NOW is the Time to "Get OFF That Fence"

Hey!!!! NOW .... is definitely the time to “get off that fence”.

With the economy being down for the last few years, many people have put off purchasing a home for different reasons. Jobs, home prices falling, banks making lending nearly impossible, media news reports, high gas prices and other reasons have all had an impact on the housing market.

With interest rates being low for the last few years, it is has not even been enough to convince people that its a good time to purchase a home. It depends on each individual’s situation but everyone has to decide for themselves.

If you plan on making a long-term purchase on a home, then it would be a smart decision to buy a home now. I see the tides changing before my own eyes with this market. I personally have actually been closing on sales these past few months when in the past, the market was quiet and had no pulse. The buyers in the past were either people transferring for work purposes, retirees, or the “bargain hunters” and when I say “bargain hunters” I mean SERIOUS, cut throat, real estate, savvy, business investors who know and understand the market. They know how to get exactly what they want and for the price that they are willing to pay.

Now that the tides are making a shift, I would personally HIGHLY suggest either pulling that trigger to buy now or if you are a seller, to hang onto your property. In the recent past, I had offers coming in for my personal property over $200,000 below bank appraised values and now, I have people actually looking at my some of my properties at full asking price! There has definitely been an increase in traffic ...especially in Pawleys Island which is where I reside.

But only after shopping the market for the very best deal and make sure you are getting a very good investment for your hard earned money.

Now if you know you may have to relocate for job reasons or any other reasons, then it may not be a good time to buy because the home may not gain enough equity for a quick re-sale. It would not be financially beneficial for a short-term investment in this current economy.

Making constructive predictions in the current market is not easy at all. In the past, the huge uncertainty and overbearing gloominess made it all too easy to predict the end of the world as we know it. However, the one thing that the past tells us is that however stormy the current conditions, things will improve and more often than not, create significant opportunities.

Melissa

Realtors In Pawleys Island

Life In Pawleys Island

A Little Bit about Pawleys Island Lifestyles ....

Pawleys Island is a little ole' town on the East Coast that has a whole lotta history goin' on. They have a very active community with most of its full time residents and vacationers happy to call Pawleys Island home. It is not only a place to own a home, it is a lifestyle that is enriched by its people, heritage, natural beauty, and location. There are so many activities, historical sites and area attractions that it could keep a vacationer/homeowner busy here for a lifetime. Many vacationers have been converted to residents when just visiting, because of one or more of the factors above. In fact, Pawleys Island is considered to be the oldest seaside community in the United States. It started as a "vacation" spot (c. 1700's) for plantation owners in Charleston to escape the hot summer days & pesky mosquitoes. Some families who currently live here have a deep connection to the past, and their property in Pawleys Island has been in their family for generations. On the other hand, many locals once called another place home, and are now considered local after living here for 12 or more years. That's an ongoing joke with the Natives here. They say that you "qualify" to be called a "native" if you have lived in Pawleys for at least 12 years. :) This is just a silly observation, not to be taken to heart. Pawleys Island has much heart & diversity and yet stays much the same, giving it that lowcountry lifestyle. We like to call it an "arrogantly shabby" lifestyle. If you are here visiting and are tempted to purchase a "home away from home" in Pawleys Island, please be sure to give the Pawleys Gal a call!

Melissa Dunn

Realtors In Pawleys Island

Lenders are Loosening Their Belts ...

According to a Real Estate report last Tuesday, Capital Economics expects the housing crisis to end this year which is such a breath of fresh air for our economy. One of the main reasons is: loosening credit.

The average credit score required to attain a mortgage loan is now 700. This score is indeed higher than the previous requirements prior to the “bubble” crisis but it is consistent with the requirements one year ago.

Apparently, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability. With the lenders being a little more flexible, this will only help those who can afford to obtain a loan and maintain it as well. I personally as a single mother of three children struggled myself to get a loan due to my lack of work history. I was a stay at home mom for over 10 years and then I hit the workforce. My credit score was well over 750, had money in the bank, and plenty of equity, but still ... no loan.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings. Encouraging right?

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements which is what I had struggled with personally for the last two years. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan. In fact, the same exact thing happened to one of my contracts with a client last year as well. They were pre-qualified to purchase a property, agreed on a price, contract was ratified, but then ..... once again ... no loan = no go which is NOT GOOD!

Unfortunately, with the lenders loosening their belts, the improvements on credit conditions won’t be enough to generate actual house price gains. So, it is safe to say that the prices of the homes will not be necessarily be increasing but may be stabilizing. You will see a switch in the market when the inventory gets low and that is when the market will slide into a “sellers” market once again. This won’t be happening anytime soon, but at least there is now a little light at the end of the tunnel!

Melissa Dunn

Homes for sale in Pawleys Island

Real Estate in Pawleys Island

Realtors in Pawleys Island

Home Sales In Pawleys Island

Home sales might have fallen in February, but upward revisions to January’s month’s pace and the first yearly increase in prices in 15 months pointed to steady improvement in the housing market.

Existing home sales fell less than 1% percent in February from January but still notched their second highest level since May 2010, the National Association of Realtors reported.

“We are starting to improve slowly. There is some encouraging news, but the dramatic things that need to happen to really turn the market around aren’t there,” said Mitchell Hochberg, Principal at Madden Real Estate Ventures in New York.

Real Estate in Pawleys Island is also starting to pick up. Our office at Select Homes and Services is seeing many more closings each month. Last month distressed properties (foreclosures and short sales) which typically occur at deep discounts, made up 1/3 of overall sales last month.

Investors bought 23% of homes sold last month, with first-time buyers accounting for about a third of the real estate transactions. So, it’s time to get off the fence before the interests rates begin to soar again and the pricing of homes start to increase. Could we be possibly be entering a seller’s market? It’s not likely that it will happen anytime soon, but past real estate trends show that it is a really a likely possibility!

So, if you are looking buy or wanting to sell real estate in Pawleys Island, please be sure to give the Pawleys Gal a call!

Melissa Dunn

Pawleys Island Homes for Sale

Homes for Sale in Pawleys Island ...

Home buying usually goes into hibernation during the winter months but according to new reports, the market may be shaking off the winter's chill ... especially now that it is FINALLY Spring!

Mortgage activity which often measures both financing and new applications has increased by over 10% over the winter months according to Mortgage Banker's Association. Refinancing activity surged sharply with some lenders seeing the number of applications double, the MBA also said. According to a Federal Housing Finance Agency Report, government mortgage giants Fannie Mae and Freddie Mac refinanced nearly 35,000 loans under the HARP program last Fall which is a jump of more than 20% over August!

These are all good signs for the Real Estate market .... especially for those of you looking to buy or sell a home in Pawleys Island.

If you are looking to buy or would like to sell, please give the Pawleys Gal a call!

Melissa Dunn

Pawleys Island Homes for Sale

Realtors in Pawleys Island