WHY BUY NOW?

 

Talking about national averages is about as effective as having a national weather forecast. Like the weather, all Real Estate markets are LOCAL!

  • 2008 will be a year of opportunity where there will be serious, healthy business in South Carolina. Furthermore, NAR's economists predict that the market will return to normal by 2009.
  • One of the biggest mistakes that reporters make is talking about national trends. Nationally, 2007 was the fifth best year ever on record (6th for South Carolina). Home prices declined about 1.5 percent (flat in South Carolina) after a 50 percent run up in prices.
  • The challenge is that national numbers are pretty much irrelevant. Talking about national averages is about as effective as having a national weather forecast. Like the weather, all real estate markets are local. In fact, you may have a buyer's market and a seller's market operating within a single market area based exclusively upon price point.
    1. New housing starts: Even though these are dropping, there was too much building in recent years. The market is simply adjusting to normal supply-and-demand pressures. The inventory is "being controlled, which makes stabilization occur more quickly."
    2. Foreclosures: According to NAR, the 41 percent increase in foreclosures has resulted primarily from investor-heavy real estate purchases in Arizona, California, Florida and Nevada. The majority of these individuals are flippers, whose investments did not payoff. More importantly, the number of foreclosures in Utah, New Mexico, North Carolina and South Carolina (44th overall in number of foreclosures) is actually declining.
    3. The recovery has started: Other than the three states hit heavily by job losses in the automotive industry (Indiana, Michigan and Ohio), the states that first experienced a downturn in the Northeast, are now in recovery. Specifically, Connecticut, Massachusetts, New York and Rhode Island were the first to feel the slump and are now well into a recovery. Furthermore, there appears to be a pent-up demand for first-time buyer properties due to a large number of Gen Y's (born 1977 to 1994) that are now buying their first homes. Falling interest rates will motivate many of these buyers to step into the market now.
    4. New jobs and corporate profits are still strong: Corporate profits are still strong with companies as diverse as Microsoft and Jack Daniels reporting close to record profits. Furthermore, the economy has generated 4 million net new jobs and wages are rising.
    5. A weak dollar may harbinger more foreign investment in U.S. real estate. Although the decline of the U.S. dollar will end up costing us more when we go overseas or purchase imports, it has resulted in more manufacturing jobs returning to the U.S. It also may mean more foreign investment in U.S. properties as well. Just a few years ago, the Canadian dollar was only worth 70 cents in U.S. currency. Today, the Canadian dollar has been hovering at about $1.05 to $1.10 U.S. What this means is that we can expect more Canadians and Europeans to be purchasing U.S. property, because our prices are approximately 50 percent cheaper than they were just three years ago.
    6. Real estate: Still the best shelter: For those agents who represent reluctant first-time buyers, Yun points to some interesting research from the Federal Reserve. Between 1995 and 2004, the average renter accumulated $4,000 in wealth. In contrast, the average homeowner accumulated $184,400. Furthermore, the typical homeowner holds their property for six years. Within this period of time, NAR's research shows that approximately 97 percent of the homeowners will have a positive equity position after that period of time.

Bottom line: 2008 represents the best window that buyers will have to find excellent deals with excellent financing. Get the word out there. If they wait, prices and interest rates will be higher and the reluctant buyer may be forced out of the market.

Another link that may interest you that touches base on the LOCAL Hilton Head Area Real Estate Market can be read at http://www.islandpacket.com/news/local/story/116119.html .

 

Still Need more Reasons...

I bet you’ve been thinking about Buying Real Estate in The Hilton Head Island, South Carolina Area, but wasn’t sure if it is a good time. Well, You are in luck because it is not only a good time to buy, but it is a GREAT time to buy! Some of the best reasons to buy in Hilton Head Island and Bluffton Areas are:

  • Prices are forecasted to rise again in 2008 – Kiplinger’s 2/23/2007
  • The Stock market is at Historical High’s – What happened to Buy Low, Sell High?!?
  • Selection sis excellent! With more properties available, finding the right one hasn’t been this easy in decades.
  • Mortgage rates are still historically low
  • Smart money is Buying Real Estate
  • Prices are excellent
  • Lack of available land to develop will drive prices on existing properties
  • Money out of the Stock Market Boom will move to Real Estate
  • Get ahead of the Baby Boomers that are moving to the Southeast!

And most of all… The Majority of Wealth in America has been, and will continue to be made, in Real Estate. This is only a small sampling of the reasons you need to start looking at Hilton Head Island Real Estate immediately.

Remember... ALL Real Estate is Local . Don't listen to the news in Atlanta, New York, California or Detroit to know what is going on in Hilton Head Island... Listen to thee professionals in Hilton Head Island, South Carolina!

If you wait for the Media to tell you that we are past the bottom of the market, and that the market has gone up for 6 months in a row, all that means is that you've missed the best time to buy! So call me now!