WHAT IS A HOME: To most people a home is a place to live and is often the most significant investment most people make in their entire lives. It is normally a long term investment that represents the foundation of most families in America today. Beside providing a stable living environment for people it provides emotional and financial security.  So when it comes time to buy a home it is important to sit down and do some planning before going out to buy. An investment in a home is not to be taken lightly and is not like going to the local discount store and buying a shirt off the rack. When it comes time to make the decision to buy you don't have to do it alone. There are numerous options out there. You can search on the internet, use a new home builders site agent, hire your own real estate agent or try to buy from a "For sale By Owner". However, nothing beats having someone represent your interests when it comes time to buy a home.  So please take the time and  carefully explore all options prior to deciding which way to proceed when you finally decide to buy a home.

TO BUY OR NOT TO BUY:  According to the media this is already one of the worst housing downturns in half a century. There is still a huge inventory of unsold homes on the market nationwide. However, what people sometimes seem to forget is that real estate is a local game. While some regions of the country are in bad shape or worse our region here in the Charleston area is in decent shape.  Did you know that  now is a great time to buy a home here in the Charleston and tri-county area.  You have more choice than ever out there and prices have stabilized and are starting to go back up little by little. To buy or not to buy is now a question that potential homebuyers need to ask themselves. Interest rates are still low and homeowners are  offering some very good incentives. These range from price reductions, closing cost assistance and some are even leaving refrigerators behind which is great for first time home buyers. Homebuilders though are cutting incentives as the excess inventory of  new homes continues to fall.  Most incentives are now on “To Be Built” homes which take 6-8 months to complete.  So if you are looking for either new or existing construction or just need up to date information on the housing market please feel free to contact me anytime. 

 A RETURN TO A NORMAL HOUSING MARKET IN 2008 OR 2009? That is the question on everyones mind these days "homesellers and buyers" alike.  To listen to the news you would think  the housing market nationwide is imploding.  Declining home prices,  people losing their homes and lenders going out of business.  While this is happening in many parts of the country other parts while affected are still building and selling homes. Charleston, SC is one such place.  It is true that there is still an excess inventory of existing homes on the market but this excess is a home buyers dream come true. Home builders and existing home owners alike are giving incentives ranging from reducing the price of the home to closing cost assistance.  However, many home buyers are still sitting the market out to see what is going to happen over the rest of the year. As a result there is a pent up demand for housing that is building which bodes good news for homeowners looking to sell their homes in the coming months. Charleston, SC is also becoming a retirement mecca for baby boomers looking to retire. 

According to housing forecasters they see the inventory of existing homes sales bottoming out later this year in the Charleston area. On the other hand new home sales are starting to show an increase. This is due to the inventory of new homes being sold off and builders not starting any new homes unless a contract has been rendered to build one. What this means for for homeowners looking to sell the length of time it takes to sell a home will start to gradually decrease. However, homeowners should be realistic and price their home right in order to sell it since new home builders have restructured their pricing according to current market conditions.  The National Association Of Realtors seems to be in agreement with this prediction.

The new home sector nationwide though still has an ongoing glut of inventory on the market. As a result they are heavily discounting prices in some parts of the country. Some home builders are exiting some markets with one even mothballing homes in a new subdivision in Ca. until the market improves.

On the lending front  lenders have continued to tighten lending standards. This has resulted in a smaller pool of home buyers as those with weaker credit scores have been forced to put off their home purchase until their credit history improves. 

Foreclosures and short sales are starting to increase as those homeowners who just barely qualified for a mortgage or over stretched their budget when they bought their home are beginning to run into difficulty making their payments. This is still the unknown factor that may affect the housing market as lenders are forced to take action. On the positive side though, lenders are more willing to work with homeowners and try to keep them in their homes.

 On the upside lenders and the big three credit reporting agencies are beginning to transition over to a new credit scoring system over the next 12 months that may help potential home buyers.  Things that were once counted against you in the past may or may not be counted against you under the new system. The end result should be a more accurate picture of a borrowers credit worthiness. It is still important to remember that the better your credit score the better terms you will get on your financing. It is highly recommended that potential homeowners continue to pay bills on time and monitor your credit score while the new system is being put in place. All in all their still seems to be plenty of money available for those who qualify.