This home is perfect for year round living, yet close enough to the beach to be a vacation home or investment property.  Just two blocks to the beach, or two blocks to the marina, restaurants and the Intracoastal Waterway.

Call for more details!  Linda Gordon (843)324-3476

Outlook Favorable for Second-Home Market
Despite weakening second home purchases in 2008, the long-term demand looks favorable for the second-home market because there are large numbers of people in the prime years for buying a second home.

Currently, 39.2 million people in the United States are ages 50 to 59—a group that dominated sales in the first part of this decade. An additional 44.8 million people are between 40 and 49, and another 40.7 million are 30 to 39.

“While economic factors can affect sales from one year to the next, the fundamental demand from these large population groups will remain,” says Lawrence Yun, NAR chief economist. “Given that most people become interested in buying a second home in their 40s, the bulge of population approaching middle age should drive the second-home market over the next decade.”

The median price of a vacation home was $150,000 in 2008, down 23.1 percent from $195,000 in 2007. The typical investment property cost $108,000 last year, which is 28 percent below the 2007 median of $150,000.

“As in the market for primary residences, it appears that many sales of deeply discounted distressed homes are pulling down the median price in the second-home market as well,” Yun says.

Yun says lifestyle considerations are the single most important factor in the vacation home market.

“People are buying weekend homes or recreational property to use themselves or for a family retreat—investment considerations are secondary for most vacation-home buyers with relatively modest interest in renting,” he says.

2008 Second-Home Market Declines

The combination of vacation- and investment-home sales slipped to 30 percent of all existing- and new-home transactions in 2008, according to the NATIONAL ASSOCIATION OF REALTORS ^®‘ latest report.

However, more than four out of 10 investment buyers and more than three in 10 vacation-home buyers paid cash for their properties, with large percentages indicating that portfolio diversification was a factor in their purchase decision.

The market share of homes purchased for investment was 21 percent last year, unchanged from 2007, while another 9 percent were vacation homes, compared with a 12 percent market share in 2007. The total share of second homes declined from 33 percent of all transactions in 2007. In 2005, the peak year for home speculation, 40 percent of sales were second homes.

NAR’s 2008 Investment and Vacation Home Buyers Survey shows vacation-home sales dropped 30.8 percent to 512,000 last year from 740,000 in 2007. Meanwhile, investment-home sales fell 17.2 percent to 1.12 million in 2008 from 1.35 million in 2007. Primary residence sales declined 13.2 percent to 3.77 million in 2008 from 4.34 million in 2007.

Yun says the findings are understandable given the economic backdrop.

“We expected vacation-home sales to fall given the impact of a declining economy on discretionary purchases,” he says. “A steady share of investment-home sales results from buyers taking advantage of deeply discounted prices in many areas, with a smaller portion of new homes in the sales mix.”

Vacation Home Market Snapshot

The typical vacation-home buyer in 2008 was 46 years old, had a median household income of $97,200, and purchased a property that was a median of 316 miles from their primary residence; 35 percent were within 100 miles and 36 percent were 500 miles or more.

When asked about their reasons for purchasing a vacation home, 89 percent of buyers wanted to use the home for vacation or as a family retreat; 27 percent to diversify investments; 27 percent to rent to others; 26 percent to use as a primary residence in the future; and 17 percent for use by a family member, friend or relative.

Some other findings on this market:

• In terms of location, 26 percent of vacation homes were purchased in small towns, 23 percent in a rural area, 23 percent in resorts, 20 percent in a suburb, and 8 percent in an urban area or central city.
• Seventy percent of vacation homes purchased in 2008 were detached single-family homes, 18 percent condos, 5 percent townhouses or rowhouses, and 7 percent other.
• Sixty-nine percent of vacation home buyers and 84 percent of investment home buyers purchased existing homes; the rest purchased new homes.
• Investment-home buyers in 2008 had a median age of 47, earned $85,000, and bought a home that was fairly close to their primary residence – a median distance of 19 miles.
• When asked about the most important reasons for purchasing an investment home, 58 percent said to provide rental income; 38 percent to diversify investments; 19 percent for use by a family member, friend or relative; and 15 percent to use for vacations or as a family retreat.
• Twenty-eight percent of investment homes were purchased in a suburb and another 20 percent in an urban or central city area, 23 percent in a rural area, 22 percent in a small town, and 6 percent in a resort area.
• Sixty-four percent of investment homes purchased in 2008 were detached single-family homes, 22 percent condos, 8 percent townhouses or rowhouses, and 6 percent other.
• Vacation-home buyers plan to keep their property for a median of 12 years; 58 percent plan to keep their vacation home for 11 years or more. Investment buyers plan to hold their property for a median of five years.
• Eight in 10 second-home buyers consider it a good time to invest in real estate, compared with 71 percent of primary residence buyers.

Looking for a second home?  I’m a Resort and Second Property Specialist (RSPS Certified)- I’ll help you find the perfect vacation home in Charleston or on the coast. Call me at (843)324-3476 or email lgordon@carolinaone.com.

Buyers are looking for good deals- this list is the place to find them!!!!  This current list is only for single family homes, and all price ranges are included, as well as all areas in the Charleston Trident MLS.  Our company is the only one with this list, so if you’re thinking of buying a home, CALL ME! 

This list can also help sellers price their homes properly.  If you haven’t made “the list”, then you may want to make a price adjustment so that your home will be included.

Call me to get the list of the best property deals in Isle of Palms, Sullivan’s Island, Mt. Pleasant, or anywhere in the Charleston area!

Call me for information on this fabulous property!

Linda Gordon (843)324-3476 lgordon@carolinaone.com

Designers at Beazer Homes are eliminating long hallways to open up plans. They also are scaling back master bedrooms.

“We found some masters were getting deeper, so the distance from the end of the bed to the dresser across from it was often more than five feet–a no man’s land. Instead, we’re tightening it up and putting that [square footage] somewhere else,” says Kent Goff, Beazer’s vice president of planning and design.

Preferred floor plans include a flexible space that can be attached to master to be used as either another bedroom or an office.

“[People] are looking for spaces that can be used in a couple of ways, depending on how they live their lives,” Goff says. “It’s all about usable, functional space, not just bigger rooms anymore.”

Source: The Atlanta Journal-Constitution (11/29/2008)

Good usage of space and flexibility can be very important to a homeowner.  I’ve got two great suggestions for you on Isle of Palms:  First, a beautifully renovated ranch with incredible curb appeal, thanks to the well maintained yard and live oaks shading the property.  Just two blocks from the beach, 3607 Hartnett Blvd is bright and sunny with skylights, hardwood floors and a great kitchen.  THE PRICE HAS BEEN REDUCED to $749,000!!!    Next take a look at 2 Forest Trail Court 2- Priced at $825,000, this home sits on almost half an acre, on a cul de sac, with renovations throughout including granite countertops, new lighting and new appliances.

 3607 Hartnett Blvd

  2 Forest Trail Court II

Want more details on either of these homes? Please call me directly at (843)324-3476 or email lgordon@carolinaone.com.   With long term rates dipping below 6%, now is a great time to buy on Isle of Palms!

Forbes magazine used data from Zillow.com to identify cities where homeowners are losing value fastest. Cities like Sacramento, Calif., Phoenix, and Las Vegas don’t show up on the list because the massive numbern of foreclosures has already wiped out so much homeowner’s equity. Cities where owners’ equity is still dropping are places where prices were high and there is still plenty of room for them to fall.

Here are the 10 places where home owners are losing value fastest:

1. Virginia Beach, Va.
2. Yuma, Ariz.
3. Cumberland, Md.
4. Bakersfield, Calif.
5. El Centro, Calif.
6. Orlando, Fla.
7. Miami
8. Visalia, Calif.
9. Port Saint Lucie, Fla.
10. Salem, Ore.

Source: Forbes, Matt Woolsey

How about homes on the South Carolina coast, in the Charleston area?  There are currently over 10,000 active listings in the Charleston Tri-County area (Charleston, Berkeley, Dorchester counties).  This hasn’t changed much since 2007- the number of listings was only down by 1.3%

The number of new listings was down by 21.2%. And closed sales went from 10,048 in 2007 to 6939 thus far in 2008- a drop of 30.9%! Based on statistics from the last three months, real estate on the East Islands (Sullivan’s Island and Isle of Palms including Wild Dunes) has an average list price of $1,128,103, an average sales price of $1.003,604.  Average number of days on the market is 244 days.  There are 603 active listings on the East Islands.  Much of the slowing has occurred in the past three months, as market fears and tight lending standards have caused people to wait to buy.  This combined with the fact that many are waiting for the “bottom”.  Unfortunately, we usually don’t know when the “bottom” is until the market is already on the way back up!  If we only had a crystal ball……… 

It can be time consuming however, to go from one open house to another, or to wait for a particular house to be “open”.   A great way to get a first look is by checking on the MLS and looking for photos/virtual tours.  Also, if you are an interested buyer, my services to you are “free”, as most of the time, realtor commissions are paid by the seller. 

If you don’t find the house of your dreams at an open house, let me help you with your search!  Call me at (843)324-3476 or email me at lgordon@carolinaone.com.

Remember that you can get a MARKET SNAPSHOT as a buyer or seller, and look for homes in a particular neighborhood.

Q: Given what’s happening in the financial markets, is now a good time to buy a home?

A: For some people, yes. If you…

• have access to credit
• have fat cash reserves
• aren’t already over-exposed to real estate
• have a secure job or income stream
• expect to hold the property for at least two years

…then now is an excellent time to buy.

Everyone else should take a breather.

The reason: It’s still too early to tell whether the dire predictions many government officials and economists are making about the potential collapse of our economy without a bailout are crying wolf–or if the wolf is really at our door.

For those who are cash-rich, either because they are too wealthy to be badly hurt by any economic swing, or because they were presciently pessimistic and liquidated their portfolios before the meltdown, the coming months—and perhaps years– of uncertainly will provide an unprecedented real estate buying opportunity, of both trophy estates and income-producing investment properties. “The smart people know that the world is not coming to an end,” says Lanse Robb, an agent with LandVest, a brokerage on Boston’s toney North Shore. “They’re making their moves.”

But the average buyer probably doesn’t have the cash to gamble on real estate–and shouldn’t, at least for now. Income growth has stalled for the vast majority of Americans for the past eight years, and home equity has been vanishing rapidly since the peak of the boom in 2005. (Last month, median existing home prices nationwide fell 6%, to $221,900.) The roiling stock market is hardly a comfort either, as everyone who has peeked at a 401k statement over the past week knows.

More critically, jobs are evaporating at an alarming pace. According to government statistics, the unemployment rate rose to a five-year high of 6.1% in August. There have been eight consecutive months of job losses, with a year-to-date total of 685,000. And layoffs aren’t likely to end soon, since factory orders fell 4.5% last month—twice the rate that analysts expected.

Without healthy job growth, it’s likely that the supply of unsold homes will grow. Currently it’s at 11 months, more than double the median supply of two years ago. Until that inventory is burned off, home prices will continue to stagnate or fall in most markets. A government bailout that unfreezes credit markets and staunches the flood of foreclosures that are also depressing prices should help, but the fix will take a long time.

That doesn’t mean that the housing market is doomed; ultimately, it will get better. There’s even an upside: certain markets, particularly on both coasts, were driven up by speculators and became wildly overpriced during the boom. Falling prices means that housing in those markets will eventually become more affordable for average families. Credit Suisse estimates that, nationally, the ratio of median home prices to household incomes will return to their historical average of 2.86 in another 18 months.

In the meantime, if you’re feeling insecure about your job or low on cash, hang tight and save your money. And if you must move, rent.

This article appeared on the real estate section at online.wsj.com.

If you have questions about the market in Charleston, Isle of Palms, Sullivan’s Island or Mt. Pleasant, call Linda Gordon at (843)324-3476 or email lgordon@carolinaone.com.

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold.

Freddie Mac reports that 30-year fixed loans came in at an average of 5.93 percent this week, down from 6.35 percent a week ago and 6.31 percent at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93 percent would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on last week’s rate.

“Consumers see a five in front of mortgages, and they get excited,” says Keith Gumbinger, a vice president at research firm HSH Associates.

Source: The Washington Post, Dina ElBoghdady (09/12/08)

Locally, New South Mortgage is locking in rates at 5.25%!!!! Now is the time to buy!

Contact  Greg Schoonover
Manager / Mortgage Consultant

New South Mortgage
(843) 216-1147w
(843) 708-3776c
(843) 352-8991fax