New Housing Bill!

This is fantastic news for a lot of people! I have already begun calling all of my first-time home buyers from earlier this year and am excited to work with more over the next year! It's nice to have such a warm reminder of why I love my job!

"President George W. Bush signed into law a bipartisan housing stimulus bill Wednesday that is expected to bring greater stability to housing markets nationwide. The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.

The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and can be used for purchases between April 9, 2008, and July 1, 2009. The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits.

'These are all designed to help the housing and mortgage industries and boost the U.S. economy,' NAR President Dick Gaylord said in a statement. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.'”

For the full Realtor magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008073001?OpenDocument

Dreaming of Building?

If you're thinking of buying property to build on, now is a great time to get a good deal on the land and construction. Just think, by this time next year you could be living in your dream home – maybe it's time to get those sketches back out . . .

"More builders are getting into the custom home business because there is more profit and less risk that units will go unsold. The custom share of the market tends to go up during down times, while production building peaks during boom times, according to Steve Melman, an economist with the National Association of Home Builders.

Toll Brothers, K. Hovnanian and many other large builders are rolling out 'build on your own lot' programs in select markets, something few of them have ever done before. Because large builders can provide both custom and semi-custom homes at relatively low prices, they are putting pressure on small custom builders.

Some small builders are responding by joining co-op buying groups. These groups can reduce the costs of building a home by an estimated 4 percent to 8 percent."

For the full Realtor Magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008072803?OpenDocument

Good Credit Is Step One for Buyers

I've blogged about credit before, but it's such a significant issue for home buyers that the topic certainly bears repeating. If you are not absolutely clear on the meaning and content of a credit score, this article will shed a nice, clear light on the subject and help you aim for the score you need!

"Potential home buyers inevitably must confront their credit scores. Here’s a primer for those who have never faced this issue before:

A credit score, commonly known as a FICO score, is derived from a history of taking on debt and paying it off. FICO scores range between 300 and 850, with the highest reflecting the best credit risk. The median FICO score nationally is around 720-723, according to Fair Isaac, the company for which FICO scores are named.

Except for a first-time buyers or those who have a large down payment, lenders will want to see a FICO score of 680 or higher, says Robert Satnick, chairman of the California Mortgage Bankers Association.

To get their FICO score, potential home buyers can go to Myfico.com, a unit of Fair Isaac. Obtaining a FICO score and a credit report from one of the three credit bureaus that collect this history costs $15.95; the combination of all three scores and the FICO report costs $47.85.

The credit factors that determine the score are: a person's payment history (35 percent of the score), how much they owe (30 percent), the mix of credit and installment loans they have (10 percent), the length of their credit history (15 percent), and whether they have applied for new credit recently (10 percent)."

For the Realtor Magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008072205?OpenDocument

Buyers Snap Up Smaller Homes

This trend is not exclusive to the building market, and in a place like Charleston with fabulous smaller properties in styles from classic carriage to clever Craftsman, many people inspired to make more out of less choose to remodel an existing home.

"Ross Chapin and Jim Soules, think small in a way that is practically un-American. They build tract houses that are half the size of the average U.S. home and cost a lot more per square foot. What is surprising is how quickly they sell them. The men are building their fortunes with buyers willing to pay more for less. Mr. Chapin, an architect, and Mr. Soules, a developer, met by chance in 1996, when nearly everyone else in the housing market was thinking big. Now, as the surplus of unsold McMansions increases, other developers are starting to lean their way.

In the past decade, the two men have built about four dozen Craftsman-style cottages that range in size from 800- to 1,500-square-feet. The houses are squeezed into five boutique-sized tracts, all within a two-hour drive of Seattle. Some were melded into more spacious suburbs under zoning laws modified to ease density restrictions for small houses. Most were built around a grass commons shared by a dozen or so like-minded residents who boast of their tract's smallish carbon footprint.

Developers in Milwaukee, Boston, Indianapolis and elsewhere are looking to spread the idea beyond the Puget Sound, and for good reason. While falling home prices and sluggish sales have slashed new housing starts by a quarter in the past year, Messrs. Chapin and Soules say they field a dozen calls a week asking, 'When's your next project?' They have one house left for sale, a two-bedroom, two-bath cottage of 1,000 square feet in nearby Redmond, the home of Microsoft. At $599,950, it isn't cheap. The median price last month for a single-family home in the neighborhood was $542,500. Residents of the tiny tracts say they don't mind paying a premium for such touches are hardwood floors and custom cabinets because the two men develop more than just housing.

'We walk into each others houses and borrow sugar and do all the kinds of things you did in the 1950s,' says Pat Hundhausen, a retired special education teacher.

Mr. Chapin, the architect, uses clever design tricks to give the houses the illusion of more space. Corner windows add light and better views. Large skylights in the upstairs loft keep sloped ceilings from feeling cramped. Hollowed-out interior walls provide built-in bookshelves and cubbies for pictures and knickknacks. Every crawlspace is used for storage. He worked with Mr. Soules to give the houses their signature retro look.

In Indianapolis, developer Casey Land learned of the small home developments in an industry magazine and hired Mr. Chapin for a 21-cottage project. The houses will range in size from 875 to 1,600 square feet. At first, Mr. Land says, his bankers were skeptical, especially those living in 3,000-square-foot homes. 'We're all downsizing,' he says. 'It's tough to do, but we're all getting there.' He predicts the social life will be a stronger draw than square footage. 'These days, we drive to the house, open the garage door, go in,' he says. 'But it's important to get to know your neighbors. I think people miss that.'"

For Sara Lin's full Wall Street Journal article: http://online.wsj.com/public/article/SB121633957931763985.html?mod=2_1578_leftbox

Cash Is King

I've said it before, and I'll say it again: here and now more than ever reasonable real estate is always a good investment! And if you have cash to invest right now, so much the better!

"Some are calling this the best market for investors since real estate tanked in the early 1980s. Investors, alone and in groups, are negotiating volume deals as they purchase whole subdivisions and bundles of 10 to 50 defaulted loans for pennies on the dollar.

'What we're seeing today dwarfs [the 1980s] by five or 10 times,' says Bob Leonetti, president of SMI Funding, an Austin, Texas, company that originates and acquires private and conventional mortgages. 'There are huge opportunities for investors.'

'People who have cash positions now are going to do very well,' says Central Florida real estate practitioner Mike Norvell of Developers Capital Realty in Leesburg, Fla. 'It's just crazy the prices you can buy for right now for cash.'"

For the full Realtor Magazine / Investor's Business Daily article: http://www.realtor.org/RMODaily.nsf/pages/News2008071801?OpenDocument

Sullivan's Island Dream Home

O.k. I have to admit this article is not of particular value or relevance to those interested in the general Lowcountry real esate market, but in these long days I figure that all who appreciate the charms of the area will enjoy flipping through images of a Sullivan's Island dream home. Besides who wouldn't be drawn in by an opening phrase like "Once when we were sailing around Italy . . ." I promise we'll be back to more practical things next week, but for now let's surrender to a little lazy summer dreaming!
"'Once, when we were sailing around Italy, it seemed like ever­y-one lived in a tow­er,' recalls Su­s­­an He­r­long. 'Then after we returned home, we’d go sailing and notice lighthouses and think, ‘Wouldn’t it be great to live in one?’

Such musings formed the nucleus of a design two years ago when she and her husband, Steve, decided to build their dream home on the marshfront lot they had bought on Sullivan’s Island. The dwelling would be based on a shared vision that was a culmination of their travels, their South Carolina upbringing, and the island life they had come to love over 15 years of residing on Sullivan’s Island. But besides lofty towers, other considerations dictated the design as well: “The focus on Sullivan’s over the last few years has been to retain the architectural heritage of the island and the scale of the original cottages,” explains Steve, founder and principal of Herlong & Associates, a local architecture and interior design firm. 'We hoped to create something that people would walk into 20 years after the house was finished and not be able to date it,' Susan adds.

Toward this purpose, Steve took cues from existing dwellings on the island . . ."

For the full Charleston magazine article and especially the slideshow: http://charlestonmag.com/chashome.html

Builders Are Buying

In business and investing following the lead of the "big boys" is a popular strategy. Right now the big boys of building are all setting the same example: BUY! BUY! BUY! Is there a bull on the housing market horizon?

"Builders, including Lennar Corp, KB Home, Hovnanian Enterprises Inc, Meritage Homes Corp., are back buying and developing land again. Lennar spent $162 million on new land in the second quarter and will spend at least $200 million more by the end of the fourth quarter, JP Morgan analyst Michael Rehaut wrote in a note to clients.

KB expects to spend $300 million on land and $400 million on land development this year, Rehaut said.Hovnanian is working on a land development joint venture, company spokesman Jeffrey O'Keefe says. And Meritage is 'beginning to shift from defense to offense,' looking to buy land in the second half of the year, wrote Wachovia analyst Carl Reichardt after meeting with Meritage management.

In theory, buying land now is a smart move, said Todd Lowenstein of HighMark Value Momentum Fund, which owns 187,000 shares of Pulte Homes Inc.'You have to be a predator in these down markets to position yourself for the upturn,' he said."

For the full Realtor Magazine story: http://www.realtor.org/RMODaily.nsf/pages/News2008071102?OpenDocument

Do You Underestimate the Importance of Credit Scores?

Even if you are not in the market to buy or refinance right now, it's important to look out for your credit score, since it can take months to fix mistakes. The good news is that it is not as mysterious as you may have thought! Check out the links below for a concise explanation and specific steps to improve your score!

"While the nation's credit-scoring program is a critical factor in determining what individual borrowers pay in interest on credit cards and mortgages — and even how much they pay for insurance — new research suggests that most Americans still do not understand how the system works.

Respondents to a recent Consumer Federation of America/Washington Mutual Inc. survey largely did not know that credit scores are derived from payment histories, with many participants mistakenly believing that the number is influenced by such factors as income, age, education, and marital standing.

According to Anthony Vuoto of Washington Mutual Card Services, if all consumers took steps to boost their credit scores by at least 30 points, they together would realize as much as $28 billion annually in savings."

For the full Boston Globe / Realtor magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008071104?OpenDocument

For information about how to improve your credit rating: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer27

For information about how credit ratings are calculated: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer28

Today's Active Adult Communities

Yesterday's retirement homes have changed with the changing population to become today's active adult communities equipped for the industrious, silver-haired set. If that sounds good to you – or perhaps like the perfect way to lure your parents to the area – check out Del Webb Charleston, which is actually located in Summerville and has recently opened their model park.

"Active adult communities, aimed at residents older than 55, have to work hard at keeping up with their customers.

Developers of these communities are now offering features like home offices, state-of-the art, distance-learning centers and athletic facilities for the most physically fit user. Pulte Homes Inc.'s Del Webb brand is a U.S. leader, with 60 communities in 20 states. About 288,000 people were living in Del Webb communities across the country at the end of 2007.

Caryn Klebba, spokeswoman for Del Webb, says the company's research shows that half the residents of each Del Webb community are still working in some capacity, and three-fourths still exercise at least three times a week.

Stephan and Lisa LaCount, who operate ActiveAdultLiving.com, a Web site that lists more than 3,000 active adult communities, say that no matter where the homes are located, the key to their success is offering an attractive lifestyle and a wealth of amenities."

For the full Realtor Magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008070706?OpenDocument

National Market Predictions

How to sum up the latest National Association of Realtors predictions? Things are calming down with adjectives like "modest," "moderate" and "slight" peppering the latest forecast of things to come. Following times of wild ups and downs people sometimes get conditioned to look for superlatives like ROCK BOTTOM and LOWEST EVER or on the selling side ALL TIME HIGHS screaming from the headlines, but remember in all investing and especially in real estate slow and steady wins the race! Don't be misled by quieter times, here and now more than ever reasonable real estate is always a good investment!

"Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by NAR.

Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. NAR’s housing affordability index is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008.

Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million.

The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900. Growth in the U.S. gross domestic product (GDP) is seen at 1.6 percent in 2008 and 1.4 percent next year. The unemployment rate should average 5.4 percent this year and 5.8 percent in 2009. Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009."

For the full Realtor magazine report: http://www.realtor.org/RMODaily.nsf/pages/News2008070801?OpenDocument

Quick Sales Still Possible

I always remind people that we can sell a house in five minutes, if we list it for $5 – a bit of hyperbole to drive home the point that the market is not as unpredictable as it sometimes seems. The question is what in your situation is fixed and what can function as a variable. For instance, how much time on the market could you trade for a higher price? How much of the inconvenience of staging your home could you trade for a shorter time on the market? And so it goes.

My role as a real estate professional is to help you identify the variables in your particular equation and come up with a solution that works!

"While most homes are staying parked on the for-sale market for a longer time these days, occasionally a residential property turns over in 24 to 48 hours. Such transactions elevate the mood of the professional real estate community and its clients, while offering a snapshot of ideal conditions that contributed to the near-immediate sale and that could possibly help move other listings faster, as well.

According to real estate professionals, the key components of a quick turnaround on a home for sale include realistic pricing, a polished and well-staged appearance, the right location, and the interest of a prospective buyer who is compatible with the property."

For the full Realtor magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008070703?OpenDocument

Celebrate Freedom!

With so many events to choose from, I'm sure that you and yours will find a great way to celebrate this most wonderfully American of holidays! Happy Fourth of July, and God bless America!

For the Patriots Point celebration: http://patriotspoint.org/news_events/event.html?id=17
For the SC Aquarium celebration: http://www.scaquarium.org/pdfs/july42008_Flier.pdf
For Summerville's "Red, White & Blue on the Green": http://www.summervilledream.org/events.php
For North Charleston's Riverfront celebration: http://www.northcharleston.org/
For I'On's celebration: http://www.ioncommunity.com/outside_home.asp

For a comprehensive list of fireworks viewing locations all over the Lowcountry, check out the Post & Courier's guide:

Haint Blue

I had often admired the lovely, traditional blue of Lowcountry porches, but never particularly expected there was a reason for it! After mentioning it to a friend, and incidentally my favorite home inspector, I received a link to this article. You learn something new every day!

"From periwinkle and turquoise to more mellow shades the color of the sky, the paint of choice for many porches across the country is blue. Is it just trendy? Or a talisman of some sort? Carl Langhorne, assistant manager at Strosnider's Hardware store in Bethesda, Md., says that some customers say they want a color that reminds them of the sky, others like blue because it's a calming color.

Still others believe that blue chases away evil spirits. In the South Carolina Lowcountry, there's a name for the blue of porch ceiling: haint blue. Alphonso Brown, a guide with Gullah Tours in Charleston, S.C., explains that a haint is a spirit or a ghost, and in Charleston, many people also paint the trim on their houses blue to ward off evil spirits. Other theories also exist. Some say blue helps extend daylight as dusk begins to fall, and many, including Brown, believe that it helps keep bugs away."

For the full "All Things Considered" article and to listen to the radio piece: http://www.npr.org/templates/story/story.php?storyId=5645263&sc=emaf