Welcome and Thank You!

I want to personally thank you for cheking out our blog and staying in touch with the real estate market in this area. I have a daily focus on the market and keep my finger on the pulse of each community we serve. I hope that you find the information contained here to be insightful and helpful and that your connection allows you comfort in relying on me for all your real estate needs no matter where you live in the country. Have an awesome day!

Thursday, March 15, 2012

A Recent article I wrote for the Barefoot Resort newsletter -
Ever Worry About Your Shadow?

Shadow Inventory.  It’s the new “catch phrase” in the real estate and lending industries, and it is something to be concerned about as a homeowner.   Recently, there was a settlement between several of the largest banks and the government on what had been a process called Robo-signing.  This pending settlement has caused a tremendous delay in lenders foreclosing on properties in default.  With the 25 billion dollar settlement comes a very clear roadmap for lenders to use in processing foreclosures nationally.  The pent-up properties that could have been foreclosed on months and months ago will now come to market freely.  This supply of real estate inventory is called “Shadow Inventory”.  Most of what you have been reading lately related to real estate is that the market is improving, which it is.  January 2012 was the best January in 4 years.  Last month will prove to be even better than January.  The demand for properties in our area has jumped considerably since leaving 2011 behind.  In a normal market this increase in demand, along with fewer properties on the market would positively affect pricing.  That will not be the case this year.  The demand will be offset by the normal properties coming to market, plus the build-up of the shadow inventory, which will be priced as distressed.

Most experts are calling for our state to see stable pricing this year with a few areas decreasing another 3 – 5% by year end, so it could be worse.  We could be living in Nevada or Florida.  The point is in two parts; first, if you are happy here and not thinking of selling then who cares what prices will do, right.  Second, if you are in the “I am going to wait until prices increase” group, your wait was just extended a few years.  The flow of inventory has already started, but it will increase as we get into June and July, so if selling is being considered anytime over the next 18 months now is the time to call your Realtor.

As I mentioned before, and this is the positive news, the demand for properties in Barefoot and beyond has taken a huge jump and properties are selling faster.  Lending is expected to become a little easier this year for buyers, which will bring even more demand into the market.  If everyone is walking around whistling in January and February, just wait for the excitement everyone feels as we move into spring.

The Barefoot Numbers –

There are currently 236 properties on the market in the resort, which is an increase of 2 from last month.

Single Family – 27 total including 4 pending and 5 distressed

Condo/Townhome – 184 total including 31 pending and 35 distressed

Land – 21 total including 2 pending and 6 distressed.

In conclusion, you should be very excited about the months ahead.  Even with the threat of increased distressed properties coming on the market and that impacting the value of your property, we are still seeing a very robust market.  It would be far worse to have the “Shadow” after us and the demand to purchase real estate as it was in 2010.  We will have a better year in 2012 in the resort than any over the last 3 – 4 years and I think as pricing comes back that we will lead the way.  If you would like more information about the robo-signing and shadow inventory just shoot me an email and I will reply with a comprehensive report for you.  You can reach me anytime at info@benguyton.com or (843) 241-1929.  Keep looking for ways to positively impact your community and I will see you around the neighborhood!

Timing is Right!

Let's assume for a second that you are interested in buying real estate and that you have the means to make a purchase.  Let's also assume that you will need to finance your new property.  You may want to consider getting a move on!

While pricing in our overall market has begun to stabilize, interest rates no longer are.  Just over the past week, rates have jumped about 1/2 point.  Interest rates do have a tendency to move up and down, but considering that the rates have been very stable over the last 6 months, then jump .5% in a week should be concerning for you.  If the new norm for rates is going to be 4.25%, then you have missed that much sought after, mystical "bottom" that so many home buyers have been waiting on.

Since January 1, 2012 we have seen far less inventory on the market, less distressed properties available and the ones that are available bringing higher prices, and now, interest rates increasing.

These are all good signs....if you're a home seller.  As a home buyer, it really points to your wake up call.  If you have been waiting for that best deal and know that home ownership is for you, then it is truly time to take action.  It is not wishful thinking by another Realtor, it is proven in the statistics that all experts examine when determining a market.

If you are in the group that still expects pricing to go down some more, then you should get really familiar with the graph that shows how much buying power is lost per upward tick of the interest rate.  I can send you copy if you need it.  The same $200,000 home became more expensive over the last week by about $1,200 - $1,500 per year due to the rate increase.  How long are you willing to gamble that prices will go down another 3% and not have the interest rate offset that decrease??

We are excited to see the increased demand and the market moving toward stabilization.  Down the road in a year or so you may even start to see the word "Appreciation" being used again to describe more than how I feel about you for reading my blog!

Have the best day today!