all good news that show the resiliency of our Charleston Area Market. I have always argued that Charleston is blessed because a) It is on the coast (almost everyobdy loves the beach); b) It has great weather (no snow); and c) Its economy is dependent on at least four different industries: Tourism & hospitality, logistics (the Port of Charleston), education (MUSC, College of Charleston, Charleston Southern University) and the military (Charleston Air Force Base, SPAWAR and the Naval Weapons Station). So our economy should rebound quicker than a similar sized single-industry town...

Read More Articles Like This One at http://www.BuyHomesInCharleston.com/blog.html

This guide for first-time home buyers is intended to provide general information to help buyers be aware of the buying process, and to dispel any myths about buying a home. Please discuss your particular situation with the appropriate professionals before making any decisions.

So, You want to Buy a Home?
Since buying a home is a BIG financial commitment, many first-home buyers (and some repeat buyers) feel very intimidated by the whole process, which, in itself is rather uncomplicated, but it involves a lot of small steps, that, if not done right, can produce expensive mistakes.

In my 12 years in Real Estate I have dealt with many types of buyers and different scenarios, so I have developed a "method" to reduce stress and ensure success. Here's a brief synopsis of my recommended "Buying Process".

STEP 1 - Hire a REALTOR to Represent You
In SC, buyers can hire their own Buyer's Agent, normally at no cost to them. Once you hire a REALTOR as your Buyer's Agent, this person has a FIDUCIARY responsibility to represent you and protect your best interests. Buying a home is a "joint project" between you and your REALTOR. Make sure you establish a mutually agreeable communication pattern and that you have clear expectations of each other's responsibilities.

STEP 2 - Show Me the Money
Whether you are single and about to buy a home on your own, or (even more so) a couple with kids, money is always one of the crucial factors to explore upfront. Ask yourself these questions:

What's the total monthly payment that you would feel comfortable with, without stretching your finances or cramping your style?
Do you have an "emergency fund" in case there's a hiccup (loss of income, emergency, etc.)?
How much money do you have to put down toward the purchase?
Now, it's time to get PRE-APPROVED. Contact a local lender and they will be able to walk you through an application. The lending officer will review your INCOME, EXPENSES, ASSETS and LIABILITIES, plus your CREDIT SCORE. Based on a formula that takes into consideration several factors, the lender will tell you HOW MUCH is the maximum purchase price and loan amount you can have, the amount you must have ready for your down payment and your estimated MONTHLY PAYMENT.

Ask for a written PRE-APPROVAL letter and how long it is valid for. Keep in mind that (especially in this market) such a letter is often required by Sellers, and will give more weight to any offer you make.

STEP 3 - Define Your Needs and Wants
Some buyers do not have a clear picture of what they want, and in a "buyer's market", where there are literally thousands of available homes, they can get confused and frustrated quite easily. I recommend that you write down your needs and wants, and rank them in priority, for example:

MY/OUR BUYING CRITERIA

NEED (must have): Min. 3-bedrooms, "excellent" rated schools, 2,000 sq. ft., under $200,000, within a 45-minute drive to/from work.
WANT (would like to have): Community pool, bonus (FROG) room, 2-car garage.
NOTE: If there is more than one decision maker, make sure you all agree on at least the NEEDS column. It is important that you share these criteria and priorities with your REALTOR, to help him/her give you better selection of properties and provide better advice.

Next: Searching for a home and negotiating a contract....

SHOWINGS & PETS
Most of us REALTORS® are animal lovers and have pets of our own, but we also share many stories about showing homes where our clients went into a sneezing fit, we got bitten by a cantankerous furry creature, or opened the front door only to helplessly see a cute kitty scoot toward the nearest busy street.

It is essential to take pets into consideration if you put your house on the market. Make sure you work out the showing arrangements/instructions carefully with your REALTOR®, since it is important for showing agents to know what to expect inside your home. Buyers could potentially be allergic or scared of cats or dogs (especially if they bring children along).

Although most pets are harmless, they may hinder the buyers' experience and put a "negative aura" for your home in their minds. It is difficult to get a buyer excited about your home if he or she is sneezing continuously or unwilling to cross the threshold because your dog is barking away intruders.

One of my fellow agents has this great listing in Mount Pleasant, popular price range, great location, priced right. Yet she has had the hardest time selling it because the owner refuses to clean up after his cat, and the house smells terrible! This home should have sold months ago, if this issue had been handled appropriately...

If your agent knows there might be a problem, you may wish to walk or cage your dog, vacuum the cat hairballs or do whatever is necessary to make sure that the showing goes smoothly.

Is the new $8K tax credit useful? Will it do THE JOB it was designed to do?

I'd like to find out what people think...is this federal program a good one, or is it just providing "lip service" to people concerned about the housing market?

Here's an article that appeared on CNN that describes the tax credit:

http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm

What do you think?

Increased showing activity in Mt Pleasant will lead to more sales in the next two months...